A lot of foreign founders form a U.S. LLC, get their state paperwork, and then wait on opening a U.S. bank account. Sometimes it’s because traveling to the U.S. is difficult, other times it’s because banks ask for more documents than expected. Naturally, the question comes up: If my LLC doesn’t have a U.S. bank account, do I still need to file Form 5472? The answer is yes. Not having a bank account does not remove your federal filing obligations.
This article explains why Form 5472 is still required, what counts as a reportable transaction, and how to stay compliant even if your LLC never opened a bank account.
What Form 5472 is and why it matters
Form 5472 is an information return the IRS uses to track transactions between a U.S. entity and its foreign owners. For foreign-owned single-member LLCs, the form is filed along with a pro forma Form 1120. The filing is required every year, even if the company had no sales or clients. The penalty for not filing is steep—$25,000 per year, per entity.
The purpose of Form 5472 is transparency. The IRS wants to know when money is moved in or out of the company, even if it’s just the owner putting in money or paying expenses. Whether or not a bank account exists, the filing obligation still does.
Does having no bank account mean no activity?
Some founders assume that if their LLC never opened a bank account, then there are no transactions to report. But this isn’t always true. Activity isn’t limited to what passes through a U.S. bank account. For IRS purposes, a “reportable transaction” includes any movement of money, property, or obligations between the LLC and its foreign owner.
For example, if you paid the Wyoming or Delaware annual fee with your personal card, that counts as the owner paying an expense for the company. If you advanced money directly to cover a cost, that also counts as an owner contribution. Even reimbursing yourself or paying for services on behalf of the LLC from abroad can trigger reporting.
In other words, you don’t need a U.S. bank account for reportable transactions to exist. They can happen through foreign accounts, credit cards, or even in-kind contributions.
When might an LLC truly have zero activity?
There are rare cases where a newly formed LLC truly does nothing in its first year. Imagine you form your Wyoming LLC in December, but you don’t get an EIN, you don’t put in any money, you don’t pay any expenses, and you don’t transact at all. In that narrow situation, there may be no reportable transactions to list on Form 5472.
But the safer practice is still to file. Even if your form shows “zero activity,” filing keeps your record clean and avoids questions from the IRS later.
Most of the time, however, foreign founders do something that counts as activity, even if they didn’t realize it at the time. That’s why assuming you don’t need to file is risky.
Why the IRS cares, even without a bank account
The IRS isn’t only interested in income. It is interested in the flow of money between U.S. entities and foreign owners. Bank accounts are just one way money moves. Owner contributions, expense payments, and loans are others. The IRS requires disclosure to prevent underreporting or hiding of money flows. That’s why Form 5472 is mandatory for foreign-owned single-member LLCs, regardless of how “inactive” the owner thinks the company was.
Not filing because you assume “no bank account = no activity” can backfire badly. If the IRS later sees that expenses were paid, even something as simple as the $60 Wyoming fee, it can issue a $25,000 penalty. Proving that you had no reportable transactions is often harder than just filing the form.
Example: A founder with no U.S. bank account
Take the example of a founder in South Africa who sets up a Wyoming single-member LLC in June. She struggles to open a U.S. bank account, so she pays the Wyoming annual fee from her personal account abroad. She also pays for a website subscription in the company’s name using her personal credit card. From her perspective, the LLC has “no activity” since there’s no U.S. bank account.
But in reality, there were two reportable transactions: paying the annual fee and paying the subscription. Both must be disclosed on Form 5472. If she skips the filing, the IRS can assess a $25,000 penalty.
What happens if you don’t file
If you don’t file Form 5472 when required, the IRS automatically assesses a $25,000 penalty. If the noncompliance continues after notification, additional penalties can apply. These penalties can quickly exceed the actual money ever put into the LLC. Once penalties are assessed, they are very difficult to remove unless you can show “reasonable cause,” which is a high standard to meet.
This is why even founders who believe their LLC was inactive should err on the side of filing. Filing with zero transactions is safe. Not filing and being wrong is expensive.
What if my LLC never got an EIN?
Some foreign founders stop at the formation step and never apply for an EIN. Without an EIN, you can’t open a bank account or file with the IRS. This doesn’t mean you’re off the hook. The LLC still exists in the eyes of the IRS, and technically the filing obligations begin the year it is formed. Without an EIN, you are essentially stuck—you can’t comply, but you’re still expected to.
This is why Bookmate strongly advises getting an EIN as soon as possible. Without it, your LLC is essentially a useless shell.
How to file correctly
To stay compliant, you’ll need to:
- Get an EIN if you don’t already have one.
- Prepare bookkeeping records, even if minimal, to track contributions and expenses.
- File Form 5472 with a pro forma 1120 by April 15 of the following year (extensions available to October 15).
Bookmate helps foreign founders through this process by identifying reportable transactions, preparing the filings, and submitting them on time. We also provide guidance if you’re missing past filings, although we do not prepare back years directly—we can point you in the right direction.
How Bookmate helps
Bookmate specializes in federal tax compliance for foreign-owned companies. We make sure that even if you never opened a U.S. bank account, your filings are done correctly. We:
- Review your transactions to determine what needs to be reported.
- File Form 5472 with a pro forma 1120 for foreign-owned single-member LLCs.
- Handle Form 1065 and 1120 filings for other entity types.
- Provide deadline reminders so you never miss a filing.
If you’re unsure whether your LLC needs to file Form 5472 this year, it’s safer to assume yes and talk it through with a professional. You can book a consultation here to make sure you’re compliant.
Final thoughts
Not having a U.S. bank account does not exempt you from filing Form 5472. Activity can happen in other ways—through paying fees, funding expenses, or contributing money from abroad. The IRS expects these transactions to be reported, even if no revenue was earned and no bank account was ever opened. Missing the filing leads to penalties that far exceed the cost of compliance.
Bookmate helps foreign founders avoid these pitfalls by handling the filings for you. That way, you can focus on building your business, knowing that even without a U.S. bank account, your LLC stays fully compliant.
Learn more at trybookmate.co or book a consultation today.
