My single-member LLC made no money this year. Do I still need to file taxes for it?

A wholly foreign-owned U.S. single-member disregarded LLC generally files Form 5472 with a pro forma Form 1120 for a year in which it had reportable transactions. The trigger is the transaction, not revenue.

Formation, contributing capital, owner-paid LLC costs, distributions, loans, and dissolution can be reportable. The current IRS instructions also provide an exception when there were no transactions reportable in Parts IV, V, or VI, so reconstruct the actual activity instead of using a blanket 'always' or 'never' rule.

The $25,000 penalty for failure to file Form 5472 applies per form, per year — and it has nothing to do with whether your LLC made money. The IRS does not waive this penalty because you had no revenue. Many foreign LLC owners have learned this lesson the hard way.

The penalty can escalate: if the IRS sends a notice and you fail to respond within 90 days, an additional $25,000 penalty applies for each 30-day period the failure continues.

Your LLC is a disregarded entity, so you file Form 5472 attached to a pro forma Form 1120. 'Pro forma' means the 1120 is filed with zeros in most fields — it serves as a cover sheet for the Form 5472.

The due date is April 15 (for calendar year filers), with an automatic 6-month extension available by filing Form 7004. You can prepare and file this yourself using a self-service tool or work with a tax professional.