Does a foreign-owned single-member US LLC have to file anything if it made no money?

Yes. Since 2017, a foreign-owned single-member LLC is treated as a domestic corporation solely for reporting purposes and must file Form 5472 attached to a pro-forma Form 1120 every year it has a reportable transaction — including the money used to form and fund it. There is no minimum-income or profit threshold; a zero-profit or dormant LLC can still owe the filing.

What is the penalty for not filing Form 5472?

The penalty is $25,000 per Form 5472 per year for failure to file a substantially complete form on time. It applies even if the LLC owes no income tax and even if it had no profit. If the failure continues after the IRS sends notice, an additional $25,000 accrues for each 30-day period the failure persists.

What counts as a reportable transaction on Form 5472?

Almost any exchange of value between the LLC and its foreign owner or a related party — capital contributions, loans, repayments, distributions, and amounts paid for services, rent, royalties, or the sale of property. Crucially, the funds used to form and capitalize the LLC are themselves reportable, so even a brand-new LLC that has done nothing else usually has a Form 5472 obligation in its first year.

How does a foreign-owned LLC file if it has no US tax number for the owner?

The LLC itself needs an EIN, which a foreign owner can obtain from the IRS by fax or mail using Form SS-4 without needing a US Social Security number. The pro-forma Form 1120 is filled out only with the LLC's name, address, and EIN at the top — the income and deduction lines are left blank — and Form 5472 is attached to it. The package is filed by fax or mail to the dedicated IRS unit, not e-filed with a normal corporate return.

BACK TO RESOURCES

Foreign Business Expansion

The Foreign-Owned US LLC: Form 5472, the Pro-Forma 1120, and the $25,000 Penalty

A foreign-owned single-member US LLC often owes no US income tax — but it still has a hard filing obligation. Miss the Form 5472 and pro-forma 1120, and the penalty starts at $25,000 per year, even with zero profit.

SMAART Tax Team

February 24, 2026

6 min read