If you're a non-U.S. person (nonresident alien (NRA), for example, you've never visited the U.S. and don’t have a U.S. visa or Green Card) and you own a U.S. single-member LLC treated as a foreign-owned U.S. disregarded entity, you cannot file Schedule C as self-employed. In this case, even if your Limited Liability Company (LLC) doesn’t generate U.S.-source income or worldwide income, you're required to file Form 5472 with a pro forma 1120.
The tax and reporting obligations for such entities can be unexpectedly complex. We at TFX are happy to help! For details, see our guide How to file taxes for an LLC with no income: a comprehensive guide.
Tax filing obligations for both the LLC and the foreign owner
U.S. single-member LLC owned by the NRA treated as a foreign-owned U.S. disregarded entity (FOUSDE)
EIN requirement:
The LLC must apply for an Employer Identification Number (EIN) using Form SS-4 and submit it via fax or mail, or apply online through the IRS website.
Box 10 should explain that it is for filing Form 5472.
Required even if there is no U.S. trade or business or U.S.-source income.
Form 5472 — to report transactions between the U.S. LLC and its foreign owner (e.g., capital contributions, payments).
Pro forma Form 1120 — just the first page, with "Foreign-Owned U.S. DE" written at the top.
Deadline: April 15 (with an option to file Form 7004 for a 6-month extension to file 5472/1120. Request a non-personal extension in your TFX account).
How to file:
“Foreign-owned U.S. DE” should be written across the top of the Form 1120 and Form 7004.
❗ Neither the extension (Form 7004) nor Form 5472 with pro forma 1120 can be e-filed. Both must be faxed or mailed to a specific IRS department that handles foreign-owned disregarded entities (FOUSDEs):
☎ Fax (300 DPI or higher) to 855-887-7737.
✉ Mail to:
Internal Revenue Service
1973 Rulon White Blvd
M/S 6112 Attn: PIN Unit
Ogden, UT 84201
Common pitfalls
Failure to file Form 5472 carries a $25,000 penalty per year.
Form 5472 must be mailed or faxed to the correct Ogden, UT address.
Filing Form 5472 without an EIN or mailing it to the wrong address can result in rejection or penalties.
Owner-level filings (if required)
If you don’t have a TIN (SSN or ITIN), apply for an ITIN using Form W-7 and mail it with your tax return. TFX can assist you with this form.
The foreign owner must file if the LLC is engaged in a U.S. trade or business or has effectively connected income (ECI).
If the LLC only holds passive assets or has no U.S. activity, the owner might not need to file Form 1040-NR — but filing Form 5472 is still mandatory.
Withholding obligations (if applicable):
If the LLC makes distributions to its NRA owner or pays U.S.-source income to other foreign persons, it may need to:
Withhold 30% tax (or lower treaty rate).
File Form 1042 and 1042-S to report payments to foreign persons.
Deadline: April 15 or June 15 (with an option to file for a 6-month extension to file personal nonresident tax return. Request a personal extension in your TFX account).
How to file: E-filing is allowed.
What to choose: Individual tax return preparation or tax preparation for a business?
If you have a single-member LLC based in the U.S. that you would like to be treated as a disregarded entity (DE), and you want TFX to prepare a tax return for you:
If you are a non-resident (NRA — not a U.S. person), answer Yes to the question "I am looking for tax preparation for a business or entity" in your tax questionnaire. This is because the IRS treats foreign-owned U.S. disregarded entities (FOUSDEs) differently from U.S.-owned ones (USDEs).
If you also need to file Form 1040-NR (the nonresident individual income tax return) — for example, if your LLC is engaged in a U.S. trade or business — then also answer Yes to “I am looking for individual tax return preparation” and No to “I am self-employed or an independent contractor”.
If you are a U.S. person, answer Yes to "I am looking for individual tax return preparation" and “I am self-employed or an independent contractor” in your tax questionnaire. You will need to report your LLC's income and expenses on Schedule C of your Form 1040 (the individual income tax return).
A "disregarded entity" is a business structure that is separate from its owner for legal purposes, but ignored (or "disregarded") for U.S. federal income tax purposes.
For legal purposes: The entity exists as a separate legal person. For example, a single-member LLC can sign contracts, own property, and offer liability protection to its owner.
For tax purposes: The IRS ignores the entity as separate from its owner. The income, expenses, and tax obligations "pass through" to the owner's individual tax return.