US LLC and form 5472

[NationFree]

Hi all,

I know, there is already some threads related to form 5472, I read a lot of them on this forum, on internet, and I consulted directly some foreign-owner CPA "experts". And the conclusion is that there is not unified response at all and nobody have the "good" answer, neither do the CPAs experts.

Following the advise of an offshore consultant I registered a LLC on NM only for cosmetic pourposes that would not have any activity nor EIN (everybody know an history like that), it was really cheap and easy and from my offshore expert there was not the need to fill any US form, so all right for me. BUT my fault was not get well informed before doing any move. I could use the LLC for my needs, get the EIN and fill the form 5472 each year, it's not difficult but it have a lot of other possible problems like the loss of anonymity if you get the EIN. It's not clear but there is a lot of chance that US will notify your origin country about you and your LLC so... not a valid path while Im EU citizen.

I get this responses from different sources:

INCFILE (chat): not need to fill any form if not EIN and no activity (as my offshore expert said)

CPA 1: Yes, you need to get the EIN and fill form 5472 because the creation, estate fees, and agent is a reportable transaction in Part V, but if you close the LLC this same year no problem, you will not have to fill it next year because the LLC will not exist anymore.

CPA 2: No, you don't need to get EIN nor fill form 5472 because the creation, estate fees, agent are not personal transactions with the LLC

This Forum: Some No, but most Yes, fill, if not you will have a lot of problems and a fine of $25000

So, my conclusion is that if you plan to enjoy the advantages of a US LLC go for it but move to a low taxation country and fill all need forms like 5472 to get IRS happy.

If you are not ready for that, don't register any LLC.

I will close my LLC this same year and I hope CPA 1, CPA 2 and INCFILE are right in this point and if they are not right the IRS have so much work that my LLC creation/dissolution get under his radar as it only was "live" 1 month.

 

[startfleetio]

CPA1 is correct, you need to file. The payment to the company formation provider is reportable. And of course, when you dissolve it too

 

[NationFree]

Yes, I think you are right startfleetio. But it is incredible to see how there are so many different opinions and from so-called experts who are professionals.

This indicate that surely there is a LOT of foreign-owned LLCs without doing form fills correctly or at all so... or IRS is not doing nothing or communication between estates and IRS is not so fluid for created LLCs without EIN or IRS is not strictly enforcing the rule or it only act in clear cases and not in all automatically.

But anyway, as said, it's better to do it well or not do it at all.

 

[RDuke]

My conclusion after read a lot about 5472 form is that is not possible get an anon US LLC due to from creation every operation with partner is reportable

Maybe last opportunity is opening and closing same year but not sure about it

 

[MarkusM]

I searched for an answer to my question , but couldn’t find…. a US LLC which was formed in 2023, what forms does need to fill, and when is the deadline to do it?

 

[DBeker]

just a thought but if your LLC is for cosmetic purposes only, no need for bank account etc. and you don't have an EIN, then maybe you just close this LLC through the proper NM stage channels and then set up a new one, but use a different registrar and also as they never check ID or anything, just use a fake name and fake resident address. This gets you to keep a cosmetic LLC, if you do not have any other 'usage' intent for it. I once had a US LLC (with my real name) in NM, and also had an EIN. but never a bank account and the business never really got started. I closed it down I think just slightly past the 1 year marker, yet I never filed a 5472. Never had any follow ups or anything. My take is that if you never did any business with it and never had a financial transaction, the IRS is not going to waste their time on that. They have bigger fish to fry.

 

[MarkusM]

just a thought but if your LLC is for cosmetic purposes only, no need for bank account etc. and you don't have an EIN, then maybe you just close this LLC through the proper NM stage channels and then set up a new one, but use a different registrar and also as they never check ID or anything, just use a fake name and fake resident address. This gets you to keep a cosmetic LLC, if you do not have any other 'usage' intent for it. I once had a US LLC (with my real name) in NM, and also had an EIN. but never a bank account and the business never really got started. I closed it down I think just slightly past the 1 year marker, yet I never filed a 5472. Never had any follow ups or anything. My take is that if you never did any business with it and never had a financial transaction, the IRS is not going to waste their time on that. They have bigger fish to fry.

What do you mean by ‘cosmetic’ ? How can you use an LLC for cosmetic purposes?