US LLC - questions forms 5472 and 1120

[Mirela35B]

Hello,

I am trying to file the forms 1120 and 5472 for the first time for a foreign, single-owner US LLC - disregarded entity, non-ETBUS. I have a few questions about reportable transactions and address to be declared on these forms.

Form 1120: I understand I only need to fill in the top part of page 1 & provide a mailing address for the business? Or do I also need to fill in any details in Schedule K and G?
Form 5472:
Reportable transactions:

• What are considered “reportable transactions”? Do I need to report all capital contributions: (e.g., company filing fees, registered agent fees, mailing address fees, bank fees, professional indemnity insurance, CPA fees)? Do I also need to report capital distributions (i.e., the money I transferred from my US LLC bank account to my personal bank accounts?
• If my US LLC bank account received payments in Euro, do I need to enter the converted amount from Euro to USD at the exchange rate on the date of the reportable transaction?
• Should I only report transactions that occurred in 2023 (or also those incurred in 2024 concerning income gained in 2023)? For instance, should I only report the transfers from my US LLC bank account to my personal bank account that occurred in 2023, or also any transfers I made in 2024 (for income generated in 2023)? And, if I pay an accountant in 2024 to file these forms for the tax year 2023, is this reportable?
• Field 1f: Do I need to report the sum of capital distributions and contributions?
• Part 1, field 3 – Unsure whether to tick this box as it is a foreign owned US DE but I did not opt for it to be treated as a “corporation” (I did not file 8832 to avoid being taxed in the US).

Personal address
Part 1, fields 1n and 1o, Part II section 4a-e, and Part III 8a ask about country where the reporting corporation files an income tax return, the principle country where business is being conducted, and the personal address of the LLC owner (I suspect one should enter the residential address the owner had in 2023, not in 2024 at the time of filing, right?). How is this dealt with in the case of perpetual travellers with no tax residence, and no long-term rental or utility bill? Is it recommended to declare an address in a previous country of tax residence (Europe)? Or a friends address in a country where I never had tax residence but where I can receive mail? If the IRS needs to contact the US LLC owner, would they send mail to the personal address/trading address reported on these forms? Or at the US mailing address provided for the LLC by the registered agent? I suspect one cannot leave these fields blank and it is not advisable to add a statement on these forms that I am permanently traveling around?

 

[penguin]

Should I only report transactions that occurred in 2023 (or also those incurred in 2024 concerning income gained in 2023)? For instance, should I only report the transfers from my US LLC bank account to my personal bank account that occurred in 2023, or also any transfers I made in 2024 (for income generated in 2023)? And, if I pay an accountant in 2024 to file these forms for the tax year 2023, is this reportable?

I am not an accountant, but it's my understanding the 5472 reports transactions between you (as a foreign entity) and the LLC as a US entity for the year that is being reported.

It sounds like you have a US bank account, are all the transactions running through that, or do the transactions touch your personal foreign/overseas accounts. The part that is unclear to me is how disregarded entities decide what to put on the FBAR (if anything at all). I assume only foreign bank accounts in the name of there LLC are on the FBAR, as opposed to foreign bank accounts in the name of the owner of the disregarded entity. But again, I am not sure. Foreign owned D.E. seem to be in a special uncommon category that is difficult to find information about.

 

[Xshore]

Filling fees are paid by the company. If you paid it from your personal account on behalf of the company then this could be a loan to the company, which is offset against any fee you receive from the company later. This should be clear from the accounting (that you don't file).
You could put this income into the field: "Consideration paid for technical, managerial, engineering, construction, scientific, or like services . . ."
Depending on how long you keep the loan open, and if you charge interest, you might have to file this under "Amounts loaned".

You can write "Small amount under $50.000" for any amount under 50k.