I just formed my LLC and haven't done anything with it yet. Do I file?

If your LLC had ANY transactions in the year — including the capital contribution to fund the bank account — yes, file Form 5472. If it had genuinely zero activity (no bank account opened, no money in or out), you can argue no reportable transaction occurred. Most owners file anyway for safety.

Can my US CPA file this for me?

They can, but most US-based CPAs see this filing once or twice in their career and aren't comfortable with it. Expect $400-$800 and 1-2 weeks of back-and-forth. Our flat-fee service from $199 (IRS fax delivery included) takes 15 minutes and is reviewed by an accountant on our team.

What if I have multiple foreign-owned LLCs?

Each one needs its own Form 5472 + pro forma 1120 — separate filing per LLC. You'd start a separate filing in our portal for each LLC.

Do I need a US ITIN or just my foreign tax ID?

You don't need a US ITIN. Form 5472 accepts your foreign tax ID (FTIN) or a self-assigned Reference ID. If you leave the Reference ID blank in our wizard, we generate one based on your name (e.g. SMITHJA7B2 — letters and numbers only, no special characters, per IRS rules).

Does filing Form 5472 mean I owe US tax?

No. Form 5472 is an information return — disclosure only. Most foreign-owned single-member LLCs owe $0 US federal income tax regardless of whether they file Form 5472. The form doesn't itself trigger any tax liability.

What's the easiest US state for a foreign-owned LLC?

Wyoming for cheapest ongoing fees ($60/year state, no state income tax). Delaware for investor-friendly governance (but $300/year franchise tax). New Mexico, Florida, Nevada also good. Avoid California and New York unless you have nexus there — they impose more state taxes.

What if my LLC is dormant — no revenue all year?

If you had even one capital contribution (e.g. wiring $1,000 to fund the bank account), that's a reportable transaction and you file. If truly dormant (no bank account, no activity), you may not have a filing obligation — but most owners file regardless to avoid the $25,000 penalty risk.

How do I know if my LLC has US-source income?

If your customers are outside the US and you have no fixed US place of business or US employees, your income is foreign-source. If you have a US warehouse (e.g. Amazon FBA), US employees, or US real estate, you may have US-source effectively connected income. Talk to a CPA for the borderline cases.

Do I file BOI report too?

Yes — separately. Beneficial Ownership Information report is due within 30 days of LLC formation, filed for free at fincen.gov. It's a separate FinCEN obligation, not part of Form 5472. We don't handle BOI; it's a self-serve 15-minute form on the FinCEN website.

What's the worst case if I just never file?

The IRS eventually issues a CP-15 penalty notice ($25,000 per missed year per form). If you ignore it past the 90-day window, continuation penalties stack at $25,000 per 30 days. A single LLC with 1 missed year could become $100,000+ in penalties within 18 months of ignored notices. Don't let it get there — file under DIIRSP now while it's still available.

For foreign-owned US single-member LLCs

Single-member LLC with a foreign owner — what you actually have to file

If you are a non-US person who owns a single-member US LLC (Wyoming, Delaware, New Mexico, Florida, Nevada, or any state), you have one critical annual federal filing the IRS imposes on you: Form 5472 attached to a pro forma Form 1120. Miss it and the IRS charges $25,000 per year, per form — automatically, with no warning. This is the complete guide to what you owe, when, what your LLC actually pays (often nothing), and how to file it in 15 minutes.

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Reasonable cause statement (if late)
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Why the IRS singles out foreign-owned single-member LLCs#

Most US single-member LLCs are "disregarded entities" — for tax purposes the IRS treats them as if the owner just earned the income directly. For US owners that's simple: pile it on your personal Schedule C of Form 1040 and you're done. For foreign owners it's different. Before 2017, foreign-owned single-member LLCs were also disregarded for ALL tax purposes — including reporting. That created a transparency loophole: non-US persons could hold US LLCs and the IRS had no visibility into related-party transactions, beneficial ownership, or fund flows. Since 2017, Treasury Regulation § 1.6038A-1 reclassifies foreign-owned disregarded entities as corporations specifically for Section 6038A reporting. That triggers an annual obligation to file Form 5472 to track every related-party transaction between the foreign owner and the LLC. The substantive tax treatment didn't change — the LLC is still disregarded for income tax. Only the disclosure obligation was added.

