Foreign-Owned LLC Filing Guide
Everything foreign owners of U.S. single-member LLCs need to know about their annual tax filing obligations.
What is a Foreign-Owned Disregarded Entity?
A foreign-owned disregarded entity is typically a single-member LLC formed in a U.S. state where the sole owner is a non-U.S. person (individual, corporation, or other entity). For federal tax purposes, this LLC is “disregarded” — meaning it is not treated as a separate entity from its owner.
Despite being disregarded for income tax purposes, these entities have specific reporting obligations under IRC Section 6038A, including the requirement to file Form 5472.
Annual Filing Requirements
1. Obtain an EIN
Every foreign-owned LLC must obtain an Employer Identification Number (EIN) from the IRS, even if it has no employees. Use our EIN formatter tool to verify your number format.
2. File Form 5472
Report all reportable transactions between the LLC and its foreign owner or related parties. This includes capital contributions, distributions, and payments for services.
3. File Pro Forma Form 1120
Attach Form 5472 to a pro forma (informational) Form 1120. The 1120 is not used to report income — it serves as the cover return.
4. Include Supporting Statement
A Federal Supporting Statement describes the nature of transactions between the LLC and its foreign owner.
5. Mail to IRS
The combined filing is mailed to the IRS service center specified in the instructions. Electronic filing is not available for pro forma returns.
Common Reportable Transactions
- Capital contributions — Money or property the foreign owner contributes to the LLC
- Distributions — Money or property the LLC distributes to the foreign owner
- Payments for services — Compensation paid to the owner or related parties
- Rent payments — If the LLC rents property from or to a related party
- Loan transactions — Loans between the LLC and its foreign owner
File Your LLC Return Now
Our free filing tool generates all three required documents (Form 5472, Pro Forma 1120, and Federal Supporting Statement) in a single guided process. Use our business code lookup to find the right NAICS code for your business activity.