A way to remember it
Money and ownership coming in to the US
A foreign person has bought into, or built, an American entity. The United States wants to know what passes between that American entity and its foreign connections.
The filer is the US entity.
Ownership going out from the US
A US person holds an interest in a corporation outside the United States. The United States wants to know about that foreign corporation's affairs.
The filer is the US person.
Side by side
| Form 5472 | Form 5471 | |
|---|---|---|
| Direction of ownership | Foreign owns American | American owns foreign |
| Who files | The US reporting corporation, or the foreign-owned US disregarded entity | The US person who is an officer, director or shareholder |
| What it reports | Transactions between the US entity and foreign related parties | Information about the foreign corporation, including its income and balance sheet |
| Attached to | The entity's income tax return, or a pro forma Form 1120 | The US person's own income tax return |
| Trigger | 25% foreign ownership, or a foreign-owned DE, plus a reportable transaction | Meeting one of the filing categories by ownership or control |
| Statutory penalty | $25,000 per form, per year | A lower initial amount per form, per year, plus possible foreign tax credit reduction |
| Typical filer | Non-US founder's US LLC | US expatriate or US company with a foreign subsidiary |
| Complexity | Moderate — mostly identification and transaction totals | High — multiple schedules, financial statements, income categories |
Swipe the table sideways to see all columns
The three-question test
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Where is the entity registered?
In a US state → the 5472 family. Outside the United States → the 5471 family.
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Who owns it?
US entity with a foreign owner at 25% or more, or wholly foreign-owned and disregarded → Form 5472. Foreign corporation with a US person holding an interest → possibly Form 5471.
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Who would be doing the filing?
The US entity itself → Form 5472. A US individual or US company, on their own return → Form 5471.
For the typical reader of this site
You live outside the United States, you are not a US citizen or US resident, and you formed a Delaware or Wyoming LLC to take payments. Your entity is American, your ownership is foreign, and the filing is made by the LLC. That is Form 5472, and Form 5471 has nothing to do with you. Confirm with the free check →
Worked examples
A UK founder with a Wyoming LLC
Facts: British citizen and UK resident, sole owner of a Wyoming LLC used to invoice US clients through Stripe. No US presence, no election filed.
Analysis: the entity is American and the owner is foreign, so the LLC is a foreign-owned disregarded entity. The initial funding transfer is a reportable transaction.
Result: Form 5472, filed by the LLC with a pro forma Form 1120. No Form 5471.
A US citizen living in Portugal with a Portuguese company
Facts: American citizen, tax resident in Portugal, sole shareholder of a Portuguese limited company.
Analysis: the owner is a US person and the corporation is foreign, which is the 5471 direction. US citizens remain within the US tax system regardless of where they live.
Result: likely Form 5471 with the owner's Form 1040, and potentially related regimes such as GILTI and Subpart F. Nothing to do with Form 5472, and firmly professional territory.
An Indian founder whose Singapore company owns a Delaware LLC
Facts: Indian resident owns a Singapore private limited company, which owns a Delaware LLC. The founder funded the Delaware LLC through the Singapore company.
Analysis: the Delaware LLC is wholly owned — indirectly — by one foreign person, so it is a foreign-owned disregarded entity. Ownership through an intermediate foreign entity still counts. No US person holds an interest in the Singapore company, so no Form 5471 arises.
Result: Form 5472 for the Delaware LLC. Part II and Part III describe the Singapore company as the owner and related party. Home-country rules in India and Singapore are separate questions for local advisers.
A US corporation with a foreign shareholder and a foreign subsidiary
Facts: a Delaware C corporation, 40% owned by a German company, which itself owns a Mexican subsidiary.
Analysis: ownership runs in both directions. The German shareholder crosses the 25% threshold, so transactions with it are reportable on Form 5472. The Delaware corporation is a US person holding an interest in a foreign corporation, which is the Form 5471 direction.
Result: potentially both. Structures like this are outside what document-preparation software should be used for — engage a professional.
Why the confusion is so persistent
- The numbers are one digit apart and both are "international information returns", so they appear together in search results and in half-remembered advice.
- Both are attachments rather than standalone filings, so both get described as "the extra form you attach".
- Both carry large fixed penalties, so both are discussed in the same alarmed tone.
- Advice is often given without asking the direction question. A founder who says "I have a foreign company" may mean foreign to the US or foreign to themselves — opposite answers.
- Formation agents sometimes get it wrong, and a confident wrong answer is more persuasive than an uncertain right one.
Related forms in the same family
- Form 8858 — for US persons with foreign disregarded entities or foreign branches
- Form 8865 — for US persons with interests in foreign partnerships
- Form 1120-F — the income tax return of a foreign corporation with US activity
- Form 8832 — the entity classification election, which changes whether an LLC is disregarded at all
If 5472 is the one
Draft it in about ten minutes
Plain questions, then your completed Form 5472 and pro forma Form 1120 on screen — free to read in full before you decide about the print-ready files.
Prepare my Form 5472Not sure yet? Run the free eligibility check first
Questions
What is the difference between Form 5472 and Form 5471?
The direction of ownership. Form 5472 is filed by a US entity that is 25% or more foreign-owned, or by a foreign-owned US disregarded entity, to report transactions with foreign related parties. Form 5471 is filed by US persons who are officers, directors or shareholders of certain foreign corporations, to report information about that foreign corporation. In short: 5472 is foreign owning American, 5471 is American owning foreign.
Which form does a non-US owner of a US LLC file?
Form 5472, filed by the LLC rather than by the owner personally. A US LLC treated as a disregarded entity and wholly owned by one foreign person files Form 5472 attached to a pro forma Form 1120 for each tax year with a reportable transaction. Form 5471 is not relevant, because the entity being reported on is American rather than foreign.
Can I have to file both Form 5472 and Form 5471?
Yes, in structures with ownership running in both directions. A US corporation with a 25% foreign shareholder that itself owns a foreign subsidiary could have Form 5472 obligations for its dealings with the foreign shareholder and Form 5471 obligations for the foreign subsidiary. Structures like that need professional handling rather than software.
Which penalty is bigger, Form 5472 or Form 5471?
They are different regimes. The Form 5472 penalty is $25,000 per form per year with continuation amounts after IRS notice. Form 5471 carries a lower initial statutory amount per form per year, also with continuation amounts, and failure can additionally reduce foreign tax credits. Both are serious, and both can extend the assessment period for the related tax year.
Is Form 5471 relevant to my foreign holding company that owns my US LLC?
Not for you as a non-US person. Form 5471 is an obligation of US persons who hold interests in foreign corporations. If neither you nor any other US person holds an interest in your foreign holding company, no Form 5471 arises from it. The US LLC underneath it may still have a Form 5472 obligation, because ownership by one foreign person can be indirect.
I filed a Form 5471 by mistake. What should I do?
Filing a form that was not required is generally not itself penalised, but it does not discharge the obligation you actually had. The important step is to file the correct form for each year it was due. If a wrongly filed form has already produced IRS correspondence, get professional help with the response rather than sending further filings blind.
Scope & limitations
This page is general educational information and is not tax, legal or accounting advice. It summarises the broad distinction between two reporting regimes and does not describe every filing category, exception or related requirement — in particular, the Form 5471 rules are considerably more detailed than this comparison conveys, and this site does not provide guidance on completing that form.
Content reflects the IRS Form 5472 and its instructions as reviewed in 2026. Verify against IRS.gov and consult a qualified US tax professional, especially where ownership runs in both directions.