Do you actually have to file?#

Almost certainly yes, if you meet all three: 1. You own (100%) a single-member US LLC. Multi-member LLCs file Form 1065 instead and aren't covered by this guide. 2. You are NOT a US person — not a US citizen, not a green card holder, not a US tax resident (substantial presence test, etc.). 3. Your LLC had at least one reportable transaction in the year — capital contributions in, distributions out, loans, payments to or from you, or any related-party transaction. A reportable transaction is interpreted broadly. The list of things that count: • Wiring USD into the LLC's bank account to fund operations. • Paying yourself a distribution. • Loan from you to the LLC (or LLC to you). • Renting your home office to the LLC. • Payments between the LLC and any other entity you control (a foreign company, another US LLC). • Sales of property between you and the LLC. In practice every active foreign-owned LLC files every year. The only realistic exception: an LLC that's truly dormant (no bank account opened, no money moved, no contracts) for the entire year.

What you owe vs. what you file#

These are different things — and the distinction matters: Form 5472 + pro forma Form 1120 (always required): • Annual federal information return. • Discloses related-party transactions. • No tax liability calculated on these forms. • $25,000 penalty per missed form per year. • Due April 15 (October 15 with extension). US federal income tax (usually $0): • Foreign-owned single-member LLCs are disregarded for tax. • If income is foreign-source and you have no US trade or business: $0 US federal income tax. • If income is US-source effectively connected with a US trade or business: file Form 1040-NR personally; may owe US tax. • Most ecommerce / SaaS / consulting LLCs serving non-US customers owe nothing. State tax (depends on state): • Wyoming, Delaware (out-of-state), Nevada, Florida, Texas, New Mexico: no state income tax on LLCs. • California, New York, others: state-level tax may apply. • Annual report fee: varies $60-$300/year by state. Most foreign-owned single-member LLCs that sell internationally owe $0 in US federal tax but still must file Form 5472 + pro forma 1120 every year just to stay compliant.

What is the $25,000 penalty in detail?#

The IRS penalty for not filing Form 5472: • Base: $25,000 per form, per year. Per LLC. • Continuation: another $25,000 per 30-day period after IRS notice, if not filed within 90 days. • No statutory cap. • Assessed automatically by IRS computer system, no human review. Math examples: • 1 LLC, 1 missed year: $25,000. • 1 LLC, 3 missed years: $75,000. • 2 LLCs, 3 missed years each: $150,000. • 1 LLC, 1 missed year + ignored CP-15 for 12 months: $25,000 + 12 × $25,000 = $325,000. This is the single largest compliance risk most foreign LLC owners are unaware of. The penalty is for failing to FILE the disclosure return, not for failing to pay tax. Most foreign LLC owners owe zero US tax — the penalty applies anyway. If you've missed prior years, file under DIIRSP (Delinquent International Information Return Submission Procedure) immediately. Most first-time catch-ups are accepted with no penalty assessed.

