What is Form 5472 and does a foreign-owned US LLC have to file it?
Form 5472 is an IRS information return that every foreign-owned single-member US LLC must file each year, together with a pro-forma Form 1120, even if the company earned nothing. It does not calculate tax by itself, but missing or filing it late carries a penalty of 25,000 dollars.
Who it applies to
A US LLC that is disregarded for tax and owned by a non-US person is a 'reportable corporation' for this rule. That covers the typical single-member Wyoming or Delaware LLC owned by one foreign founder. The filing is required regardless of revenue, profit, or activity.
The deadline and the penalty
Form 5472 is attached to a pro-forma Form 1120 and filed by mail or fax, generally by April 15 for a calendar-year LLC. The automatic penalty for failing to file, filing late, or filing an incomplete return is 25,000 dollars, which is why this is the single most important compliance step for a foreign-owned LLC.
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