If you run an affiliate marketing business through a U.S. company but live abroad, you may be wondering if you need to file Form 5472 with the IRS. The answer has nothing to do with whether you promote e-commerce products, software subscriptions, or online courses. It depends on the type of entity you formed.
If your company is a foreign-owned single-member LLC or a corporation with at least 25% foreign ownership, then yes, Form 5472 is required. If your business is a multi-member LLC taxed as a partnership, Form 5472 usually does not apply.
This guide explains what Form 5472 is, how to check your entity classification, what kinds of transactions must be reported, and why even affiliate businesses with no commissions yet must still file. We’ll also provide an example for affiliate marketers and explain how Bookmate helps keep you compliant.
What is Form 5472?
Form 5472 is an IRS information return that discloses transactions between a U.S. company and its foreign owners. It does not calculate tax liability, but it allows the IRS to track capital contributions, loans, reimbursements, and other financial movements.
If your affiliate marketing company is foreign-owned and structured as a single-member LLC or corporation, Form 5472 likely applies.
For affiliate businesses, common reportable transactions include wiring money from abroad to cover website hosting, ad spend, or software subscriptions, as well as the company paying you back. Even if you earned no affiliate commissions during the year, these transfers still require reporting.
Who must file Form 5472?
The filing obligation depends on entity type:
- A foreign-owned single-member LLC must file Form 5472 with a pro forma Form 1120.
- A U.S. corporation with 25% or more foreign shareholders must file Form 5472 with the full Form 1120.
- A multi-member LLC taxed as a partnership files Form 1065 instead, not Form 5472.
How to know what type of company you have
If you worked with a formation service, you may not know for sure. Here are some ways to check:
- If you formed an LLC with one owner and never filed a special election, you almost certainly have a single-member LLC. Your EIN confirmation letter may list your name with “Sole Mbr,” or it may describe the entity as a “disregarded entity.”
- If you formed an LLC with more than one owner, you probably have a multi-member LLC. Your EIN letter may list the applicant’s name with “Mbr,” which means multiple owners. These companies file Form 1065.
- If you formed a corporation (like a Delaware C-Corp), you must file Form 1120 every year. If 25% or more is foreign-owned, Form 5472 is also required.
- If you or your advisor ever filed an election like Form 8832 or 2553, that could change your classification.
What information goes on Form 5472?
The form requires details about your company, its owners, and transactions between them. For affiliate marketing businesses, this often means owner contributions to pay for web hosting, email marketing tools, or advertising, and any reimbursements from the company back to the owner.
Even without affiliate payouts, these funding and reimbursement transactions still count.
When is Form 5472 due?
Form 5472 is due at the same time as corporate returns. For calendar-year companies, the due date is April 15, with an extension to October 15 available if you file Form 7004. The form must always be attached to either a pro forma Form 1120 (for single-member LLCs) or a full Form 1120 (for corporations).
The penalty for missing or late filings is $25,000 per year. Additional $25,000 penalties can be added if you ignore IRS notices. This applies even if your affiliate business had no commissions.
Common questions from affiliate marketers
Does it matter what kind of products I promote? No. Whether you promote Amazon products, SaaS tools, or courses, the filing requirement depends only on your entity type and ownership.
Do I need to file if I had no affiliate income? Yes. If you funded the company or reimbursed yourself, those are reportable transactions that require Form 5472.
What if I already missed a filing? Bookmate does not usually prepare past years’ filings, but we can guide you on how to approach them correctly.
Staying ahead of filing
Keep track of every transfer of money between you and your company. In affiliate marketing, this may include payments for domain names, ad spend, or content creation. Recording these transactions ensures nothing is missed and makes preparing Form 5472 straightforward. Filing early gives you time to resolve any IRS questions.
Example for an affiliate marketing business
A founder in the Philippines forms a Wyoming single-member LLC for affiliate marketing. In the first year, there are no affiliate commissions yet, but he wires $5,000 into the company’s U.S. bank account to cover website design and advertising. Even without revenue, the $5,000 contribution is a reportable transaction.
He must file Form 5472 with a pro forma 1120 to stay compliant and avoid penalties.
How Bookmate helps affiliate marketers
Bookmate specializes in federal filings for foreign-owned businesses. For affiliate marketing companies, we:
- Prepare and file Form 5472 with the pro forma 1120 for single-member LLCs.
- Prepare and file Form 1120 with Form 5472 attached for corporations with foreign shareholders.
- Ensure filings are submitted correctly from within the U.S. so the IRS accepts them.
- Provide guidance on how to handle past filings if you’ve missed them.
We don’t apply for EINs or ITINs directly, but we work with theitin.com for ITINs and recommend formation companies for EIN support. Our focus is keeping your IRS filings correct, complete, and penalty-free.
Final thoughts
Running an affiliate marketing business through a U.S. entity as a foreign founder is common and fully legal, but it comes with IRS filing requirements. The type of products you promote doesn’t matter—your entity structure does.
If you’re a foreign owner of a single-member LLC or corporation, Form 5472 is almost always required. Even without affiliate commissions, filing is necessary if there were owner-related transactions.
Bookmate helps affiliate marketers worldwide meet these obligations, so you can focus on building your online revenue instead of worrying about penalties.
Learn more at trybookmate.co or book a consultation today.
