Need to file this year? Start your Form 1120 and 5472 filing with GatewayBase. We turn the IRS forms into simple questions and give you a ready-to-sign packet.
If you own a US LLC from outside the United States, you may have heard that you need to file Form 1120 and Form 5472 every year. This is true for most foreign-owned US LLCs — even when your company made little or no money, and even when you owe no US income tax.
Some people search for "Form 5473" online. The correct IRS form is Form 5472, not 5473. Form 5472 is filed together with a simplified Form 1120 called a "pro forma" Form 1120. This guide explains what both forms are, why they exist, who must file, and how the process works.
This article is for education only. It is not legal or tax advice. If your situation is complex, talk to a qualified tax professional.
What is Form 5472?
Form 5472 is an IRS information return. Its full name is "Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business." That name is long, but the idea is simple: the IRS wants to know about money and business dealings between your US company and foreign related parties.
A "related party" is usually you, the foreign owner, or another person or company connected to you or your LLC. Examples of reportable transactions include:
- Money you put into the LLC (capital contributions)
- Loans between you and the LLC
- Payments for services, rent, or management fees
- Transfers of property or assets
- Distributions or withdrawals from the LLC
Form 5472 does not usually mean you owe US income tax. It is mainly a disclosure form. The IRS uses it to track cross-border activity involving US companies owned by foreign persons.
What is Form 1120 (pro forma) for disregarded entities?
Form 1120 is normally the US corporate income tax return. But for most single-member foreign-owned US LLCs, you do not file a full Form 1120 with income, deductions, and tax calculations.
Instead, you file a "pro forma" Form 1120. Think of it as a cover page. You fill in basic company details — legal name, US address, Employer Identification Number (EIN), and a few other fields — and attach Form 5472 to it. Most of the Form 1120 stays blank.
Why does the IRS require this? Form 5472 must be attached to a Form 1120 filing. Since your LLC is treated as a "disregarded entity" for US tax (see below), the pro forma 1120 is the wrapper that lets you submit Form 5472 correctly.
Why must foreign LLC owners file Form 1120 and 5472?
Most single-member US LLCs owned by one foreign person are treated as a "disregarded entity" for US federal tax. That means the IRS does not tax the LLC as a separate company. Instead, the owner reports income on their own tax return in their home country (in most cases).
Even so, Congress created a special rule: when a US LLC is at least 25% foreign-owned, it must file Form 5472 every year. Because almost all foreign-owned LLCs meet this 25% rule, this filing applies to nearly every foreign owner of a US LLC.
The IRS uses these forms to prevent hidden transfers of money and assets between US companies and foreign owners. Filing is required whether or not your LLC had profits, losses, or any business activity during the year.
Who has to file Form 1120 and 5472?
You likely need to file if all of these apply to you:
- You own a US LLC (formed in a state like Wyoming, Delaware, New Mexico, or another state)
- At least 25% of the LLC is owned by a foreign person or foreign company — which covers essentially all foreign-owned LLCs
- The LLC is treated as a disregarded entity or as a US corporation for tax purposes (most single-member foreign-owned LLCs are disregarded entities)
- There were reportable transactions with a foreign related party during the tax year — even a single capital contribution counts
Common situations that require filing:
- You formed a US LLC and transferred money into it to open a bank account
- You paid yourself or your foreign company for services related to the LLC
- You took money out of the LLC or moved assets between the LLC and a foreign related party
- Your LLC had no revenue but you still put in startup capital
Multi-member LLCs with foreign partners may have different rules. If your LLC has more than one owner, check with a tax professional about your specific situation.
When is the filing deadline?
Form 5472 (with the pro forma Form 1120) is due each year with the regular US tax filing season. For most LLCs, the deadline is April 15 for the previous calendar year. For example, your 2025 tax year filing is generally due by April 15, 2026.
If you need more time, you can file for an extension. An extension gives you extra months to submit, but it is not an extension to pay any tax that may be owed. For most disregarded-entity LLCs with no US tax due, the extension mainly gives you more time to complete the information return.
This is an annual filing. You must file every year the LLC exists and has reportable transactions — not just the first year.
What happens if you do not file? ($25,000 penalty)
The penalty for not filing Form 5472 is severe. The IRS can charge $25,000 per form per year for failure to file. If you continue not to file after the IRS sends you a notice, additional penalties can apply.
