If you run a marketing agency through a U.S. company but live abroad, you may be asking yourself whether you need to file Form 5472 with the IRS. The answer doesn’t depend on whether you sell social media services, ad campaign management, or creative strategy—it depends on the type of company you formed and who owns it.
If you own a foreign-owned single-member LLC or a corporation with foreign shareholders owning 25% or more, then yes, you likely must file it. If your agency is a multi-member LLC taxed as a partnership, then Form 5472 generally does not apply.
This guide explains what Form 5472 is, why business type doesn’t matter, how to know your entity classification, and why even agencies with no client revenue may still need to file. We’ll also walk through an example for marketing agencies and explain how Bookmate helps you stay compliant.
What is Form 5472?
Form 5472 is an information return that tells the IRS about certain transactions between a U.S. company and its foreign owners. It doesn’t calculate or pay tax itself. Instead, it exists so the IRS can see how money moves across borders.
If your marketing agency is owned by a foreign person or company, and it is structured as a single-member LLC or a corporation, you are probably required to file.
Transactions that trigger reporting include money you put into the company from abroad, funds paid back to you, or reimbursements. Even without paying clients, if you transferred money into your agency’s account or paid expenses that the company later reimbursed, you are required to file.
Who must file Form 5472?
The IRS bases this requirement on your entity type, not on your line of work. For agency owners:
- If you formed a single-member LLC that is foreign-owned, you file Form 5472 with a pro forma Form 1120.
- If you formed a U.S. corporation and at least 25% is foreign-owned, you file Form 5472 with the full Form 1120.
- If you formed a multi-member LLC and it is treated as a partnership, you file Form 1065 with K-1s—not Form 5472.
How to know what type of company you have
It can be confusing, especially if you used a formation service. Here’s how you can usually tell:
- If you registered an LLC and are the only owner, you almost certainly have a single-member LLC. Look at your EIN confirmation letter. If it shows your name followed by “Sole Mbr,” or if it refers to your entity as “disregarded,” you are likely a single-member LLC.
- If you registered an LLC with more than one owner listed, you probably have a multi-member LLC. The EIN letter may show the name of the applicant followed by “Mbr,” which indicates multiple owners. These LLCs usually file Form 1065.
- If you registered a corporation (for example, a Delaware C-Corp), you file Form 1120 every year. If foreign shareholders own at least 25%, you also need Form 5472.
- If you or your accountant ever filed an election (Form 8832 or 2553) to change tax status, that may alter your classification. Checking whether such a form was filed is key.
What information goes on Form 5472?
The form asks for identifying details about your company, its owners, and transactions. You’ll report the company’s legal name, EIN, and address; the owner’s name, country, and ownership percentage; and any transfers of money or property between the company and its owner.
For marketing agencies, the most common reportable transactions are capital contributions from the owner to pay for ad spend, software subscriptions, or contractors, and any reimbursements back to the owner.
Remember—even if your agency never landed a client, these owner-funding transactions still count. The IRS requires filing regardless of whether your business earned revenue.
When is Form 5472 due?
The deadline aligns with corporate returns. For calendar-year companies, it is April 15, with an extension available until October 15 if you file Form 7004. Importantly, Form 5472 is never filed on its own. For single-member LLCs, it must be attached to a pro forma Form 1120. For corporations, it must be attached to the full Form 1120.
The penalties for failing to file or filing late are steep: $25,000 per return, per year. If you ignore IRS notices, additional $25,000 penalties can be added. The penalty applies even when your agency had no income.
Common questions from agency owners
Many agency owners ask whether the type of services they provide matter. They don’t. Whether you run a social media marketing agency, an ad management agency, or a creative design agency, the only thing that matters is whether you are a foreign-owned single-member LLC or a foreign-owned corporation.
Another common question is whether they need to file if the agency never billed a client. The answer is usually yes. As long as there were reportable transactions—such as you wiring money into the U.S. account—Form 5472 must be filed.
Some founders also ask what to do if they realize they missed a past filing. Bookmate does not typically prepare past years’ filings on your behalf, but we can guide you on how to approach the process so you can get caught up correctly.
How to stay ahead of filing
The easiest way to avoid problems is to stay organized. Anytime you transfer funds into your marketing agency’s bank account, record whether it is a contribution or a loan. Anytime the company pays you back, document it clearly. Even small amounts matter. This way, when it’s time to prepare Form 5472, everything is ready and nothing gets missed.
Filing early rather than waiting until the deadline also makes the process less stressful. If the IRS has questions, you’ll have time to address them.
Example for a marketing agency
Consider a founder in Spain who forms a Wyoming single-member LLC to run a social media agency. In the first year, she has no clients but wires $10,000 into the company’s U.S. account to pay for design tools and contractor invoices. Even though there were no paying customers, the $10,000 contribution is a reportable transaction.
She must file Form 5472 with a pro forma 1120. Filing keeps her compliant and avoids the $25,000 penalty.
How Bookmate helps agency founders
Bookmate focuses on U.S. federal filings for foreign-owned companies. For marketing agencies, this means 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.
- Make sure filings are submitted from within the U.S. so they are accepted by the IRS.
- Guide you on how to approach past filings if you discover you’ve missed any.
We do not apply for EINs or ITINs directly, but we partner with theitin.com for ITINs and can recommend formation companies for EIN support. Our focus is on making sure your IRS filings are correct, complete, and on time.
Final thoughts
Whether you run a consulting firm, a software startup, or a marketing agency, the IRS does not care what services you sell. What matters is the structure of your U.S. company. If you own a foreign-owned single-member LLC or a corporation with foreign shareholders, Form 5472 is almost always required.
Even without clients or income, you should still file if there were owner-related transactions.
Bookmate helps agency founders around the world stay compliant, avoid penalties, and keep their focus on building their businesses rather than worrying about IRS forms.
Learn more at trybookmate.co or book a consultation today.
