Tax · Accounting · Advisory
Tax Filing for Foreign-Owned U.S. LLCs and Corporations
Foreign owners of U.S. LLCs and corporations face a stack of IRS filings, from Form 5472 to the owner's Form 1040-NR, with steep penalties for missing them. As an Enrolled Agent and Certifying Acceptance Agent, we handle the whole bundle.
Foreign-Owned U.S. Businesses
What a Foreign Owner of a U.S. Company Owes the IRS
Owning a U.S. LLC or corporation from abroad opens real opportunity, and a set of U.S. filing obligations that are easy to miss and expensive to ignore. The rules are not really about how much the business earned. They are about disclosure: telling the IRS who owns the company, what money moved between the company and its owner, and what foreign accounts and income sit behind it.
The penalties are what make this urgent. A single missed information return can cost far more than a year of professional help, and the IRS assesses many of these penalties automatically. As an IRS Enrolled Agent and Certifying Acceptance Agent, we handle the full bundle for foreign owners, from the EIN and ITIN through the annual returns, so nothing is filed late and nothing is left out.
The Filings
The Returns a Foreign-Owned U.S. Business May Owe
Which of these you owe depends on how your company is structured and where the money flows. Each links to a detailed guide, and we confirm your exact list before we file.
- Form 5472 and Pro Forma 1120
A U.S. corporation that is at least 25% foreign-owned, and any foreign-owned U.S. single-member LLC treated as a disregarded entity, must file Form 5472 to report transactions with its foreign owner. A disregarded-entity LLC files it attached to a pro forma Form 1120. A late or incomplete Form 5472 carries a penalty that starts at $25,000.
- An EIN Without an SSN
You do not need a Social Security Number to get an Employer Identification Number. We apply for your EIN on Form SS-4 as a responsible party who has no SSN, so your U.S. entity can open a bank account, hire, and file.
- Form 5471
A U.S. person who is an officer, director, or shareholder in certain foreign corporations files Form 5471 to report that ownership. It is the mirror image of Form 5472: 5472 covers foreign owners of U.S. companies, while 5471 covers U.S. owners of foreign companies. Failure to file carries a penalty that starts at $10,000 per foreign corporation, per year.
- Form 1040-NR
A foreign owner with U.S.-source income or a U.S. filing obligation files Form 1040-NR, the nonresident income tax return, to report that income and pay any tax due. We prepare it alongside your entity's filings so the numbers agree.
- FBAR and Form 8938
Foreign owners and their U.S. entities can also carry foreign-account reporting. When your foreign bank and financial accounts together exceed $10,000 at any time in the year, you file an FBAR. A separate Form 8938 for specified foreign financial assets may also apply, depending on the type and value of what you hold.
- Form W-8BEN and W-8BEN-E
When a U.S. payer sends income to a foreign person or entity, they ask for a W-8 form to document foreign status and any treaty benefit. An individual owner provides Form W-8BEN; a foreign entity provides Form W-8BEN-E. We complete the correct one so your payments are not over-withheld.
How We Handle It
One Firm, From EIN to the Owner's Return
- 1
EIN and ITIN Setup
We obtain your Employer Identification Number, even without a Social Security Number, and, as a Certifying Acceptance Agent, the owner's ITIN, verifying documents in person so the passport stays in hand.
- 2
Track Reportable Transactions
We keep clean books of every transaction between the company and its foreign owner, capital in, distributions out, loans, and payments, because that is exactly what Form 5472 reports.
- 3
File the Annual Returns
We prepare Form 5472 with the pro forma Form 1120, plus any Form 5471, FBAR, or Form 8938 that applies, and file each one by its deadline so no automatic penalty is triggered.
- 4
The Owner's 1040-NR
When the owner has a U.S. filing obligation, we prepare Form 1040-NR to report U.S.-source income and reconcile any tax already withheld, so the personal and company filings line up.
Frequently Asked Questions
Foreign-Owned Business Questions, Answered
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