If a foreign individual or foreign company owns a U.S. limited liability company (LLC), the IRS generally requires the LLC to file an annual information return, even when the company had no income or no U.S. bank activity. These filings center on Form 5472, submitted together with a pro forma Form 1120. Missing these forms or filing them incorrectly can lead to significant IRS penalties. Castagnet Tax Consulting Group helps foreign-owned LLCs based in Florida, and owners located anywhere in the world, understand and meet these annual compliance requirements. Learn more about our services on our home page.

What Is Form 5472?

Form 5472 is an information return that reports transactions between a U.S. business and its foreign owners or other related parties. When the U.S. business is a single-member LLC treated as a disregarded entity for tax purposes, the IRS requires the LLC to file Form 5472 along with a pro forma Form 1120, even though the LLC itself does not otherwise owe U.S. corporate income tax on that activity.

Who Needs to File Form 5472 and Form 1120?

A foreign person or foreign entity owns 25% or more of a U.S. LLC or corporation
A foreign-owned U.S. LLC had reportable transactions with its owner during the year, such as contributions, distributions, loans, or payments
A U.S. corporation is at least 25% foreign-owned
Your business received an IRS notice referencing a missing or late Form 5472

Common Situations and Related Forms

Single-member LLCs wholly owned by a non-U.S. resident
Multi-member LLCs with one or more foreign owners
Capital contributions, intercompany loans, or distributions between the LLC and its foreign owner
Prior-year Form 5472s that were filed late or never filed
Coordination with the owner’s personal U.S. filing obligations, such as a Form 1040NR nonresident tax return, when applicable

How Castagnet Tax Consulting Group Can Help

We review your LLC’s ownership structure and prior-year filings, identify which forms apply to your situation, and prepare the pro forma Form 1120 and Form 5472 based on the information and records you provide. If you have missed a previous year’s filing, we can also help you understand your options for catching up. When the LLC’s foreign owner also has a personal U.S. filing requirement, we can help coordinate that return as well.

Our Process

Initial conversation to review your LLC’s ownership structure and filing history
Document and information request checklist
Preparation of your pro forma Form 1120 and Form 5472
Review of the draft forms with you before anything is filed
Filing with the IRS and confirmation of submission

Frequently Asked Questions

What happens if Form 5472 is filed late or not at all?

The IRS can impose substantial monetary penalties for a late or missing Form 5472, and those penalties can increase the longer the filing remains outstanding. Because penalty amounts and rules can change, we recommend confirming the current figures with us directly rather than relying on outdated information you may find online.

Does my LLC owe U.S. income tax just because it has to file Form 5472?

Not necessarily. Filing Form 5472 and the related pro forma Form 1120 is an informational requirement tied to the LLC’s foreign ownership, separate from whether the LLC has U.S.-source income that is subject to tax. We can help you understand which parts of your situation involve informational reporting versus taxable income.

I already missed a filing deadline. Can you still help?

Yes. We regularly help LLC owners who are behind on prior-year Form 5472 filings get their filings current. The sooner you reach out, the more options are typically available.

Related Services

If you also need an ITIN for a U.S. owner, see our ITIN application page. If you are still forming your LLC, visit our LLC formation and business setup page, and for annual entity tax filings, see business tax preparation.

Contact Castagnet Tax Consulting Group

If you own a foreign-owned U.S. LLC and need help with Form 5472 and Form 1120, contact Castagnet Tax Consulting Group. Our office serves clients by appointment at 12250 Menta Street #106 A, Orlando, FL 32837, as well as clients located outside the United States. Call us at 407-868-5776 or email info@castagnettax.com to schedule a consultation.