If you own a coaching 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 doesn’t depend on whether you coach clients in business, life skills, fitness, or career development. What matters is 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 must be filed. If your coaching company is a multi-member LLC taxed as a partnership, Form 5472 usually does not apply.
This guide explains what Form 5472 is, why the kind of business doesn’t matter, how to check what entity type you have, and why even coaching businesses with no paying clients must file. We’ll also walk through an example for coaches and explain how Bookmate can help.
What is Form 5472?
Form 5472 is an IRS information return. It does not calculate or pay taxes, but it reports cross-border transactions between your U.S. company and its foreign owner. The IRS uses it to monitor activity between U.S. entities and non-U.S. individuals or companies.
For coaching businesses, common reportable transactions include when you fund the business from abroad, when the business reimburses you for expenses, or when you pay yourself from company funds. Even if no clients paid you during the year, these owner-related transactions still trigger the requirement to file.
Who must file Form 5472?
The obligation depends entirely on entity type:
- If you own a foreign-owned single-member LLC, you must file Form 5472 with a pro forma Form 1120.
- If you own a corporation with 25% or more foreign shareholders, you must file Form 5472 with the full Form 1120.
- If you own a multi-member LLC taxed as a partnership, you file Form 1065 with K-1s instead. Form 5472 does not apply.
How to know what type of company you have
Many founders who used formation services are unsure how their company is classified. Here are some clues:
- If you formed an LLC and you are the only owner, you almost certainly have a single-member LLC. On your EIN confirmation letter, you may see your name listed with “Sole Mbr,” or the letter may describe the entity as a “disregarded entity.”
- If you formed an LLC with more than one owner listed, you probably have a multi-member LLC. On the EIN letter, the applicant’s name may be followed by “Mbr,” which indicates multiple owners. Multi-member LLCs file Form 1065.
- If you formed a corporation (for example, a Delaware C-Corp), you are required to file Form 1120 annually. If foreign shareholders own at least 25%, you must also file Form 5472.
- If you filed an election with the IRS (Form 8832 or 2553) to change tax status, that election overrides the default rules. Reviewing those forms will clarify your treatment.
What information goes on Form 5472?
The form asks for basic company details, owner information, and descriptions of transactions. For coaching businesses, the most common entries include money wired from your personal account abroad into the company’s U.S. account, payments made from the company to you, and any reimbursements for expenses.
Even without client revenue, if you moved money between yourself and the company, the IRS expects a filing.
When is Form 5472 due?
Form 5472 follows the same schedule as corporate returns. For calendar-year companies, the due date is April 15, with an extension available until October 15 if you file Form 7004. Importantly, Form 5472 must be attached to a return. For single-member LLCs, that means attaching it to a pro forma Form 1120. For corporations, it attaches to the full Form 1120.
Penalties for late or missing filings are significant. The IRS charges $25,000 per return, per year, with additional $25,000 penalties if you ignore notices. These penalties apply even if your coaching business had no clients and no income.
Common questions coaches ask
One common question is whether the type of coaching matters. It does not. Whether you coach executives, entrepreneurs, or individuals, the filing requirement depends only on your company’s structure.
Another frequent question is whether a company with no revenue must file. Yes—if there were any reportable transactions, even just you funding the business, Form 5472 is required.
Some founders ask what to do if they missed a past filing. Bookmate does not typically prepare past filings on your behalf, but we can guide you on how to approach resolving them properly.
Staying ahead of filing
The simplest way to avoid trouble is to document every transfer between you and the company. If you put money in, record whether it is a contribution or a loan. If the company pays you back, note it clearly. These details make preparing Form 5472 straightforward. Filing early also ensures there is time to respond if the IRS has questions.
Example for a coaching business
A founder in Canada forms a Delaware single-member LLC to run a business coaching company. In the first year, no clients signed up, but she wired $12,000 from her personal account to cover marketing tools and subscriptions.
Even though the company had no client revenue, the $12,000 funding counts as a reportable transaction. She must file Form 5472 with a pro forma 1120. Filing on time avoids a $25,000 penalty.
How Bookmate helps coaching businesses
Bookmate specializes in U.S. federal tax filings for foreign-owned companies. For coaching businesses, 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 and on time from within the U.S.
- Provide guidance on how to address past filings if you discover you missed a year.
We do not 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 a coaching business through a U.S. entity as a foreign founder is common and fully legal, but it comes with strict compliance requirements. The IRS does not care what services you offer. It only cares about your company’s structure.
If you own a foreign-owned single-member LLC or corporation, Form 5472 is almost always required. Even without clients or income, filing is still necessary when there are owner-related transactions.
Bookmate helps coaches worldwide stay compliant by handling these filings, so you can focus on helping clients instead of worrying about the IRS.
Learn more at trybookmate.co or book a consultation today.
