- Form 5472 due date: 15 April for a calendar-year foreign-owned US LLC, filed with a pro forma Form 1120.
- Extension: file Form 7004 by the due date for six more months — to 15 October.
- Penalty: $25,000 per form for failing to file or filing incompletely, and a further $25,000 for each 30 days the failure continues more than 90 days after an IRS notice.
Who must file Form 5472
- Foreign-owned single-member LLCs (US “disregarded entities” owned by one non-US person) — every year they have a reportable transaction with the owner or a related party.
- US corporations that are at least 25% foreign-owned and have reportable transactions with a foreign related party.
For an India-based founder, the most common case is a one-person LLC formed to invoice US clients or hold a US bank account.
What counts as a reportable transaction
- Money you put in — including the initial capital to open the bank account.
- Money you take out — distributions or withdrawals.
- Loans between you and the company, and interest.
- Payments for services, rent, royalties or goods between the company and you or your other companies.
- Formation costs paid by the owner on the company’s behalf.
Because forming and funding the LLC is itself a transaction, almost every foreign-owned LLC has to file in its first year.
How to file
- The LLC needs an EIN.
- Prepare a pro forma Form 1120 — only the identifying information is filled in, marked as a foreign-owned disregarded entity filing.
- Attach Form 5472 reporting the owner and all reportable transactions for the year.
- Submit it to the IRS in the manner set out in the current Form 5472 instructions (these returns are generally faxed or mailed, not e-filed through standard software).
Deadline
Penalties
The penalty for failing to file, filing late or filing an incomplete Form 5472 is $25,000 per form, per year. If the failure continues more than 90 days after the IRS notifies you, a further $25,000 applies for each 30-day period. Penalties apply even when the LLC owes no tax.
Records to keep
Keep bank statements, invoices, agreements and a simple ledger of every transfer between you and the LLC. The rules require records that support the return, and they make next year’s filing quick.
Starting out? Compare C-Corp vs LLC before you form, or see US company registration from India.
Frequently asked questions
Do I need to file Form 5472 if my LLC had no income?
When is Form 5472 due?
What is the penalty for not filing Form 5472?
Does a US C-Corp owned by Indians file Form 5472?
Please note: this guide is general information based on the rules as they stood on the review date above. Regulations and RBI/CBDT procedures change often — please get advice on your specific facts before acting.