US Tax Preparation Services
Market Express coordinates US tax preparation for foreign-owned LLCs. Our Service Partners handle Form 5472, Form 1120, and transfer pricing documentation to ensure IRS compliance.
Foreign-Owned LLC Tax Requirements
If your US LLC is 25%+ foreign-owned, you must file annual tax returns with the IRS, even if your LLC has zero income or losses. Failure to file results in severe penalties.
- Form 5472: Information Return of Foreign-Owned US Corporation (required annually)
- Form 1120: US Corporation Income Tax Return (pro forma filing required even with $0 income)
- Penalty for Non-Filing: $25,000 per form per year, plus criminal penalties
- Due Date: 15th day of 4th month after tax year end (April 15 for calendar year filers)
What Tax Services We Coordinate
- IRS Form 5472 - Information Return of Foreign-Owned US Corporation
- IRS Form 1120 - US Corporation Income Tax Return (pro forma)
- Transfer pricing documentation and arms-length analysis
- Intercompany transaction reporting
- State tax return filing (if applicable)
- Extension filing (Form 7004) if needed
- Tax planning and strategy consultation
- IRS correspondence and audit support
Understanding IRS Form 5472
Form 5472 is the Information Return of a 25% Foreign-Owned U.S. Corporation or a Foreign Corporation Engaged in a U.S. Trade or Business. It reports all transactions between your US LLC and related foreign parties (such as your foreign parent company).
Reportable Transactions Include:
- • Sales of inventory and products
- • Purchases from related foreign parties
- • Service fees paid or received
- • Rent payments
- • Royalty or license fees
- • Loans and interest payments
- • Loan guarantees
- • Any other monetary exchange
Understanding IRS Form 1120
Form 1120 is the US Corporation Income Tax Return. Even if your disregarded LLC has no US tax liability (because income is reported on your foreign tax return), you must file a "pro forma" Form 1120 to attach Form 5472.
Important: Single-member LLCs owned by foreign persons are treated as "disregarded entities" for US tax purposes but are treated as corporations for Form 5472 reporting. This is why you file Form 1120 (corporate return) even though you're not actually taxed as a corporation.
Tax Preparation Process
Gather Financial Records (January - February)
Collect all financial records: sales, purchases, expenses, bank statements, and intercompany transaction details
Service Partner Review (February - March)
Tax professional reviews records, prepares Form 5472 and Form 1120, calculates any tax liability
Client Review & Approval (March)
You review prepared returns, ask questions, approve for filing
IRS Filing (By April 15)
Returns filed electronically with IRS before deadline. Extensions available if needed (Form 7004).
Annual Tax Filing Timeline
- December 31: Tax year ends (for calendar year filers)
- January - February: Gather financial records and send to tax preparer
- February - March: Tax preparer prepares returns
- April 15: Filing deadline for Form 1120 and Form 5472 (or file extension)
- October 15: Extended filing deadline (if extension filed)
Tax Preparation Pricing
Pricing varies based on transaction complexity, number of intercompany transactions, and state filing requirements. Below are typical ranges:
Basic Filing
Form 5472 + Form 1120 (pro forma)
- • Simple transaction structure
- • Few intercompany transactions
- • No state filing requirements
- • No transfer pricing study needed
Complex Filing
Complete tax package with analysis
- • Multiple intercompany transactions
- • Transfer pricing documentation
- • State tax returns (multiple states)
- • Tax planning and consultation
Documents You Need to Provide
- LLC Formation Documents: Certificate of Formation, Articles of Organization, EIN letter
- Financial Statements: Profit & loss statement, balance sheet (year-end)
- Bank Statements: US bank account statements for full tax year
- Intercompany Invoices: All invoices between US LLC and foreign parent company
- Transfer Pricing Documentation: Arms-length pricing analysis (if applicable)
- Foreign Owner Information: Name, address, tax ID number, ownership percentage
Important Information
- Service Partner Delivery: Tax preparation is performed by licensed CPAs and EAs (Enrolled Agents), not Market Express directly
- Not Legal/Tax Advice: Market Express coordinates services but does not provide legal or tax advice
- Annual Requirement: Tax returns must be filed every year your LLC exists, even with $0 income
- Extensions Available: Form 7004 provides 6-month extension (to October 15) but payment is still due April 15
- State Taxes: Some states require separate state tax returns even if federal return shows no income
Ready to Stay Compliant?
Market Express coordinates US tax preparation for foreign-owned LLCs. Our Service Partners ensure you meet all IRS filing requirements and avoid costly penalties.