Form 5472 for your LLC’s first year
Short answer: Form 5472 reports transactions between the LLC and its foreign owner, not profit. So “no revenue” isn’t the test. In a first year, paying the formation fees yourself or funding the LLC’s bank account are the kind of transactions the IRS instructions list. The instructions also list exceptions.
By Thibault Chassagnol, founder of 5472Direct
Published
Checked against the IRS Instructions for Form 5472 (Rev. 12/2024).
80% of last season’s filers (95 of 119) were filing for their LLC’s first year. Many asked the same question: “My LLC made no money. Do I still have anything to file?”
Why “no revenue” isn’t the test
Form 5472 reports transactions between the LLC and its foreign owner, not profit. For a foreign-owned single-member LLC, the IRS instructions’ Part V covers “amounts paid or received in connection with the formation, dissolution, acquisition, and disposition of the entity, including contributions to, and distributions from, the entity” (IRS i5472, Part V).
In a first year, that often includes:
- paying the formation and registered-agent fees yourself,
- sending money from your personal account to the LLC’s bank account,
- taking money back out.
The one people miss: the formation fee
One item comes up again and again in our support inbox: the formation fee.
Many founders pay the formation service or registered agent with a personal card, often before the LLC has a bank account. So the payment never appears in the LLC’s bank statements, and a bank import won’t find it.
Last season, about 3 in 4 packets filed through 5472Direct (84 of 112) included a formation-related amount. That’s why our questionnaire asks about it directly. If you’re unsure how a specific amount should be reported, ask a tax professional.
The instructions also list when a reporting corporation is not required to file. One example: it had no reportable transactions of the listed types. Whether that applies to your LLC depends on its actual year. If you’re unsure, that’s a question for a tax professional.
The stakes
The IRS instructions set a $25,000 penalty for failing to file Form 5472 when due and in the manner prescribed.
First-year filing with 5472Direct
- Free eligibility check
- We ask about the formation-year items above in plain language
- Form 5472 + pro forma 1120 for $199, with optional IRS fax delivery for $49
FAQ
My LLC had zero transactions. Do I still file?
What counts as a reportable transaction in year one?
Document preparation only; not tax advice.
