Short answer
A foreign-owned single-member LLC files Form 5472 attached to a pro forma Form 1120. Here is what goes where:
1. Pro forma 1120: Write "Foreign-owned U.S. DE" across the top. Fill in only the LLC's name and address, item B (EIN) and item E (initial/final return, name/address change). Leave everything else blank.
2. Form 5472, Part I: Your LLC's details. Check line 3 (foreign-owned U.S. disregarded entity).
3. Part II: You, the foreign owner. Use a reference ID number if you don't have an SSN or ITIN, and add your foreign tax ID if you have one.
4. Part III: You again, as the related party. All filers complete it.
5. Part IV: Money transactions with you, such as loans, services, rents or sales.
6. Part V: Formation costs, contributions and distributions, described on an attached statement.
7. Part VII: Additional questions every filer answers (skip lines 43a and 43b).
File by fax (855-887-7737) or mail to the IRS in Ogden. E-filing isn't allowed for foreign-owned disregarded entities. The deadline is April 15 for calendar-year LLCs, or October 15 with Form 7004. Missing it can cost $25,000.
This walkthrough follows the current Form 5472 (Rev. December 2023) and its instructions (Rev. December 2024). It's built for the most common case: a single-member LLC owned by one non-U.S. individual with no other related parties. We use schematic examples only, never a real filled-in form. If you first want the basics, start with what Form 5472 is and who needs to file it.
Who This Applies To
You're in the right place if all of these are true:
- Your company is a U.S. LLC with one owner
- The owner is a foreign person (not a U.S. citizen or U.S. tax resident)
- The LLC has not elected to be taxed as a corporation
- During the year, there was at least one reportable transaction between the LLC and its owner. Examples: you put money in, took money out, or paid an LLC expense personally.
For Form 5472 purposes only, the IRS treats this disregarded LLC as a corporation, so it files even if it owes no tax.
If you had no reportable transactions at all, the instructions say no Form 5472 is required. In practice that's rare: paying the state filing fee or registered agent from your own pocket usually counts.
What the Pro Forma 1120 Is and Why You File It
A foreign-owned disregarded entity can't send Form 5472 on its own. It attaches it to a pro forma Form 1120, the corporate income tax return used as a cover sheet. You don't calculate income or tax on it.
The pro forma 1120: which boxes you actually fill
Where on Form 1120 | What to enter |
|---|---|
Top margin | Write "Foreign-owned U.S. DE" |
Tax year line | Your tax year (for most, the calendar year) |
Name and address | The LLC's legal name and address |
Item B: Employer identification number | The LLC's EIN |
Item E: Check if | (1) Initial return, (2) Final return, (3) Name change or (4) Address change, if any apply |
Everything else (items A, C, D, income, deductions, tax, Schedules) | Leave blank |
Signature | Signed by the owner or an authorized person |
Form 5472 Part I: Reporting Corporation
The "reporting corporation" is your LLC.
Line | Label (short) | What a typical single-member LLC enters |
|---|---|---|
1a | Name and address of reporting corporation | The LLC's legal name and address |
1b | Employer identification number | The LLC's EIN |
1c | Total assets | The LLC's total assets at year-end |
1d | Principal business activity | A short description, e.g. "Software development services" |
1e | Principal business activity code | The matching code from the Form 1120 instructions |
1f | Total value of gross payments made or received reported on this Form 5472 | The total of all amounts in Parts IV and V on this form |
1g | Total number of Forms 5472 filed for the tax year | Usually 1 |
1h | Total value of gross payments on all Forms 5472 | Same as 1f if you file one form |
1i | Consolidated filing | Usually not checked |
1j | Initial year of filing | Check it if this is the LLC's first Form 5472 |
1k | Number of Parts VIII attached | Usually 0 |
1l | Country of incorporation | United States |
1m | Date of incorporation | The formation date on your state filing |
1n | Country(ies) where the reporting corporation files an income tax return as a resident | Typically none. Ask your CPA how to complete it |
1o | Principal country(ies) where business is conducted | Where the business is actually run, e.g. your country of residence |
Line 2 | 50% foreign ownership at any time | Check it (one foreign owner holds 100%) |
Line 3 | Foreign-owned U.S. disregarded entity | Check it |
Part II: 25% Foreign Shareholder
For a foreign-owned disregarded entity, the instructions say to report the foreign owner here. In a single-member LLC, that's you.
Line | Label (short) | What to enter |
|---|---|---|
4a | Name and address of direct 25% foreign shareholder | Your full name and home address |
4b(1) | U.S. identifying number, if any | Your SSN or ITIN, only if you have one |
4b(2) | Reference ID number | Required if 4b(1) is blank (see below) |
4b(3) | Foreign taxpayer identification number (FTIN), if any | Your tax ID from your country of residence |
4c | Principal country(ies) where business is conducted | Usually your country of residence |
4d | Country of citizenship, organization or incorporation | Your citizenship |
4e | Country(ies) where you file an income tax return as a resident | Your country of tax residence |
The reference ID number, explained
If you don't have an SSN or ITIN, you don't need to get one for this form. Instead, you create a reference ID number:
- No IRS application needed. It's established by or on behalf of the LLC.
- Format: Letters and numbers only, no spaces or special characters, up to 50 characters.
- Consistency: Use the same reference ID every year.
Part III: Related Party
Many guides skip this, but the instructions state that all filers must complete Part III, even if the related party is already listed in Part II as a 25% foreign shareholder.
