If you run an import/export business through a U.S. entity but live abroad, you may be asking whether you need to file Form 5472 with the IRS. The answer doesn’t depend on whether you ship goods into the U.S., export American products abroad, or manage global distribution. It depends on the type of company 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 know your entity type, why even companies without customer sales must file, and some extra considerations that often come up with import/export businesses, like physical presence and customs-related compliance.
What is Form 5472?
Form 5472 is an IRS information return. It reports cross-border transactions between a U.S. company and its foreign owner. It doesn’t calculate taxes, but it helps the IRS track money and property moving internationally. If your import/export company is foreign-owned and structured as a single-member LLC or corporation, Form 5472 almost certainly applies.
Typical reportable transactions include owner funding for shipments, reimbursements for freight costs, and payments from the company back to the owner. Even if your business had no completed sales in a year, these owner-related transactions still require filing.
Who must file Form 5472?
The filing requirement depends only 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 ownership must file Form 5472 with its full Form 1120.
- A multi-member LLC treated as a partnership files Form 1065 instead, not Form 5472.
How to know what type of company you have
If you used a formation company, you may not know for sure. Here’s how to check:
- If you formed an LLC with only one owner, you likely have a single-member LLC. Look at your EIN confirmation letter. If it shows your name followed by “Sole Mbr,” or describes your entity as a “disregarded entity,” you are probably single-member.
- If you formed an LLC with more than one owner, you probably have a multi-member LLC. Your EIN letter may show the applicant’s name with “Mbr,” which indicates multiple owners. Multi-member LLCs file Form 1065.
- If you formed a corporation (for example, a Delaware C-Corp), you must file Form 1120 each year. If foreign shareholders own at least 25%, you also file Form 5472.
- If you or your advisor filed Form 8832 or 2553 to elect corporate status, that may change your classification.
What information goes on Form 5472?
The IRS requires information about your company, its foreign owners, and all reportable transactions. For import/export companies, this might include:
- Wiring money from abroad into the U.S. company to fund inventory purchases.
- Reimbursements for customs brokerage, freight forwarding, or shipping.
- Payments from the company back to you as the foreign owner.
Even if you had no customer sales, these funding and reimbursement transactions must still be reported.
When is Form 5472 due?
Form 5472 is due on the same schedule as corporate tax returns. For calendar-year companies, the due date is April 15, with an extension until October 15 available if you file Form 7004. The form is never filed by itself—it must be attached to either a pro forma Form 1120 (for single-member LLCs) or a full Form 1120 (for corporations).
The penalty for failing to file is steep: $25,000 per year, per return. Additional $25,000 penalties can be added if you ignore IRS notices. These apply even if your import/export business didn’t book sales.
Extra considerations for import/export businesses
Import/export companies often create a physical presence in the U.S. by storing goods in warehouses, hiring staff, or maintaining offices. This may create a “U.S. trade or business,” which could mean the foreign owner must also file a Form 1040-NR as a non-resident individual with U.S. income.
Filing 1040-NR requires an ITIN (Individual Taxpayer Identification Number). Bookmate doesn’t handle ITINs directly, but we partner with theitin.com to help clients obtain them.
In addition, import/export operations can create state-level sales tax or use tax obligations, depending on where goods are warehoused or shipped. Bookmate does not manage state sales tax, but compliance software and state portals can help with those requirements. Our focus is federal filings.
Finally, customs compliance is separate from IRS filings. Customs brokers and freight forwarders usually assist with import documentation, while Bookmate ensures your IRS returns are filed correctly.
Common questions from import/export founders
Does it matter whether I import or export? No. The type of trade doesn’t affect the requirement. The IRS only cares about your entity structure and foreign ownership.
Do I need to file if there were no completed shipments? Yes. If you transferred money into the company or covered freight costs, those transactions are reportable even without revenue.
What if I already missed a year? Bookmate does not normally prepare past filings, but we can guide you on how to approach getting caught up.
Staying ahead of filing
Keep detailed records of every transfer between you and your company. In import/export businesses, this often includes large wires for inventory, shipping fees, and customs duties. Recording these properly helps ensure Form 5472 is accurate. Filing early also prevents stress and leaves time to respond to IRS questions.
Example for an import/export company
A founder in Mexico forms a Delaware single-member LLC to export U.S. manufactured goods back to Mexico. In the first year, there are delays and no sales, but he wires $40,000 into the U.S. account to pay suppliers. Even though no revenue came in, the $40,000 funding is a reportable transaction.
He must file Form 5472 with a pro forma 1120. Because goods are stored in a U.S. warehouse before export, he may also be considered to have a U.S. trade or business, which could require filing 1040-NR with an ITIN.
How Bookmate helps import/export businesses
Bookmate specializes in federal U.S. filings for foreign-owned companies. For import/export 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.
- Submit filings from within the U.S., ensuring the IRS accepts them.
- Provide guidance on how to address 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. For customs or sales tax obligations, you’ll need to work with brokers and state providers, while we handle the IRS side.
Final thoughts
Running an import/export business through a U.S. entity as a foreign founder is possible, but compliance is critical. The IRS does not care whether you import goods into the U.S. or export them abroad. It only cares about your entity type and ownership.
If you are a foreign owner of a single-member LLC or corporation, Form 5472 is almost always required. Even if you had no completed sales, filing is still necessary if there were owner-related transactions.
Bookmate helps import/export founders worldwide handle their U.S. federal tax filings, so they can focus on global trade instead of IRS penalties.
Learn more at trybookmate.co or book a consultation today.
