Form 5472 for Hong Kong founders of US LLCs

Hong Kong residents who own a US single-member LLC owe Form 5472 to the IRS each year — the April 15 deadline, the $25,000 penalty for missing it, and the fax-to-Ogden filing method are the same for everyone. Hong Kong's territorial tax system and its offshore profits exemption are separate from the US information-return regime. The two don't interact.

Why HK's offshore profits exemption doesn't help you with the IRS

Hong Kong taxes profits arising in or derived from Hong Kong. Many HK-resident founders successfully claim the offshore profits exemption for their US LLC's income — meaning they pay no HK profits tax. That position is between you and the Inland Revenue Department (IRD).

Form 5472 is a US information return required by the IRS under IRC §6038A. It reports transactions between the US LLC and its related parties (you). It is not an income tax — it generates no US tax liability in most cases for a foreign-owned disregarded LLC with no US-source income. The IRS requires it regardless of the LLC's tax position in any other country. HK's territorial system is irrelevant.

What you actually file with the US

• Form 5472 — information return disclosing reportable transactions with related parties (capital contributions, distributions, loans, reimbursements). Filed even with $0 US revenue because opening the LLC's bank account with a capital contribution is itself a reportable transaction.
• Pro forma Form 1120 — a mostly-blank corporate tax return that serves as the required cover sheet for Form 5472. Mark it "Foreign-Owned U.S. DE" at the top.
• Faxed to: IRS Ogden PIN Unit at +1-855-887-7737.
• Deadline: April 15 (October 15 with a Form 7004 extension).
• FTIN: use your Hong Kong Identity Card number (HKID), or your Inland Revenue number if you have one. Either works as a FTIN.

US income tax — do you owe any?

For a HK-resident owner of a US disregarded LLC whose income comes from non-US clients: no US income tax in most cases. The LLC is disregarded, so its income flows to you, a non-US person. If that income is not "effectively connected" with a US trade or business, it's not subject to US income tax. Most HK founders running a SaaS, e-commerce, or consulting business with no US physical presence have no US tax liability — only the Form 5472 information-return obligation.

HK IRD — do you disclose the US LLC?

HK doesn't require a general "foreign assets" disclosure like India does, but if you're claiming the offshore profits exemption at the IRD, the LLC's existence and its income will come up as part of the profits-tax return. Consult a HK tax adviser on how to present the US LLC structure in your HK profits-tax filing, especially if you have HK clients or staff.

FBAR — does the LLC owe one?

FBAR (FinCEN Form 114) applies to US persons with signature authority over foreign accounts above $10,000. A US LLC owned entirely by a non-US person is a US person for FBAR purposes. If your US LLC opens a HK bank account (e.g. a HK dollar account at HSBC HK or ZA Bank) and the balance exceeds $10,000 at any point in the year, the LLC likely owes an FBAR. Most founders bank entirely in the US (Mercury, Wise USD) and are not affected.

Conservative summary for HK founders

• File Form 5472 + pro forma 1120 each April 15. Fax to +1-855-887-7737.
• HK offshore profits exemption doesn't waive the IRS filing.
• No US income tax in most cases (no ECI, no PE).
• Use your HKID number as the FTIN on Form 5472.
• FBAR only applies if the LLC has non-US bank accounts over $10k.
• Snapfile files your Form 5472 for $89 — 12 questions, faxed to Ogden the same day.