Your company has IRS filings even if it owes no tax
Many non-resident founders assume that a US LLC with no US customers, or no profit, has nothing to file with the IRS. That assumption is the most expensive mistake in US company ownership. Which return your company files depends on how it is classified for tax, and several of those returns are due whether or not any tax is owed.
This service identifies the returns your company owes, prepares them from your records, and files them by the deadline, including the ones that cannot be e-filed.
Which return does your company file?
| Company type | Default federal filing | Due date (calendar year) |
|---|---|---|
| Single-member LLC owned by a non-resident | Form 5472 attached to a pro forma Form 1120 | April 15 |
| LLC with two or more members | Form 1065, with a Schedule K-1 for each member | March 15 |
| C-Corp, or LLC that elected corporate tax | Form 1120, plus Form 5472 if 25% or more is foreign-owned and reportable transactions occurred | April 15 |
Filing Form 7004 by the original due date extends the time to file, generally by six months. It does not extend the time to pay any tax that is due.
Form 5472 for foreign-owned single-member LLCs
A US LLC with one foreign owner is normally ignored for income tax, as a disregarded entity. But since 2017 the IRS treats it as a corporation for one purpose: reporting transactions between the LLC and its foreign owner or other related parties. That is what Form 5472 does.
Reportable transactions are broad. They include money you put into the LLC to set it up or fund it, money you take out, loans between you and the company, and payments for services between the LLC and your other companies. Almost every foreign-owned LLC has at least one in its first year.
The form is attached to a pro forma Form 1120, with "Foreign-owned U.S. DE" written across the top. It cannot be e-filed. The IRS instructions direct it to be faxed to a dedicated IRS number or mailed to the IRS in Ogden, Utah.
The penalty for not filing, or filing an incomplete form, is USD 25,000 per form. If the failure continues more than 90 days after the IRS notifies you, a further USD 25,000 applies for each 30-day period it continues. The penalty applies even when no tax is due.
Who this is for
- Non-resident owners of single-member LLCs formed in Wyoming, Delaware, New Mexico or any other state.
- Multi-member LLCs with foreign partners that need Form 1065 and K-1s.
- C-Corps with foreign shareholders.
- Companies that missed a year and need to catch up.
What BookMyLLC handles
- Classification check: disregarded entity, partnership or corporation, and any elections on file.
- Deadline tracking, with extension filing where you need more time.
- Preparation of Form 5472 and the pro forma Form 1120, Form 1065 and K-1s, or Form 1120.
- Identification of reportable transactions from your bank statements and records.
- Filing by fax or mail where e-filing is not accepted, with proof of submission kept.
- A filed copy for your records and your home-country accountant.
Step-by-step process
- Onboarding. We collect your formation documents, EIN letter and ownership details.
- Records. You upload bank statements for the year and answer a short questionnaire about income, expenses and transfers.
- Preparation. We prepare the return and list the reportable transactions and totals.
- Review and sign. You review the draft and sign.
- Filing. We file by the due date or extended due date, and send you the filed copy.
Documents you need
- EIN confirmation letter and formation documents.
- Owner's name, address, country of tax residence and foreign tax ID if any.
- All company bank and payment processor statements for the tax year.
- A list of transfers between you and the company, and between the company and your other businesses.
- Prior year returns, if any were filed.
Timeline
Once your records are complete, preparation typically takes one to two weeks. The closer to the deadline records arrive, the more likely we file an extension first. Extensions must be filed before the original due date to count.
Missed a year?
If earlier returns were never filed, the safest step is usually to file them as soon as possible rather than wait for an IRS notice. The IRS can waive penalties where there was reasonable cause, but outcomes depend on the facts. A CPA should advise on how to approach late filings; our CPA consultation is the place to start.
Filing for the year you form or close
The first and last years catch people out. A company formed in November still owes a return for that short year if it had reportable transactions, and a company closed in March owes a final return for its last few months, marked as final.
Common mistakes to avoid
- Not filing because there was no income. Form 5472 turns on transactions, not profit.
- Forgetting the formation-year contribution. The money you paid in to form the company is usually a reportable transaction.
- E-filing a pro forma 1120. It must be faxed or mailed as the IRS instructions describe.
- Using the wrong form after adding a member. A second member changes the default return to Form 1065.
- Ignoring state returns. Some states have their own filing requirements separate from the IRS.
We prepare and file returns from the information you provide. We are not a law firm, and this page is general information, not tax advice; your situation, including any US income tax due, should be confirmed with a CPA. Background reading: how non-US residents pay US taxes and the LLC compliance checklist. Clean books make filing faster, so consider US bookkeeping during the year.
IRS filings at a glance
| Company type | Typical return | Key point |
|---|---|---|
| Single-member LLC owned by a non-US person | Form 5472 with a pro-forma Form 1120 | Filed even if the LLC had no income; penalties apply for missing it |
| Multi-member LLC | Form 1065 and Schedule K-1 for each member | Taxed as a partnership by default |
| C-Corp | Form 1120 | Corporate tax return filed yearly |
| LLC that elected corporate treatment | Form 1120 | Follows the election it made |
Due dates move with the entity type and fiscal year. We confirm yours when we start, and file an extension before the original date if records are late.
What to gather before we start
| Item | Why we need it |
|---|---|
| Bank and payment statements | To build the income and expense picture for the year. |
| Related-party transactions | Form 5472 asks about money moving between you and the company. |
| Formation documents and EIN letter | To match the entity type and name exactly. |
| Prior returns | To keep this year consistent with the last. |
Why foreign-owned LLCs file even with no income
The IRS treats a foreign-owned single-member LLC as a corporation for the purpose of reporting related-party transactions. That means Form 5472, which reports money that moves between you and the company, accompanied by a pro-forma Form 1120. The requirement exists whether or not the LLC earned anything. The penalty for missing it is a fixed amount per form per year, so a few years of silence can grow into a large bill that has nothing to do with taxes owed.
Filing late is better than not filing. If you have missed a year, tell us. The IRS has procedures for reasonable-cause relief in some cases, though they are not guaranteed.
Dates and extensions
Return due dates depend on how the company is taxed and its fiscal year. An extension gives more time to file but not to pay any tax owed, and it must be requested before the original due date. We confirm the date for your entity at the start and book an extension if your records are not ready, so you are not left racing the deadline.
Your home country may also require you to report ownership of a foreign company or tax its income. Talk to a local adviser about that side, and book a CPA consultation if you want a US-side view.
