Form 5472 for German founders of US LLCs

German residents (Steuerinländer) who own a US single-member LLC owe Form 5472 to the IRS each year. The Germany-US tax treaty (DBA Deutschland-USA) governs double taxation on income — but Form 5472 is an information return, not a tax, so the treaty doesn't waive it. Filing is annual, by April 15, faxed to the IRS Ogden PIN Unit.

The US filing obligation in plain German-founder terms

• Was du einreichst: Form 5472 attached to a pro forma Form 1120, faxed to the IRS Ogden Service Center.
• Frist: 15. April jedes Jahres (Verlängerung bis 15. Oktober möglich mit Form 7004, eingereicht bis zum 15. April).
• Strafe bei Nichteinreichung: USD 25,000 pro Formular pro Jahr (IRC §6038A).
• FTIN: your German Steueridentifikationsnummer (Steuer-ID) — the 11-digit number you received from Bundeszentralamt für Steuern. This goes in the "Foreign Tax Identification Number" field on Form 5472.
• SSN/ITIN not required: German residents without a US tax ID can file Form 5472 using the German Steuer-ID as the FTIN.

Germany-US tax treaty — what applies to LLC owners

The Germany-US tax treaty allocates taxing rights on business profits to the country where the business has a "permanent establishment" (Betriebsstätte). For a German-resident founder whose US LLC does business with non-US clients and has no US office, employees, or physical presence:

• US income tax: generally none on business profits — the LLC has no US permanent establishment, so profits are taxable only in Germany.
• Form 5472: not waived by the treaty. The information return is required regardless of the income-tax position.
• German-source clients: if the LLC invoices German clients but has no German Betriebsstätte, the income is taxed in Germany under your German Einkommensteuer (Anlage AUS for foreign income).

German tax reporting for the US LLC

Germany taxes its residents on worldwide income (Welteinkommensprinzip). The US LLC's profits flow to you as a sole owner. Key German reporting points:

• Einkommensteuererklärung (Anlage G or Anlage S): the LLC's net profit is treated as either Gewerbeeinkünfte (Anlage G) or Einkünfte aus selbstständiger Arbeit (Anlage S) depending on the nature of the business. Consult a Steuerberater for classification.
• AStG (Außensteuergesetz — foreign tax law): Germany's controlled foreign-entity rules may apply if the LLC's income is categorized as "passive income" (Zwischeneinkünfte). Active business income typically escapes CFC treatment. Get advice if the LLC holds investments or earns primarily interest/royalties.
• Freistellungsmethode vs. Anrechnungsmethode: under the treaty, business profits without a US PE are typically exempt from German tax via the Freistellungsmethode — they're excluded from the tax base, not credited. This depends on the exact income type and treaty article.
• Gewerbesteuer: if you operate the LLC from Germany with German clients and staff, the LLC may have a German Betriebsstätte and owe German Gewerbesteuer. Most solo founders with a US LLC and no German physical establishment are not affected.

Common structures and their US filing implications

• Freelancer / Freiberufler using a US LLC (e.g. software developer, designer, consultant with US clients): US LLC is disregarded → you as owner get US-source income → treaty article 14 or 7 typically protects it from US income tax if no PE. Form 5472 still required.
• E-commerce via US LLC: LLC holds Stripe / Shopify / Amazon seller account. No US employees. Treaty protects from US income tax. Form 5472 required.
• SaaS product: same as e-commerce scenario. Form 5472 required.

Conservative summary for German founders

• File Form 5472 + pro forma 1120 by April 15. Fax to the IRS Ogden PIN Unit. Snapfile handles this for $89.
• Use your 11-digit Steuer-ID as the FTIN on the form.
• Germany-US treaty typically prevents US income tax on business profits — but doesn't waive Form 5472.
• German side: report LLC profits in Anlage G or S; consult a Steuerberater on AStG applicability and Freistellungsmethode treatment.
• Missing years: catch up under DIIRSP before the IRS contacts you ($25,000 per-year penalty otherwise).