This penalty applies even when your LLC had no income and owes no US tax. Many foreign owners are surprised by this because they assume that "no tax due" means "no filing needed." That is not the case for Form 5472.
Filing on time — or getting an extension — is the best way to avoid this risk. GatewayBase can help you prepare and submit your Form 1120 and 5472 filing before the deadline.
What information do you need before filing?
Gather these details before you start:
- LLC legal name and US address — exactly as on your state formation documents
- EIN (Employer Identification Number) — your LLC must have an EIN before you can file. If you do not have one yet, apply for an EIN first.
- Tax year — usually the calendar year (January 1 to December 31)
- Foreign owner details — name, foreign address, country of tax residency, and foreign tax ID (if you have one)
- Related party information — details about the foreign person or company you had transactions with (often this is you, the owner)
- Transaction amounts — how much money moved between the LLC and foreign related parties during the year (contributions, loans, payments, distributions)
- Business activity description — a short description of what your LLC does
Keep bank statements and records of any money you sent to or received from the LLC. You will need accurate numbers for Form 5472 Part IV (monetary transactions).
How filing works: step by step
Here is the general process for filing Form 1120 and 5472 as a foreign LLC owner:
- Make sure your LLC has an EIN. You cannot file without it. Apply using Form SS-4 if you do not have one yet.
- Identify your reportable transactions. Review bank records for the tax year. List any money or assets that moved between the LLC and foreign related parties.
- Complete Form 5472. This form has several parts: owner information (Part I), related party details (Part II), summary questions (Part III), and monetary transaction amounts (Part IV and beyond).
- Complete the pro forma Form 1120. Fill in the company name, address, EIN, and other basic fields. Leave income and tax sections blank or mark them as not applicable.
- Attach Form 5472 to Form 1120. The 5472 is submitted as part of the 1120 filing package.
- Sign and submit to the IRS. The filing is typically sent by fax or mail. Keep proof that you sent it.
- Save copies. Store your filed forms and confirmation for your records. You will need them for next year and for any bank or compliance requests.
The forms are long and use tax language that confuses many foreign owners. That is why GatewayBase turns the process into simple questions and builds your ready-to-sign packet for you. Start your 1120 and 5472 filing when you are ready.
Frequently asked questions about Form 1120 and 5472 filing
Is Form 5473 the same as Form 5472?
No. There is no Form 5473 for this purpose. The correct form is Form 5472, filed with a pro forma Form 1120. If you found "5473" in a search result or forum post, it was likely a typo or confusion. Always use Form 5472.
Do I need to file if my LLC had no income?
Yes, in most cases. If you had any reportable transaction with a foreign related party — even putting in startup money to open a bank account — you likely must file Form 5472. No income does not mean no filing.
Do I need an EIN before I can file Form 5472?
Yes. Your LLC needs an EIN (Employer Identification Number) from the IRS before you can complete Form 1120 or Form 5472. If you do not have one, apply for an EIN first, then do your yearly 1120/5472 filing.
Does filing Form 5472 mean I owe US taxes?
Not usually. For most foreign-owned single-member LLCs treated as disregarded entities, Form 5472 is an information return. It tells the IRS about cross-border transactions. It does not automatically create a US tax bill. Your US tax situation depends on your specific facts, so ask a tax professional if you are unsure.
What is the penalty for not filing Form 5472?
The IRS can assess a penalty of $25,000 per form per year for failure to file Form 5472. Additional penalties may apply if the failure continues after the IRS notifies you. This is one of the largest penalties for a non-income-tax form.
Can GatewayBase file Form 1120 and 5472 for me?
Yes. GatewayBase guides you through simple questions, maps your answers to Form 1120 and Form 5472, and gives you a ready-to-sign filing packet. We built the service for foreign owners who are not US tax experts. You can choose a one-time filing or a yearly plan so you do not forget next year.
File your Form 1120 and 5472 the easy way
Form 1120 and 5472 filing is a yearly requirement for most foreign-owned US LLCs. Missing it can cost $25,000 per year in penalties — even when you owe no US tax. The forms are confusing, but the underlying idea is straightforward: tell the IRS about transactions between your US company and foreign related parties.
GatewayBase makes this process simple. We ask plain-language questions, check for missing fields, and build your complete Form 1120 and 5472 filing packet. No tax form experience needed.
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