Line | Label (short) | What to enter |
|---|---|---|
Heading | Foreign person / U.S. person | Check foreign person |
8a | Name and address of related party | You (same as 4a) |
8b(1)–8b(3) | U.S. ID / reference ID / FTIN | Same as Part II |
8c–8d | Principal business activity and code | Your activity, if applicable |
8e | Relationship | Typically "25% foreign shareholder" |
8f | Principal country(ies) where business is conducted | Usually your country of residence |
8g | Country(ies) where the related party files as a tax resident | Your country of tax residence |
Parts IV–VI: Reportable Transactions
This is the heart of the form. Reportable transactions with you as the owner usually fall into one of two Parts.
Part IV: Monetary transactions
Part IV covers money transactions between the LLC and the foreign related party, listed by type. Amounts are in U.S. dollars. Attach a schedule showing the exchange rates you used if any amounts were in another currency.
Amounts the LLC received | Amounts the LLC paid | |
|---|---|---|
Lines | 9–22 | 23–36 |
Loans | 17: amounts borrowed | 31: amounts loaned |
Services | 15 | 29 |
Interest | 18 | 32 |
Other | 21 | 35 |
Total | 22 | 36 |
The other lines cover sales and purchases of inventory or property, rents, royalties and intangibles. For loans, report the beginning balance and either the ending balance or the monthly average.
If you use reasonable estimates, check the box at the top of Part IV. The instructions treat an amount as a reasonable estimate if it's between 75% and 125% of the actual amount.
Part V: Transactions of a foreign-owned U.S. DE
Part V is unique to foreign-owned disregarded entities. You check the box and describe on an attached statement any other transaction not already in Part IV. The form specifically mentions amounts paid or received in connection with the formation, dissolution, acquisition and disposition of the entity, including contributions to and distributions from the entity.
A practical attached statement might look like this (schematic):
Type | Date | Amount (USD) | Description |
|---|---|---|---|
Contribution | Feb 3 | [amount] | Owner paid state formation fee and registered agent personally |
Contribution | Mar 10 | [amount] | Owner wired startup capital to LLC bank account |
Distribution | Jun 30 | [amount] | Transfer from LLC account to owner's personal account |
Contribution | Sep 14 | [amount] | Owner paid LLC software subscription with personal card |
Where does each transaction go?
Transaction | Usually reported in |
|---|---|
You wire capital into the LLC | Part V (contribution) |
You take money out of the LLC | Part V (distribution) |
You pay formation costs or an LLC expense personally | Part V (contribution), unless documented as a loan |
You lend money to the LLC (documented loan) | Part IV, line 17 |
The LLC lends money to you | Part IV, line 31 |
Your foreign company invoices the LLC for services | Part IV, line 29 (on a separate Form 5472 for that company) |
Part VI: Nonmonetary transactions
Only for nonmonetary transactions or those for less than full consideration with a foreign related party. Most small LLCs leave it blank.
Part VII: Additional Information
All filers complete Part VII. These are yes/no questions about the LLC's dealings. Per the instructions, lines 43a, 43b(1) and 43b(2) are not completed by a foreign-owned U.S. DE. Parts VIII (cost sharing arrangements) and IX (base erosion payments) normally don't apply to a small single-member LLC.
How to File: Fax vs. Mail
- Fax: 855-887-7737, at 300 DPI or higher. Keep the confirmation report showing the page count.
- Mail: Internal Revenue Service, 1973 Rulon White Blvd, M/S 6112, Attn: PIN Unit, Ogden, UT 84201. Use a trackable delivery method.
E-filing isn't allowed. The instructions say a foreign-owned U.S. DE cannot file Form 5472 electronically.
Deadline: The due date of the pro forma Form 1120, which is April 15 for calendar-year LLCs. To extend to October 15, file Form 7004 by the original due date. Write "Foreign-owned U.S. DE" across the top, and send it to the same fax number or mailing address above, not the regular Form 7004 address.
Common Mistakes That Lead to Penalties
- Not filing because the LLC had no income, or leaving out contributions and distributions. These are the most commonly missed items, and on their own they can trigger the filing requirement. They belong in Part V.
- Sending Form 5472 without the pro forma 1120, or without "Foreign-owned U.S. DE" written across the top.
- Skipping line 3 or Part III. Both are required for this type of filer.
- Sending anything to the wrong place. E-filing, the regular Form 1120 address and the regular Form 7004 address all count. Both the return and the extension go to the DE fax number or mailing address.
- Inconsistent numbers. Lines 1f and 1h should agree with Parts IV and V, and your reference ID should stay the same every year.
The penalty for failing to file Form 5472 when due and in the manner prescribed is $25,000. If the failure continues more than 90 days after IRS notice, an additional $25,000 applies for each 30-day period. See our Form 5472 late filing penalty guide for what to do if you've already missed a deadline.
How Clemta Helps
- Bookkeeping that tracks contributions and distributions all year, so the Part IV and Part V totals are ready when you need them
- Preparation and filing of the pro forma 1120 and Form 5472, including the Part V statement
Learn more about our federal tax filing service.
Conclusion
Form 5472 looks intimidating, but for a typical foreign-owned single-member LLC most of it is straightforward: the pro forma 1120 as a cover, Parts I, II, III and VII with your details, and Parts IV and V for the money that moved between you and the LLC. The real work is keeping clean records during the year.
This content is for general information only and is not tax or legal advice. Form instructions can change; check the current IRS instructions or consult a qualified tax professional before filing.
FAQ
Do I need an ITIN or SSN to fill out Form 5472?
No. If you don't have one, use a reference ID number in Part II (line 4b(2)) and Part III (line 8b(2)). You create it yourself; there's no IRS application.
Is an owner draw reported on Form 5472?
Yes. Distributions from the LLC to its owner are reportable transactions, generally described in Part V.
İlayda Şencan
Chief Executive Officer at Clemta
