If you run a crypto or Web3 business through a U.S. company while living abroad, you may be wondering whether you need to file Form 5472 with the IRS. The answer doesn’t depend on whether you run a token project, a wallet service, a blockchain dev shop, or a DeFi platform.
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, you must file Form 5472. If it is a multi-member LLC taxed as a partnership, Form 5472 usually does not apply.
This guide explains what Form 5472 is, how to know your entity classification, what kinds of transactions must be reported, and why even Web3 companies with no revenue yet must still file. We’ll also cover special considerations for crypto businesses and explain how Bookmate helps.
What is Form 5472?
Form 5472 is an IRS information return that discloses certain transactions between a U.S. company and its foreign owner. It doesn’t calculate or pay tax, but it gives the IRS visibility into cross-border movements of money or property.
If your crypto or Web3 company is foreign-owned, and it is structured as a single-member LLC or a corporation, Form 5472 almost certainly applies.
For crypto companies, reportable transactions can include wiring fiat money into the company, paying for developers, or reimbursing the owner. Even if your project is pre-revenue or token-based, these kinds of financial movements still require reporting.
Who must file Form 5472?
The requirement 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 used a formation service, you may not know your classification. Here’s how to check:
- If you formed an LLC with one owner and no elections, you likely have a single-member LLC. Your EIN confirmation letter may show your name with “Sole Mbr,” or describe the entity as a “disregarded entity.”
- If you formed an LLC with multiple owners, you probably have a multi-member LLC. The EIN letter may list the applicant’s name with “Mbr,” signaling multiple owners. These entities file Form 1065.
- If you formed a corporation (for example, a Delaware C-Corp), you must file Form 1120 annually. If 25% or more is foreign-owned, you must also file Form 5472.
- If you or your accountant filed Form 8832 or 2553, that election overrides the default treatment.
What information goes on Form 5472?
The IRS requires information about the company, its foreign owners, and all reportable transactions. For crypto businesses, this may include owner contributions in fiat to cover expenses, reimbursements for software costs, or payments to contractors. Even without product launches or customers, these transactions must be reported.
When is Form 5472 due?
The due date is the same as corporate returns. For calendar-year companies, Form 5472 is due April 15, with an extension available until October 15 by filing 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 IRS penalty for missing or late filings is $25,000 per year. Additional $25,000 penalties may apply if notices are ignored. These penalties apply even when your project had no users, tokens, or revenue.
Special considerations for crypto & Web3 businesses
Crypto and Web3 businesses face some unique compliance concerns:
- Non-cash contributions – If you funded your U.S. company with crypto tokens instead of fiat, this can still count as a reportable transaction.
- U.S. presence – If your company hires U.S.-based employees or runs servers in the U.S., you may create what the IRS calls a “U.S. trade or business.” This could require the owner to also file Form 1040-NR and obtain an ITIN. Bookmate partners with theitin.com to help clients get ITINs.
- State-level obligations – If your project involves U.S.-based operations, you may have additional state compliance obligations. Bookmate does not handle state-level matters, but we can guide you on federal filings.
Common questions from crypto founders
Does it matter if I raised funds in crypto instead of dollars? No. Whether contributions were in cash or crypto, the filing requirement depends on entity type and ownership.
Do I need to file if there were no paying customers? Yes. If you funded the company or reimbursed yourself for expenses, those are reportable transactions.
What if I already missed a year? Bookmate does not usually prepare past filings, but we can guide you on how to catch up correctly.
Staying ahead of filing
Keep clear records of every transfer of money or crypto between you and your company. This may include fiat contributions, token allocations, or reimbursements for developer tools. Keeping accurate records makes it easier to complete Form 5472 and avoid mistakes. Filing early ensures you stay penalty-free.
Example for a crypto business
A founder in Singapore forms a Delaware single-member LLC to launch a crypto wallet platform. In the first year, the project earns no revenue, but the founder transfers $10,000 into the company’s account to pay developers. Even without paying customers, these transactions are reportable. He must file Form 5472 with a pro forma 1120 to avoid penalties.
How Bookmate helps crypto and Web3 founders
Bookmate specializes in U.S. federal filings for foreign-owned companies. For crypto and Web3 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.
- File from within the U.S. so submissions are accepted by the IRS.
- Provide guidance on how to handle past filings if you’ve missed them.
We don’t apply for EINs or ITINs directly, but we partner with theitin.com for ITINs and recommend formation companies for EIN assistance. Our role is ensuring your IRS filings are complete and penalty-free.
Final thoughts
Running a crypto or Web3 business through a U.S. entity as a foreign founder is increasingly common, but IRS compliance is critical. The IRS doesn’t care if you operate in blockchain, NFTs, or DeFi—it only cares about your company’s structure.
If you are a foreign owner of a single-member LLC or corporation, Form 5472 is almost always required. Even without customers or revenue, filing is necessary if there were owner-related transactions.
Bookmate helps crypto founders around the world stay compliant, so you can focus on building your project instead of worrying about IRS forms.
Learn more at trybookmate.co or book a consultation today.
