Country guide

Form 5472 for Indian-Owned US LLCs (2026)

Quick answer

If you're an Indian founder with a US single-member LLC, you generally must file Form 5472 + a pro-forma 1120 every year, even with no profit and no US tax. Failing to file Form 5472 when due and in the manner prescribed carries a $25,000 penalty.[1] There is a US–India tax treaty, but that's a separate question from this filing duty; and you should confirm the Indian-side reporting (Schedule FA, etc.) with a CA. (US filing: HIGH. India side: NEEDS LOCAL EXPERT REVIEW.)

Key facts

  • A foreign-owned U.S. disregarded entity has no income tax return filing requirement of its own, but must still file a pro forma Form 1120 with Form 5472 attached by that Form 1120's due date.[2]
  • Failing to file Form 5472 when due and in the manner prescribed carries a $25,000 penalty.[1]
  • US–India treaty exists (affects tax, not the filing duty). HIGH
  • Indian foreign-asset disclosure (ITR Schedule FA) and double-tax interaction. Confirm with a CA. NEEDS LOCAL EXPERT REVIEW

What this means for you (India)

Budget for the annual 5472 filing as a fixed cost of owning the LLC, separate from whether you owe US tax. On the India side, ask your CA about disclosing the foreign LLC in Schedule FA and how the DTAA and foreign tax credits apply.

Frequently asked questions

Do I file 5472 even with no income?

Generally yes. HIGH

Does the India treaty remove the filing?

No, treaty affects tax, not this information return. HIGH

What do I tell my CA?

Schedule FA disclosure + DTAA/foreign-tax-credit treatment.

Sources used

  • IRS, Instructions for Form 5472: irs.gov · IRS Treaties A–Z (India listed)
  • RBI/Income Tax Dept (India block, reviewed by a CA)

Sources

  1. [1]Internal Revenue Service, Instructions for Form 5472 (12/2024) — A penalty of $25,000 will be assessed on any reporting corporation that fails to file Form 5472 when due and in the manner prescribed. (retrieved )
  2. [2]Internal Revenue Service, Instructions for Form 5472 (12/2024) — While a foreign-owned U.S. DE has no income tax return filing requirement, as a result of final regulations under section 6038A, it will now be required to file a pro forma Form 1120, U.S. Corporation Income Tax Return, with Form 5472 attached by the due date (including extensions) of that Form 1120. (retrieved )

Related

Whether you owe US tax and India-side reporting depend on your facts. Confirm with a US CPA and an Indian CA. See the India guide and Form 5472 guide.

Last updated: September 1, 2026.

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