If you are a non-US person owning a US single member LLC — there are mandatory IRS filings most foreign owners have never heard of. Missing them does not come with a warning. It comes with a penalty.
The IRS imposes an automatic $25,000 penalty per violation for missing Form 5472 — regardless of whether your LLC had any income, revenue, or activity.
Regardless of your country of residence, the nature of your business, or whether your LLC has made a single dollar — if you fit any of these profiles, US federal filing obligations apply.
You are a non-US person — from the UK, India, Costa Rica, Germany, or anywhere outside the US — who owns 100% of a US single member LLC.
Your non-US company (a UK Ltd, Indian Pvt Ltd, or any foreign entity) owns a US LLC. The filing obligations apply at the entity level.
You sell on Amazon USA, Shopify, or through a US-based 3PL — with inventory or operations physically present in the United States.
Your LLC has a leased office, warehouse, or employees in the United States — which may trigger additional state-level obligations alongside federal filings.
Your LLC is brand new, dormant, or has no revenue yet. If money moved in or out — even to pay formation fees — Form 5472 is required.
You regularly transfer profits from your US LLC back to your foreign company or personal account. Every transfer is a reportable transaction.
Every foreign-owned single member LLC in the US is required to file these two forms together — annually. Here is what each one covers and why it exists.
Form 5472 is the IRS's mechanism to track every financial transaction between your US LLC and its foreign owner. It was designed specifically to prevent tax evasion through foreign-owned US entities.
Every capital contribution, distribution, loan, service payment, or asset transfer between you and your LLC must be reported here — with precise dollar amounts and transaction descriptions.
Penalty: $25,000 per Form 5472 not filed or filed late. An additional $25,000 per 30-day period if the failure continues after IRS notification. No income threshold. No exceptions.
A foreign-owned single member LLC is treated as a disregarded entity — but the IRS still requires a Pro Forma Form 1120 to be prepared and filed alongside Form 5472 as the "jacket" return.
This is not a full corporate tax return. It is a pro forma shell that provides the IRS with entity-level identification — but it must be complete, accurate, and filed on time.
Important: Unlike most US tax filings, Pro Forma 1120 and Form 5472 are not e-filed. They are mailed or faxed directly to the IRS — making accurate preparation and timely submission critical.
There is a critical distinction the IRS makes that most foreign LLC owners are unaware of — and it determines whether your filing obligations are simple or significantly more complex.
If your LLC is considered to be Engaged in Trade or Business in the US (ETBUS), your income becomes Effectively Connected Income (ECI) — taxable in the US at graduated rates, significantly expanding your compliance obligations beyond the standard Form 5472 filing.
Selling on Amazon FBA, having a leased US office, storing inventory in US warehouses, or having employees in the US are all strong indicators of ETBUS — which significantly expands your US tax and compliance obligations. Contact us for a full assessment of your specific structure.
Your LLC may have ECI if any of these apply:
Amazon FBA selling — inventory physically stored in US fulfillment warehouses
US office or lease — any leased space used for business operations
US employees — any individuals performing services in the US on behalf of your LLC
Active US customers — regularly selling products or services to US-based buyers
US bank account activity — receiving proceeds and managing funds through a US account
If ECI applies — additional US tax obligations may arise. Our team will assess the exact requirements for your structure.
Per Form 5472 not filed, filed late, or filed incompletely — per year. The IRS does not send reminders. The penalty notice arrives after the deadline has passed.
Due April 15 for calendar year filers. This is the standard annual deadline for all foreign-owned single member LLCs.
No Income ThresholdAn automatic 6-month extension is available by filing Form 7004 by April 15. The extension must be filed on time — late extension requests are not accepted.
Must File Form 7004Tell us about your structure and we will confirm exactly what filings apply to you — within 1 business day. No commitment required.
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