If you run a social media marketing agency through a U.S. company but live abroad, you may be wondering if you need to file Form 5472 with the IRS. The answer has nothing to do with whether you manage Instagram ads, TikTok campaigns, or YouTube growth. 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, Form 5472 is required. If your agency is a multi-member LLC taxed as a partnership, Form 5472 usually 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 without clients must still file. We’ll also walk through an example specific to social media marketing and explain how Bookmate helps you stay compliant.
What is Form 5472?
Form 5472 is an information return that tells the IRS about cross-border transactions between your U.S. company and its foreign owner. It doesn’t calculate taxes due, but it is required so the IRS can track capital contributions, reimbursements, and other payments.
If your agency is foreign-owned, and you are operating through a single-member LLC or corporation, Form 5472 almost certainly applies.
For social media agencies, common reportable transactions include wiring money from abroad to cover ad spend, paying for design tools, or reimbursing yourself for costs. Even if your agency had no paying clients, these transfers mean you still must file.
Who must file Form 5472?
The filing obligation depends on entity type:
- A foreign-owned single-member LLC must file Form 5472 attached to a pro forma Form 1120.
- A U.S. corporation with 25% or more foreign ownership must file Form 5472 attached to 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 service, you may not know for sure. Here are some ways to tell:
- If you formed an LLC with only one owner, you likely have a single-member LLC. Your EIN confirmation letter may show your name followed by “Sole Mbr,” or describe the entity as a “disregarded entity.”
- If you formed an LLC with more than one owner, you probably have a multi-member LLC. In this case, the 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 (such as a Delaware C-Corp), you must file Form 1120 each year. If foreign shareholders own at least 25%, you also need Form 5472.
- If you ever filed Form 8832 or 2553 to change tax classification, that election overrides the defaults.
What information goes on Form 5472?
The IRS asks for your company’s details (name, address, EIN, state of formation), the foreign owner’s information (name, country, ownership percentage), and a record of transactions. For social media agencies, these might include contributions from the owner to pay for ad campaigns, software subscriptions, or contractors.
Even if your agency had no client revenue, these are still reportable.
When is Form 5472 due?
The deadline is the same as corporate returns. For calendar-year companies, it is due April 15, with an extension to October 15 available by filing Form 7004. Form 5472 must always be attached to a return—either a pro forma Form 1120 (for single-member LLCs) or a full Form 1120 (for corporations).
The IRS penalty for missing or filing late is $25,000 per return, per year. Ignoring IRS notices can result in additional $25,000 penalties. These apply even if your agency had no income.
Common questions social media agency founders ask
Does it matter what platforms I work on? No. Whether you manage Facebook ads or TikTok campaigns, the requirement depends on ownership and entity type.
Do I need to file if I had no clients? Yes. If you transferred funds into the company or reimbursed yourself, those count as reportable transactions.
What if I already missed a filing? Bookmate does not typically prepare past years’ filings, but we can guide you on how to approach resolving them.
Staying ahead of filing
Keep records of all transactions between you and the company. For social media agencies, this might include ad spend contributions, design tool subscriptions, and payments to contractors. Tracking these ensures accurate reporting and makes Form 5472 preparation smoother.
Filing early helps you avoid last-minute stress and penalties.
Example for a social media marketing agency
A founder in Argentina forms a Delaware single-member LLC to run a TikTok marketing agency. In the first year, she has no paying clients, but wires $8,000 from her personal account to pay for ad credits and content creation tools.
Even without client revenue, these transactions are reportable. She must file Form 5472 with a pro forma 1120 to stay compliant and avoid the $25,000 penalty.
How Bookmate helps social media agencies
Bookmate specializes in U.S. federal filings for foreign-owned companies. For social media agencies, 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 made from within the U.S. so they are accepted on time by the IRS.
- Provide guidance on how to approach past filings if you’ve missed any.
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 federal IRS filings are accurate, complete, and penalty-free.
Final thoughts
Whether you run a social media agency, a SaaS business, or an import/export company, the IRS doesn’t care what you sell. It only cares about your company structure. If you’re a foreign owner of a single-member LLC or corporation, Form 5472 is almost always required.
Even with no clients or revenue, filing is necessary if there were owner-related transactions.
Bookmate helps agency owners worldwide meet these filing requirements, so you can focus on growing your clients’ reach instead of worrying about the IRS.
Learn more at trybookmate.co or book a consultation today.
