Form 5472 and proforma 1120 service

Form 5472 & proforma 1120

Form 5472 + Proforma 1120 is an annual return filed by a foreign-owned disregarded entity (most commonly a foreign-owned single-member LLC). By default rules, a single-member LLC is treated as a “disregarded entity” for tax purposes. This means that the LLC income is considered made by the single owner not the LLC.

This is not an income tax return but an informational return filed by the LLC. Here the entity does not report any income or claim business expenses. Instead, it reports certain financial transactions between the owner and the LLC that took place during the year. No income tax gets calculated on this return.

You should file this return if you are the foreign owner of a single-member LLC that was still active during the year. In the year you close the LLC, you should also file the last return and mark it as “Final” so the IRS no longer expects a return from your entity.

Our package

Form 5472 + Proforma 1120

$200

Prices

We charge a fixed fee of $200 to prepare and file this return. Note that this return can only be faxed or mailed to the IRS. Our fee already includes faxing it to the IRS. You will receive a copy of the filed return as well as proof of submission.

Process

To see a complete step-by-step, click on “Get started” above.

Do I need to file an income tax return?

Since a single-member LLC for tax purposes is treated as a disregarded entity, the owner is the person required to report the income in his/her tax return and pay tax (if applicable).

As a nonresident alien, you are not subject to income tax in the US if your income is not “effectively connected with the conduct of a trade or business in the US”. This means that as long as you don’t conduct business operations within the US, your income from the LLC won’t be taxable.

More often than not, your LLC’s gross revenue for the year gets reported to the IRS by third parties. That’s why we recommend you file an income tax return (a nonresident return) to comply with reporting this income and attach a statement to the return explaining to the IRS why the LLC income is not taxable in the US under the law. This will prevent the IRS from making a tax assessment for the revenue reported under the LLC.