Understanding Pro Forma 1120: What Foreign LLC Owners Need to Know

Forms

January 10, 2025

8 min read

Written by FODL Team

If you own a foreign-owned single-member LLC, you've probably heard that you need to file Form 5472. But there's another form that often causes confusion: the Pro Forma 1120.

This guide explains what it is, why it's required, and how it works with Form 5472.

What is a Pro Forma 1120?

A "Pro Forma" Form 1120 is a simplified version of the standard corporate income tax return (Form 1120). It serves as a cover sheet for your Form 5472 filing.

Key Point

For foreign-owned single-member LLCs, the Pro Forma 1120 is not a tax return — it's simply a required attachment that allows Form 5472 to be processed by the IRS.

Why is the Pro Forma 1120 Required?

Here's the technical background:

1.Single-member LLCs owned by foreign persons are "disregarded entities" for U.S. tax purposes
2.Disregarded entities don't normally file their own tax returns
3.However, regulations require these LLCs to file Form 5472 to report related-party transactions
4.Form 5472 cannot be filed standalone — it must be attached to a Form 1120
5.The solution: a Pro Forma (simplified) Form 1120 that acts as a carrier document

Think of the Pro Forma 1120 as an envelope — it gets your Form 5472 into the IRS system.

What Goes on the Pro Forma 1120?

The Pro Forma 1120 only includes identifying information. You do not report income, expenses, or calculate taxes.

Information to Include

LLC name exactly as registered with the IRS

LLC address

Employer Identification Number (EIN)

Date of incorporation / formation

Tax year (beginning and ending dates)

Check box indicating Form 5472 is attached

What to Leave Blank or Zero

All income lines (revenue, sales, etc.)

All deduction lines (expenses, depreciation, etc.)

Tax calculation sections

Schedule sections (unless specifically required)

How Form 5472 and Pro Forma 1120 Work Together

Pro Forma 1120

The "cover sheet" — Contains only identifying information about your LLC. Goes on top of your filing package.

Form 5472

The "actual information return" — Reports transactions between you and your LLC. Attached to the Pro Forma 1120.

Filing Order: Pro Forma 1120 on top, Form 5472 attached behind it. Mail together as a single package.

Common Questions

Do I owe taxes on the Pro Forma 1120?

No. The Pro Forma 1120 for a disregarded entity does not calculate any tax liability. It's purely informational.

Is this the same as a regular 1120?

No. A regular Form 1120 is a complete corporate tax return with income, deductions, and tax calculations. The Pro Forma version only has identifying information.

Can I e-file the Pro Forma 1120 with Form 5472?

No. This specific combination (Pro Forma 1120 + Form 5472 for a disregarded entity) must be filed by mail. The IRS does not accept electronic filing for this package.

What if my LLC had actual business income?

As a disregarded entity, your LLC's income flows through to you personally. You may have other U.S. tax obligations depending on the nature of the income (e.g., ECI). However, the Pro Forma 1120 itself still remains a simplified information return.

Step-by-Step: Completing the Pro Forma 1120

Header Section

Enter LLC name, address, and EIN

Tax Year

Enter the beginning and ending dates of your tax year

Check Box K

Check the box indicating Form 5472 is attached

Income/Deductions

Leave blank or enter zeros — no actual figures needed

Signature

Sign and date the form

Summary

The Pro Forma 1120 is a required companion document when filing Form 5472 for a foreign-owned single-member LLC.

• It's not a tax return — just an information carrier
• Only identifying information is required
• No income, deductions, or taxes are calculated
• Must be filed by mail with Form 5472 attached

Understanding this distinction helps demystify the filing process for foreign LLC owners.