Form 5472 for Zero-Activity Foreign-Owned LLCs
Even if your LLC had no business activity, revenue, or expenses during the tax year, you are still required to file Form 5472 with the IRS.
The IRS Requirement
Under Treasury Regulations, a foreign-owned single-member LLC that is treated as a "disregarded entity" for US tax purposes must still file Form 5472 along with a Pro Forma Form 1120. This requirement exists regardless of whether:
- Your LLC earned any revenue
- Your LLC had any expenses
- You conducted any transactions
- Your LLC was active for only part of the year
What "Zero Activity" Actually Means
A true zero-activity LLC is one where absolutely no reportable transactions occurred during the tax year. This means:
Counts as Zero Activity
- • No revenue or income
- • No expenses paid
- • No capital contributions
- • No distributions taken
- • No loans to/from owner
NOT Zero Activity
- • Owner deposited $100 for fees
- • Paid annual registered agent
- • Any money transferred in/out
- • Services rendered to owner
- • Property transfers
Common Mistake
Many foreign LLC owners assume "no business activity" means they don't need to file. This is incorrect. Even maintaining the LLC's existence (paying registered agent fees, state fees, etc.) can create reportable transactions. When in doubt, file Form 5472.
Frequently Asked Questions
Do I need to file Form 5472 if my LLC had no activity?
Yes. Foreign-owned single-member LLCs must file Form 5472 annually regardless of business activity. The filing requirement is based on ownership, not activity level.
What do I report if there were no transactions?
You still complete Form 5472 with your LLC and owner information. The transaction sections will show zero amounts, but the form must be filed to confirm no reportable transactions occurred.
What's the penalty for not filing a zero-activity Form 5472?
The penalty is $25,000 per form, per year. This applies whether you had business activity or not. The IRS does not reduce penalties based on activity level.
File Your Zero-Activity Form 5472
Complete your filing in minutes, even with no business activity to report.