Inbound International Tax

TAX COMPLIANCE FOR FOREIGN-OWNED U.S. BUSINESSES

For foreign companies and foreign individuals doing business or investing in the United States.

When a foreign person owns a U.S. company, or a foreign company earns income in the U.S., the IRS adds reporting on top of the normal business return — and the penalties for missing it are high. At Victoria Bogdanovich CPA, we prepare U.S. returns and information forms for foreign-owned businesses and their owners.

Who this is for

• U.S. corporations that are 25% or more foreign-owned
• U.S. single-member LLCs owned by a foreign person or company
• Foreign corporations with a U.S. office, employees, or business income
• Foreign founders who formed a Texas or Delaware company

What we handle

• Form 5472 — reporting transactions between a U.S. company and its foreign owners or related parties
• Pro forma Form 1120 with Form 5472 — required for foreign-owned single-member LLCs, even with no income
• Form 1120-F — U.S. income tax returns for foreign corporations
• Form 1120 — for U.S. subsidiaries of foreign groups
• Withholding and treaty forms — W-8 series, 1042 and 1042-S, and treaty positions
• Texas franchise tax and other state filings

Why it matters

Form 5472 penalties start at $25,000 per form, per year. They apply even when the company owes no tax, and even when it had no activity beyond being funded.

A foreign-owned LLC isn’t “invisible.” A single-member LLC that’s disregarded for income tax still has to file a pro forma return to report its foreign owner.

Related-party transactions need records. Loans, capital contributions, and fees between the U.S. company and its owners are reported and need documentation.

How it works

1. Check your fit — about 1 minute. Answer a few questions and see your starting fee.
2. Create your client portal account and complete our Client Application.
3. Meet with us — free Tax Discovery Zoom meeting. Upload your last two years of returns at least 24 hours before the meeting so we can discuss an estimated fee range on the call.
4. Receive your engagement package with your estimated fee and scope of work. Work begins once you sign.

Starting price

Returns for foreign-owned U.S. businesses start at $3,500. The final fee depends on your company’s structure and records. Your engagement package sets out your estimated fee and what it covers. Work outside that scope is billed separately.

See your starting fee

Frequently asked questions

My LLC had no income. Do I still need to file?
If it’s owned by a foreign person, usually yes — a pro forma Form 1120 with Form 5472 is required each year it exists.

I missed Form 5472 for past years. What should I do?
Don’t file late forms without a plan. There are ways to reduce penalties, and the order matters. Start with a paid Initial Consultation.

Do you need a U.S. tax ID for the owner?
Often yes. We’ll tell you which ID is needed and help with the application process.

See also Foreign Investment in the U.S. and C Corporation Owners.

Ready to see where you fit? Take the 1-minute fit check or see our pricing and how it works.