Stay Compliant. Avoid Penalties.

Form 5472 is an information return required by the IRS for any US LLC that is at least 25% foreign-owned. It reports ‘reportable transactions’ between the LLC and its foreign owner—including capital contributions, distributions, loans, rent payments, and service fees. Every foreign-owned single-member LLC must file Form 5472 annually, even if the LLC had zero revenue. The form is attached to a pro forma Form 1120 (US Corporation Income Tax Return).

The IRS imposes an automatic $25,000 penalty for each Form 5472 that is not filed, filed late, or filed with substantially incomplete information. This penalty applies per form, per year. If you have multiple years of non-filing, penalties can accumulate rapidly—$50,000 for two years, $75,000 for three years, and so on. The IRS has been increasingly aggressive about enforcing these penalties against foreign-owned LLCs. We help clients who have missed filings get into compliance, often with penalty abatement strategies.

An FBAR (Foreign Bank Account Report, FinCEN Form 114) is required for US persons who have a financial interest in, or signature authority over, foreign financial accounts with an aggregate value exceeding $10,000 at any time during the calendar year. As a non-resident LLC owner, you generally are not a ‘US person’ for FBAR purposes. However, your US LLC itself may have FBAR obligations if it holds or has signature authority over foreign bank accounts. We analyze your specific situation during our compliance review.

Absolutely. We regularly review returns prepared by other CPAs and tax preparers and find significant errors—missed treaty positions, incorrect ECI classifications, overpaid withholding, and improperly filed forms. We amend incorrectly filed returns and help clients recover substantial refunds they’re owed. If you suspect your previous filings weren’t done right, a compliance review with us could put money back in your pocket.

State compliance varies by formation state. Most states require an annual report and may charge a franchise tax or fee. For example, Wyoming requires an annual report ($60 minimum) due on your LLC’s anniversary month. Delaware requires a $300 annual franchise tax due June 1 but no annual report for LLCs. Florida requires an annual report ($138.75) due May 1. New Mexico has no annual report or franchise tax. We handle all state filings as part of our compliance packages.

Form 5472 is due on April 15 of the year following the tax year (for calendar-year filers). You can request an automatic 6-month extension by filing Form 7004, which extends the deadline to October 15. However, we strongly recommend filing by the original deadline to avoid any potential complications. If your LLC was formed mid-year, your first Form 5472 covers the period from formation through December 31.

If you have unfiled Form 5472 returns from previous years, the potential penalties can be substantial—$25,000 per form, per year. However, the IRS has procedures for late filers, and penalty abatement may be available if you can demonstrate reasonable cause. We specialize in bringing non-compliant LLCs into compliance and have successfully obtained penalty abatement for many clients. The key is to act proactively rather than waiting for an IRS notice.

It depends on your formation state and where your LLC does business. States without income tax (Wyoming, Delaware, Nevada, Texas, Florida, etc.) generally don’t require a state income tax return. However, if your LLC has nexus in a state with income tax—through customers, employees, or significant sales—you may have state filing obligations. California, for example, imposes an $800 minimum franchise tax on all LLCs doing business in the state, regardless of income.

A registered agent is a person or company designated to receive legal and official documents on behalf of your LLC, including service of process, state correspondence, and tax notices. Every LLC must maintain a registered agent in its state of formation. The registered agent must have a physical address (not a P.O. Box) in the state and be available during business hours. We provide registered agent services as part of our compliance packages.

An annual report is a state filing that updates your LLC’s basic information—registered agent, principal address, member/manager names—with the state. It’s an administrative filing, not a tax filing. A tax return (federal or state) reports your LLC’s income, deductions, and tax liability to the IRS or state tax authority. Most LLCs need to file both: an annual report with the state and tax returns with the IRS (and potentially the state).

While it’s technically possible to handle some compliance tasks yourself—like filing an annual report—we strongly recommend professional guidance for federal tax filings. Form 5472 is notoriously complex, and errors can trigger the $25,000 penalty. Tax treaty positions require proper documentation. FBAR filings have their own set of rules. A CPA who specializes in non-resident tax compliance can save you from costly mistakes and ensure you’re not overpaying taxes.

We provide end-to-end compliance management: (1) We prepare and file Form 5472 + pro forma Form 1120 for single-member LLCs, (2) We file Form 1065 for multi-member LLCs and Form 1120 for C-Corps, (3) We file Form 1040NR for non-residents and Form 1040 for US citizens, (4) We prepare Form 8833 for treaty positions, (5) We handle state annual reports and franchise tax filings, (6) We review prior returns for errors and recover refunds, (7) We maintain your registered agent status, and (8) We provide a compliance calendar so you never miss a deadline. Everything is included in our annual compliance packages.