# Form 5472 & Pro Forma 1120 for Foreign-Owned LLCs

> A US single-member LLC owned by a foreign person is treated as a corporation for Form 5472 purposes and must file Form 5472 attached to a pro forma Form 1120 every year, reporting transactions with its foreign owner and related parties — including capital contributions, loans and distributions — even if the LLC had no income. It is due on 15 April (extendable with Form 7004), and the penalty for not filing is $25,000 per form.

Practice: US Tax Services — https://www.industax.com/services/us-tax/

Most foreign founders don't learn about Form 5472 until a penalty notice arrives. The return isn't e-filed in the usual way, so a filing process and proof of submission matter.

We prepare the pro forma 1120 and 5472 each year from your bank records, keep the required books, and file extensions where needed.

## Key facts

| Item | Detail |
| --- | --- |
| Who | Foreign-owned US single-member LLCs |
| Form | 5472 + pro forma 1120 |
| Due | 15 April (Form 7004 extension available) |
| Penalty | $25,000 per form per year |
| Reportable | Contributions, loans, distributions, payments with related parties |

## Who needs this

- Indian founders with US LLCs
- Freelancers who formed US LLCs for payments
- E-commerce sellers with US LLCs

## What's included

- Transaction analysis
- 5472 and pro forma 1120
- Extensions
- Recordkeeping

## Documents

- LLC formation documents and EIN
- US bank statements
- Owner details

## Process

1. **Collect** — Bank and owner transactions gathered.
2. **Prepare** — 5472 and pro forma 1120 drafted.
3. **File** — Submitted with proof by the deadline.

Work that legally requires a US enrolled agent or CPA is signed by a partner professional; Indus Tax coordinates it.

## FAQs

### Do I need Form 5472 if my LLC made no money?

Yes. Forming and funding the LLC (a capital contribution) is itself a reportable transaction, so a filing is usually needed from the first year.

### Can the $25,000 penalty be reduced?

Penalty abatement can be requested by showing reasonable cause, but it isn't guaranteed. Filing late but before the IRS contacts you improves the chances.

### Does Form 5472 mean the LLC owes US tax?

Not by itself. It is an information return. Whether US tax is owed depends on whether the LLC has US effectively connected income.

## Official sources

- IRS — Internal Revenue Service: https://www.irs.gov/

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Canonical page: https://www.industax.com/services/us-tax/form-5472-foreign-owned-llc
Publisher: Indus Tax — CA-led tax and compliance firm (https://www.industax.com). Contact: info@industax.com, 9059139258.
This is general information, not advice for your specific facts.