Avoid common filing mistakes. GatewayBase checks missing fields and creates your 1120 + 5472 packet.
Form 5472 mistakes are common because foreign-owned US LLC owners often learn about the filing after the LLC is already formed.
The biggest risk is assuming that no income means no filing. Another common risk is missing owner transactions such as startup costs and capital contributions.
This article is general education, not tax advice. GatewayBase provides document preparation and filing workflow software. We are not a law firm, CPA firm, or tax advisor.
Mistake 1: Not getting an EIN first
Your LLC needs an EIN before you can complete the Form 1120 + 5472 filing. If you formed the LLC but never applied for an EIN, fix that first.
Mistake 2: Ignoring no-income years
No income does not always mean no filing. If the owner paid costs, funded the LLC, loaned money, or took money out, there may still be reportable transactions.
Mistake 3: Missing capital contributions
Money the foreign owner puts into the LLC is easy to overlook. It may be recorded as a bank deposit, card payment, or payment made before the LLC had its own account.
Mistake 4: Using the wrong tax year
A calendar-year filing usually covers January 1 through December 31. If your LLC was formed during the year, you still need to use the correct tax-year dates and records.
Mistake 5: No proof of filing
Keep the final packet and proof that it was sent. GatewayBase stores filing documents and fax confirmation proof in your file vault when you use the supported workflow.
Mistake 6: Using this path for the wrong company type
GatewayBase's current 1120 + 5472 workflow is designed for the supported foreign-owned US disregarded-entity path, typically a single-member LLC that has not elected corporate tax treatment.
Multi-member LLCs, corporations, payroll cases, and complex ownership structures may need professional advice.
FAQ
What is the most common Form 5472 mistake?
For foreign-owned LLCs, the most common mistake is assuming that no revenue means no filing.
Can an incomplete Form 5472 be a problem?
Yes. IRS instructions say a substantially incomplete Form 5472 can be treated as a failure to file.
Does GatewayBase replace a CPA?
No. GatewayBase supports a guided filing workflow for supported cases. Complex cases need professional advice.
Where should I start?
Start with the GatewayBase 1120 + 5472 workflow if your LLC matches the supported path.