If you live outside the United States and own a single-member US LLC, there is one IRS filing you cannot afford to miss: Form 5472, filed with a pro forma Form 1120. It applies even if your LLC made no money, paid no US tax, and barely had any activity. Miss it, and the IRS can charge $25,000 per form, per year.
This guide explains who has to file, what goes on the form, the deadline, how to submit it, and the mistakes we see most often from non-resident founders.
Why a "tax-free" LLC still has to file
A single-member LLC owned by one person is a disregarded entity by default. For income tax, the IRS ignores the LLC and looks straight through to the owner. For many non-residents with no US-source effectively connected income, that means no US income tax.
But "no tax" does not mean "no filing". Since tax years beginning in 2017, Treasury regulations under section 6038A treat a US disregarded entity wholly owned by a foreign person as a corporation for one limited purpose: reporting transactions with its owner and other related parties. That report is Form 5472.
Who has to file Form 5472
You need to file if any of these describe your business:
- A foreign-owned US disregarded entity: for example, a Wyoming, Delaware or New Mexico single-member LLC owned by an individual or company outside the US.
- A US corporation that is at least 25% foreign-owned.
- A foreign corporation carrying on a trade or business in the US.
This article focuses on the first group, which is where most of our clients from Pakistan, the UK, the UAE and elsewhere sit.
What counts as a "reportable transaction"
Form 5472 is about money and property moving between the LLC and its foreign owner (or other related parties). Common examples:
- Money you put into the LLC (capital contributions), including the formation fees you paid personally
- Money you take out (distributions or owner draws)
- LLC expenses you paid from your personal or foreign bank account
- Loans between you and the LLC, and any interest
- Sales, purchases, services, rents or royalties between the LLC and a related company
In practice, almost every foreign-owned LLC has at least one reportable transaction in its first year, because someone had to pay to form it.
What you actually file
The filing package for a foreign-owned single-member LLC is:
- A pro forma Form 1120. This is not a full corporate tax return. You complete only the LLC's name and address, and items B and E on page 1, and write "Foreign-owned U.S. DE" across the top. No income or tax calculation.
- Form 5472 attached to it, with Part I (the LLC), Part II (the 25% foreign shareholder/owner), Part III (related party, if any) and Part V (the owner–LLC transactions for the year), plus a short supporting statement.
You need an EIN for the LLC. The IRS also asks for the owner's foreign tax identification number, so have your home-country tax number (for example, your NTN in Pakistan or UTR in the UK) ready.
Deadline and extension
The LLC uses its owner's US tax year, or the calendar year if the owner has no US filing obligation. For most clients, that means:
- Due date: 15 April for the previous calendar year. Your 2026 activity is reported by 15 April 2027.
- Extension: file Form 7004 by the original due date to get six more months (to 15 October). Write "Foreign-owned U.S. DE" across the top of the 7004 too, and send it to the same special fax number or address below, not the normal 7004 address.
How to submit it
Foreign-owned disregarded entities cannot e-file this package. The IRS instructions allow two routes:
- Fax (300 DPI or higher) to 855-887-7737, or
- Mail to: Internal Revenue Service, 1973 Rulon White Blvd, M/S 6112, Attn: PIN Unit, Ogden, UT 84201
Fax is usually faster and gives you a transmission confirmation. Keep that confirmation with your records.
The penalty: $25,000 and up
Under section 6038A, failing to file a complete and timely Form 5472, or failing to keep the required records, carries a $25,000 penalty per form, per tax year. If the IRS sends a notice and the failure continues for more than 90 days, an extra $25,000 is added for each 30-day period it stays unresolved.
That is a serious amount for an LLC that may owe zero income tax, which is why this filing deserves a place on your calendar from day one.
Five mistakes we see most often
- Thinking "no income" means "no filing". Zero revenue does not remove the obligation if there were owner transactions.
- Filing the wrong way. Trying to e-file, or posting to the normal Form 1120 address instead of the dedicated Ogden PIN Unit address or fax.
- Leaving Part V incomplete. Contributions and distributions must be reported, including expenses you paid personally on the LLC's behalf.
- Missing the extension rules. A Form 7004 sent to the standard address, or without "Foreign-owned U.S. DE" on top, may not protect you.
- No books. You are required to keep records that support the form. Without monthly bookkeeping, owners often guess figures at year-end, and that's where errors start.
What about BOI reporting with FinCEN?
Many LLC owners still ask about the Beneficial Ownership Information (BOI) report. Under FinCEN's final rule of 11 August 2026 (effective 14 August 2026), companies formed in the United States are exempt from BOI reporting. BOI now applies only to certain foreign-formed companies registered to do business in the US. So a US-formed LLC with a foreign owner generally does not file BOI, but it still files Form 5472.
Don't forget the state side
Form 5472 is a federal filing. Your LLC's state of formation may have its own annual report, franchise tax or registered agent renewal, each with its own deadline. Wyoming, Delaware and other popular states all handle this differently, so check your state's requirements as well.
A simple yearly checklist
- Keep LLC and personal money separate, with a US business bank account
- Record every transfer between you and the LLC as it happens
- Close the books in January and total contributions and distributions
- File Form 7004 by 15 April if you need more time
- Fax the pro forma 1120 and Form 5472, and save the confirmation
- Renew state filings and your registered agent on time
How Fintac can help
Fintac Consultants supports non-resident founders with US LLCs from start to finish: LLC formation, EIN and ITIN, monthly bookkeeping, and the annual Form 5472 and pro forma 1120 filing. US tax filings are handled by our team, including a PTIN holder, working with our US partner firm.
Overseas clients are handled fully online. We agree the fee before work starts, with no hidden charges, and we reply the same working day.
Book a free 20-minute call through our US services page or message us on WhatsApp at +92 334 346 8222. US office: +1 (401) 410-7676 · info@fintacconsultants.com
This article is general information, not tax or legal advice for your specific situation. IRS rules and forms change; we check the current instructions before every filing.