My US LLC has no profit - do I still file Form 5472?

Generally yes. A foreign-owned single-member LLC must file Form 5472 (with a pro-forma 1120) even with no US income, simply because it had reportable transactions such as funding. Missing it risks a $25,000 penalty.

What's the penalty for missing Form 5472?

The IRS penalty is currently $25,000 per form for failure to file or for an incomplete/late filing, and it is not capped - a further $25,000 accrues for each 30-day period the failure continues beyond 90 days after IRS notice. Confirm your filing duties with a US tax advisor.

Form 5472

Form 5472 is a US IRS information return that foreign-owned US corporations and foreign-owned single-member LLCs must file to report transactions with their related (foreign) parties.

When a German company or person owns a US corporation (25%+) or a US single-member LLC, the US entity generally must file Form 5472 each year reporting "reportable transactions" with related parties - capital contributions, loans, payments, and the like. It is one of the IRS's most strictly enforced filings: the penalty for failing to file (or filing late/incomplete) is substantial - currently $25,000 per form, and it is not capped: a further $25,000 applies for each 30-day period the failure continues beyond 90 days after IRS notice.

A foreign-owned single-member LLC, even with no US tax due, files Form 5472 together with a pro-forma Form 1120. This is a frequent and costly trap for German founders who assume a "disregarded" LLC has no filing duty.

Related providers: Accounting & Tax

Frequently asked questions

My US LLC has no profit - do I still file Form 5472?: Generally yes. A foreign-owned single-member LLC must file Form 5472 (with a pro-forma 1120) even with no US income, simply because it had reportable transactions such as funding. Missing it risks a $25,000 penalty.
What's the penalty for missing Form 5472?: The IRS penalty is currently $25,000 per form for failure to file or for an incomplete/late filing, and it is not capped - a further $25,000 accrues for each 30-day period the failure continues beyond 90 days after IRS notice. Confirm your filing duties with a US tax advisor.