If you run an online course business through a U.S. company while living abroad, you may be wondering if you need to file Form 5472 with the IRS. The answer doesn’t depend on whether you teach business skills, fitness, coding, or personal development. It depends on the type of entity you formed.
If your online course 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 generally does not apply.
This guide explains what Form 5472 is, how to know your entity type, what transactions need to be reported, and why even course businesses with no student enrollments yet must still file. We’ll also cover a real-world example and explain how Bookmate helps.
What is Form 5472?
Form 5472 is an IRS information return that discloses certain transactions between your U.S. company and its foreign owner. It does not calculate or pay tax, but it allows the IRS to track contributions, reimbursements, loans, and payments. If you operate an online course business through a foreign-owned single-member LLC or a corporation, you almost certainly must file.
For online course businesses, reportable transactions often include wiring money from abroad to pay for hosting, learning platforms, or marketing expenses, as well as the company paying you back. Even without student revenue, these transactions make filing necessary.
Who must file Form 5472?
The requirement depends entirely 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 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 service, you may not know your classification. Here’s how to check:
- If you formed an LLC with only one owner, you likely have a single-member LLC. On your EIN confirmation letter, you may see your name with “Sole Mbr,” or the entity may be described as a “disregarded entity.”
- If you formed an LLC with more than one owner, you probably have a multi-member LLC. On the EIN letter, the applicant’s name may include “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 annually. If 25% or more of it is foreign-owned, you also file Form 5472.
- If you or your advisor filed Form 8832 or 2553, that election may override the default classification.
What information goes on Form 5472?
The IRS requires details about the company, its foreign owners, and all reportable transactions. For online course businesses, this typically includes contributions from the owner to cover course platform fees, advertising costs, or content creation, and any reimbursements to the owner. Even without student enrollments, these transactions are reportable.
When is Form 5472 due?
The due date is the same as corporate returns. For calendar-year companies, the deadline is April 15, with an extension to October 15 available by filing Form 7004. Form 5472 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 a late or missing filing is $25,000 per year. Additional $25,000 penalties may be added if notices are ignored. These apply even when your business had no course enrollments.
Common questions from course creators
Does the subject I teach matter? No. Whether you teach fitness, coding, or business strategy, the IRS only looks at entity type and ownership.
Do I need to file if no students enrolled? Yes. If you funded the business or reimbursed yourself, those are reportable transactions that require Form 5472.
What if I missed a filing? Bookmate does not usually prepare past years’ filings, but we can guide you on how to address them.
Staying ahead of filing
Track every financial movement between you and the company. For online course businesses, this may include payments for hosting, ad campaigns, or video equipment. Recording these makes filing accurate and straightforward. Filing early also ensures you avoid penalties and have time to respond to IRS questions if needed.
Example for an online course business
A founder in India forms a Wyoming single-member LLC to launch a coding bootcamp platform. In the first year, no students enroll, but he wires $7,500 into the company’s account to pay for hosting, marketing, and video recording tools. Even with no revenue, these transactions are reportable. He must file Form 5472 with a pro forma 1120 to stay compliant and avoid penalties.
How Bookmate helps course businesses
Bookmate specializes in U.S. federal filings for foreign-owned businesses. For online course 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.
- File from within the U.S. so the IRS accepts them on time.
- Provide guidance on how to resolve missed filings if necessary.
We don’t apply for EINs or ITINs directly, but we partner with theitin.com for ITINs and recommend formation companies for EIN support. Our role is making sure your IRS filings are correct and penalty-free.
Final thoughts
Running an online course business through a U.S. entity is common for foreign founders, but IRS compliance is essential. The IRS does not care what you teach—it only cares about your company’s structure.
If you are a foreign owner of a single-member LLC or a corporation, Form 5472 is almost always required. Even without students, filing is necessary if there were owner-related transactions.
Bookmate helps course creators worldwide stay compliant so they can focus on building their programs instead of worrying about IRS deadlines.
Learn more at trybookmate.co or book a consultation today.
