SERVICES • TAX & LEGAL
If you have a single-member LLC, the Nonresident Investor team will help you file the 5472 form for disregarded entities.
5472: For Foreign-Owned Single-Member LLCs
Unlike the 1040NR and 1065, the 5472 form isn’t something that every nonresident investor has to file. However, if you opt to make your real estate investment through a single-member LLC, then the 5472 form will be one of the essential forms for you.
Alongside the 5472 form, you’ll also have to file the pro-forma 1120 form, also known as the US Corporation Income Tax Return. This form helps corporations (and LLCs filing as corporations) to calculate their own tax liability (or how much tax their business owes to the state).
Of course, just like with everything else (including opening and running the single-member LLC), the Nonresident Investor will help you fill out and file this form.
What Is the 5472 Form?
Your single-member LLC is a disregarded entity. In other words, because you’re the only member of your business, the IRS doesn’t see the LLC and you as two separate entities.
Instead, the IRS and the state see you as one and the same.
As a disregarded entity, you must file the 5472 every year and state your:
- Changes in structure, and
- Potential changes in ownership.
How the Nonresident Investor Team Can Help
Filing the 5472 can seem neverending and tedious. However, it’s vital that you file it right. Although you can file again if you make a mistake, doing that does mean drowning yourself in paperwork and negotiating with the IRS.
That’s why the Nonresident Investor team is here! Our exceptional CPAs and our legal team will ensure that all your tax forms are filled out on time and with no errors. That’s a Nonresident Investor guarantee!
If you opt to open a single-member LLC, then you’ll have to file a 5472 Form at the end of the year. This form is only used by “disregarded entities” or single-member LLCs that the IRS doesn’t see as separate entities from their owners.
In other words, for taxation purposes, the IRS views single-member LLCs are the same entities as their owners. Due to that, all single-member LLC owners have to file a 5472 form that lists all the monetary transactions that their business made during the previous year.
Owners are also required to report all ownership and other structural changes to their LLCs in their annual 1065.
Our services were created to assist investors in navigating the complex real estate market, covering everything from LLC formation to property management based on years of experience in the industry.