Seeking Advice on Form 5472 & Pro Forma 1120
UK citizen, non-US resident. I formed a Wyoming single-member LLC in Sept 2025 for freelance work and obtained an EIN. The LLC has no US employees, office, bank account, or US-sourced income. All freelance income was received personally rather than through the LLC. Given these circumstances, was I required to file Form 5472 and a Pro Forma 1120 for 2025? If so, what filing obligations do I have now, and what penalties might apply for not filing?
Quick Answer:
Since the LLC was formed in September 2025, your first filing deadline would typically be April 15, 2026.
Even if you received income personally, a foreign-owned single-member LLC (disregarded entity) is generally required to file **Form 5472** and a **Pro Forma 1120** if any "reportable transactions" occurred.
Under IRC Section 6038A, reportable transactions include the payment of formation costs, filing fees, or any movement of money between you (the owner) and the LLC. If you personally paid the Wyoming state filing fees or registered agent fees to form the entity, this is technically a reportable contribution of capital.
**Requirements and Penalties:**
* **Filing:** You must file Form 5472 and the Pro Forma 1120 by the annual deadline.
* **Penalty:** The penalty for failure to file a timely or complete Form 5472 is **$25,000** per year.
* **Current Status:** If your formation was in 2025, you are not yet late. You must file for the 2025 tax year by April 2026.
If the LLC remained entirely dormant with zero financial activity (no fees paid, no capital contributed, no expenses), you might not have a filing requirement, but most practitioners advise filing to report the initial formation costs to avoid the $25,000 penalty risk.
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
