If you own a foreign-owned single-member US LLC, IRS Form 5472 is not optional.
Even if your LLC:
- had zero revenue
- had no US activity
- was just holding a Stripe account
You are still required to file Form 5472 every year.
Failing to do so can result in a minimum $25,000 IRS penalty.
Need to file Form 5472? Generate IRS-ready forms in about 10 minutes.
Get startedWhat is Form 5472?
Form 5472 is an IRS information return used to report transactions between a US entity and its foreign owner.
Foreign-owned single-member LLCs are treated as disregarded entities — but that does not exempt them from reporting.
This is where many founders get caught.
Who must file Form 5472?
You must file if all of the following apply:
- Your LLC is registered in the US
- It has one owner
- The owner is not a US person
There are no income thresholds. Zero activity does not remove the requirement.
What is the penalty for missing Form 5472?
The IRS penalty for:
- not filing
- filing late
- filing incorrectly
starts at $25,000 per year.
The penalty can increase if the IRS sends notices that are ignored.
This is one of the most severe penalties applied to small business compliance filings.
Why do people miss this filing?
Most foreign founders miss Form 5472 because:
- it's not part of a normal tax return
- IRS documentation is hard to understand
- many online LLC guides never mention it
- CPAs often assume someone else handled it
Unfortunately, the IRS does not accept "I wasn't informed" as a defense.
How to file Form 5472 correctly
You have two realistic options:
- Hire a CPA (often $500–$1,500 per filing)
- Use a guided filing process that generates IRS-ready forms
The important part is that the forms are:
- complete
- accurate
- filed on time
Don't wait until the penalty letter arrives
If you're unsure whether your LLC needs to file Form 5472, it's worth confirming now.
Waiting doesn't reduce the risk — it increases it.