Foreign-Owned LLC Compliance

Form 5472 filed correctly every year, whether or not your LLC owes any tax.

Annual compliance for non-U.S. residents who own a U.S. LLC, including Form 5472 preparation, EIN registration, and penalty abatement for missed prior-year filings.

Form 5472, Compliance
Foreign-Owned LLC Compliance

Form 5472 filed correctly, every year, whether or not your LLC owes any tax

If you are a non-U.S. resident who owns 100% of a U.S. LLC, the IRS requires Form 5472 alongside a pro-forma Form 1120 every single year, regardless of whether your LLC has revenue or owes any tax. This is one of the most misunderstood compliance requirements in U.S. tax law, and the penalty for getting it wrong starts at $25,000 per form, per year.

Hasco Tax Advisors handles annual Form 5472 compliance, EIN applications for foreign founders, and ongoing bookkeeping for foreign-owned LLCs, so nothing falls through the cracks simply because you are not physically based in the United States.

Form 5472 Preparation

Annual filing prepared correctly alongside the required pro-forma Form 1120, even for LLCs with zero revenue.

EIN for Foreign Founders

The specific EIN application process required for non-U.S. residents, avoiding the multi-month delays that come from filing incorrectly.

Penalty Abatement

If a prior-year filing was missed, we handle reasonable-cause penalty abatement requests rather than waiting for an IRS notice to arrive.

Ongoing Bookkeeping

Monthly bookkeeping that keeps the "reportable transaction" records Form 5472 requires organized throughout the year, not reconstructed in April.

What Actually Triggers Penalties

The mistake nearly every foreign founder makes, and how to avoid it

"No income tax owed" does not mean nothing to file

Form 5472 is not an income tax filing, it is an information return. The IRS treats it as a reporting obligation completely separate from whether your LLC owes any tax at all. The trigger is not profit, it is the existence of "reportable transactions" between the LLC and its foreign owner, which can include something as simple as the owner funding the LLC's bank account.

Three components that all need to line up

  • An active EIN for the LLC
  • A correctly completed Form 5472 disclosing related-party transactions
  • A pro-forma Form 1120 used as a cover document

Missing any one of these three is treated the same as missing all of them by the IRS.

If you have already missed a prior year

Filing late voluntarily with a reasonable-cause penalty abatement request is almost always the better path than waiting for an IRS notice. The deadline is April 15 for calendar-year filers, with extensions available if requested before that date.

Flat annual fee, filed before the deadline every year
Form 5472 compliance is quoted as a flat annual fee, with reminders sent well ahead of the April 15 deadline so nothing is left to the last minute.
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How It Works

Handled remotely, wherever in the world you are based

1
Free Consultation
We confirm your LLC's filing history and identify whether any prior years still need to be addressed.
2
Records Gathered
Reportable transactions between you and the LLC are documented, funding, distributions, and any related-party activity.
3
Form 5472 Prepared
Your Form 5472 and pro-forma Form 1120 are prepared together and reviewed before filing.
4
Filed & Confirmed
Your filing is submitted before the deadline, with confirmation sent once it is accepted.
Frequently Asked Questions

Foreign-owned LLC compliance, answered directly

Yes. Form 5472 is an information return, not an income tax filing. It is required annually for any foreign-owned single-member LLC as long as reportable transactions exist between the LLC and its owner, which includes basic funding of the LLC's bank account.
The penalty starts at $25,000 per form, per year, regardless of whether any tax was owed. If a deadline has already been missed, filing late voluntarily with a reasonable-cause penalty abatement request is almost always the better path than waiting for an IRS notice.
Yes. Non-U.S. residents can obtain an EIN without an SSN through a specific application process that does not go through the IRS's standard online system. This process takes longer than a typical EIN application, so it is worth starting early.
This depends on your specific situation, including whether you have U.S.-source income beyond the LLC and your residency status. We review this as part of your consultation to confirm exactly what is and is not required.
Yes. Hasco Tax Advisors operates entirely remotely and regularly works with foreign LLC owners across many countries. Documents are exchanged securely online, with no in-person meeting required at any stage.
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