What are typical foreign-owner LLC profiles?#

Profile 1: SaaS founder. • Delaware LLC formed via Stripe Atlas. • Owner abroad (e.g. UK, Singapore, Hong Kong). • Selling SaaS via Stripe to global customers. • Revenue $50K-$2M. • US federal tax: $0 (no US trade or business, foreign-source services). • Required filings: Form 5472 + pro forma 1120 federal, Delaware franchise tax $300, BOI report once at formation. Total federal compliance with us: $98/year. Profile 2: Ecommerce / dropshipping. • Wyoming LLC. • Owner in Vietnam, Mexico, etc. • Shopify store with worldwide customers (no US warehouse). • Revenue $20K-$500K. • US federal tax: $0 (no US-source income). • Required filings: Form 5472 + pro forma 1120 federal, Wyoming annual report $60, BOI once, sales tax if nexus crossed. Total federal compliance with us: $98/year. Profile 3: Consulting / agency. • Wyoming or Delaware LLC. • Owner in EU, India, Brazil. • Consulting clients in US and abroad. • Revenue $30K-$300K. • US federal tax: $0 if consulting performed outside the US. • Required filings: Form 5472 + pro forma 1120 federal, state annual report. With us: $98/year. Profile 4: Stripe Atlas Delaware LLC, no revenue. • Just formed. • Funded $5K-$10K to open Mercury bank account. • No customers yet. • Required filings: Form 5472 + pro forma 1120 federal (the capital contribution counts as a reportable transaction). With us: $98/year.

What's in the federal filing package#

The complete federal filing package every year: 1. Cover letter (1 page) identifying the filing. 2. Pro forma Form 1120 with entity info and "Foreign-Owned U.S. DE" stamp. 3. Form 5472 (Parts I, II, III, IV, V, VII). 4. Part V supporting statement listing each reportable transaction. 5. Reasonable Cause Statement (only if filing late under DIIRSP). Total: 5-8 pages. Faxed as one package to the IRS Ogden PIN Unit at +1-855-887-7737. No income tax calculation, no Schedule C / 1040, no payroll forms (unless you have US employees, which most foreign-owned LLCs don't).

When and how to file#

When: April 15 of the year following the tax year. October 15 with Form 7004 extension. How: • Fax to +1-855-887-7737 (IRS Ogden PIN Unit) — preferred. Get a timestamped transmission receipt as proof of filing. • Mail to IRS Ogden, UT 84201-0023 — backup. Use certified mail with return receipt. • E-file: NOT available for foreign-owned DE filings. Who: • You, the owner. Pen signature required on Form 1120 (no separate signature on Form 5472). With us: • Wizard (12 questions) → generated PDF → sign once on screen → accountant review → fax to IRS → timestamped receipt. ~15 minutes total. Standard $199 · Rush $279 · Premium $449. IRS fax delivery included. +$149 per additional past year.

What do you do if you've missed prior years?#

Many foreign owners discover Form 5472 a year or more after forming their LLC. The IRS provides DIIRSP — Delinquent International Information Return Submission Procedure — as the standard catch-up: • File all missed years together as one package. • Include a Reasonable Cause Statement. • Fax to +1-855-887-7737. • Most well-documented first-time catch-ups are accepted without penalty. Our DIIRSP packages: • 2-year catch-up: Standard $348 · Rush $428 · Premium $598 (fax included). • 3-year catch-up: Standard $497 · Rush $577 · Premium $747 (fax included). • Reasonable cause statement auto-generated, accountant-reviewed. Don't wait. Once the IRS issues a CP-15 notice for a missed year, DIIRSP is no longer available for that year and you're stuck with a much harder post-assessment appeal.

Common scenarios we don't cover#

Our service is built specifically for single-member, foreign-owned, disregarded LLCs with no US tax liability. Scenarios that need a CPA, not us: • Multi-member LLCs (need Form 1065, not 1120). • LLCs that elected C-corp taxation via Form 8832 (need full Form 1120 with income/tax). • LLCs with US-source effectively connected income (need Form 1040-NR personally, possibly more complex 1120 filing). • LLCs with US employees (need payroll tax filings — Form 941, W-2, etc.). • LLCs that own US real estate generating rental income (need 1040-NR and 8288 withholding). • LLCs with Amazon FBA inventory in US warehouses (may be US trade or business; talk to a foreign-seller CPA). • LLCs with complex international structures (foreign parents, multiple jurisdictions, cost-sharing agreements). For the standard profile — solo foreign founder, US LLC, customers worldwide, $0 US tax — our service is the right fit. Anything outside that: get a CPA familiar with foreign owners.

