This is one of the most common questions we receive from foreign owners of U.S. entities.
Short Answer:
Yes, a foreign-owned U.S. LLC must generally file Form 5472 and a pro forma Form 1120, even if there was no income or expenses.
Explanation:
A U.S. LLC owned by a non-U.S. person is treated as a reporting entity for Form 5472 purposes. Even if the entity is disregarded and inactive, the IRS still requires reporting of ownership and certain transactions.
Example:
A non-U.S. individual forms a Delaware LLC but does not open a bank account or conduct business. The entity is still required to file Form 5472.
Common Mistake:
Assuming no activity means no filing.
When to Get Help:
These filings carry significant penalties if missed. We would be happy to review your structure and confirm your obligations.
If this situation applies to you, we would be happy to review your structure and confirm your filing requirements.