The fastest way to file#

Our 15-minute online filer handles everything for the standard foreign-owned single-member LLC case: • 12-question wizard pre-tuned for non-US founders. • Pre-fills the next year from your prior filing. • Generates the complete package: cover letter, pro forma Form 1120, Form 5472 (all parts), Part V supporting statement, Reasonable Cause Statement (if late). • In-portal canvas signature — no printing, scanning, or uploading needed. • Accountant review on every package before submission. • IRS fax delivery + timestamped receipt as proof of filing. • 100% money-back guarantee if we fail to submit. Pricing: • 1 tax year: Standard $199 · Rush $279 · Premium $449 (fax included) • 2 tax years (DIIRSP catch-up): Standard $348 · Rush $428 · Premium $598 (fax included) • 3 tax years (DIIRSP catch-up): Standard $497 · Rush $577 · Premium $747 (fax included) • +$149 per additional past year beyond the base package

Skip the work — file in 15 minutes.

We generate every form, you sign one PDF, we fax it to the IRS Ogden PIN Unit. Starting at $199. IRS fax delivery included on every plan.

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Frequently asked questions

I just formed my LLC and haven't done anything with it yet. Do I file?: If your LLC had ANY transactions in the year — including the capital contribution to fund the bank account — yes, file Form 5472. If it had genuinely zero activity (no bank account opened, no money in or out), you can argue no reportable transaction occurred. Most owners file anyway for safety.
Can my US CPA file this for me?: They can, but most US-based CPAs see this filing once or twice in their career and aren't comfortable with it. Expect $400-$800 and 1-2 weeks of back-and-forth. Our flat-fee service from $199 (IRS fax delivery included) takes 15 minutes and is reviewed by an accountant on our team.
What if I have multiple foreign-owned LLCs?: Each one needs its own Form 5472 + pro forma 1120 — separate filing per LLC. You'd start a separate filing in our portal for each LLC.
Do I need a US ITIN or just my foreign tax ID?: You don't need a US ITIN. Form 5472 accepts your foreign tax ID (FTIN) or a self-assigned Reference ID. If you leave the Reference ID blank in our wizard, we generate one based on your name (e.g. SMITHJA7B2 — letters and numbers only, no special characters, per IRS rules).
Does filing Form 5472 mean I owe US tax?: No. Form 5472 is an information return — disclosure only. Most foreign-owned single-member LLCs owe $0 US federal income tax regardless of whether they file Form 5472. The form doesn't itself trigger any tax liability.
What's the easiest US state for a foreign-owned LLC?: Wyoming for cheapest ongoing fees ($60/year state, no state income tax). Delaware for investor-friendly governance (but $300/year franchise tax). New Mexico, Florida, Nevada also good. Avoid California and New York unless you have nexus there — they impose more state taxes.
What if my LLC is dormant — no revenue all year?: If you had even one capital contribution (e.g. wiring $1,000 to fund the bank account), that's a reportable transaction and you file. If truly dormant (no bank account, no activity), you may not have a filing obligation — but most owners file regardless to avoid the $25,000 penalty risk.
How do I know if my LLC has US-source income?: If your customers are outside the US and you have no fixed US place of business or US employees, your income is foreign-source. If you have a US warehouse (e.g. Amazon FBA), US employees, or US real estate, you may have US-source effectively connected income. Talk to a CPA for the borderline cases.
Do I file BOI report too?: Yes — separately. Beneficial Ownership Information report is due within 30 days of LLC formation, filed for free at fincen.gov. It's a separate FinCEN obligation, not part of Form 5472. We don't handle BOI; it's a self-serve 15-minute form on the FinCEN website.
What's the worst case if I just never file?: The IRS eventually issues a CP-15 penalty notice ($25,000 per missed year per form). If you ignore it past the 90-day window, continuation penalties stack at $25,000 per 30 days. A single LLC with 1 missed year could become $100,000+ in penalties within 18 months of ignored notices. Don't let it get there — file under DIIRSP now while it's still available.