Form 5472 for Indian founders of US LLCs

Indian tax residents who own a US single-member LLC owe Form 5472 to the IRS each year — regardless of whether the LLC earned income, regardless of whether the profits are "offshore" for Indian tax purposes, and regardless of the India-US tax treaty. The treaty addresses double-taxation on income; Form 5472 is an information return, not a tax, so treaties don't touch it.

This guide is written for Indian nationals (resident or NRI) running a Wyoming / Delaware / NM LLC. The US filing side is the same as for any non-US owner; the Indian side introduces its own reporting obligations on top.

The US side — Form 5472 + pro forma Form 1120

• Who files: every foreign-owned US single-member LLC with any reportable transaction with a related party — including the initial capital contribution you made to open the LLC's bank account.
• Deadline: April 15 each year for calendar-year LLCs (October 15 with a Form 7004 extension). See Form 5472 deadlines and extensions.
• How it's filed: faxed to the IRS Ogden PIN Unit at +1-855-887-7737. E-filing is not available for foreign-owned disregarded LLCs.
• Penalty for missing it: $25,000 per form per year (IRC §6038A). Voluntary catch-up under DIIRSP with a reasonable-cause statement typically avoids the penalty.
• FTIN field: Form 5472 asks for the foreign owner's tax ID. For Indian residents, this is your PAN (Permanent Account Number) — enter it in the FTIN field on Form 5472. If you have no FTIN, write "AppliedFor."

Common question: does the offshore profits exemption in India affect Form 5472?

No. India's treatment of the US LLC's profits for Indian income tax is entirely separate from the US information-return obligation. Even if the LLC's profits are not taxed in India (because they're treated as foreign-source income not remitted, or any other Indian tax position), the LLC still owes Form 5472 to the IRS. The two regimes don't interact.

The India-US tax treaty — what it does and doesn't do for you

The India-US tax treaty (1989) primarily prevents double taxation on income that both countries would otherwise tax. For an Indian-resident owner of a disregarded US LLC:

• The treaty can protect you from US income tax on the LLC's profits (if the LLC has no US "permanent establishment"), so the profits are only taxed in India.
• The treaty does not waive Form 5472. Form 5472 is an information return — it reports transactions, not income. Treaty provisions on double taxation of income don't apply.
• If you're providing services to US clients via the LLC, the "business profits" article of the treaty generally protects you from US income tax unless you have a fixed place of business in the US.

Indian reporting obligations for a US LLC owner

Separately from the US filing, Indian residents have their own disclosure requirements for foreign assets:

• Schedule FA (Foreign Assets) on ITR-2 / ITR-3: Indian residents must disclose foreign financial assets — including ownership of a US LLC — in the Foreign Assets schedule of their Indian income tax return. The LLC's equity value and income must be disclosed.
• FEMA reporting: if you remit money from India to fund the LLC, that flows through the LRS (Liberalised Remittance Scheme) with the $250,000/year limit. Capital contributions to the LLC are typically classified as "overseas direct investment" and may require Form ODI filing with RBI through your bank.
• PFMS (Foreign Currency Accounts): if the LLC has US bank accounts, they may need to be disclosed to RBI/FEMA and in the ITR Schedule FA. Consult a CA familiar with FEMA for your specific structure.

Snapfile handles the US Form 5472 + pro forma 1120 side only. For the Indian ITR/Schedule FA/FEMA side, work with a CA registered with ICAI who has cross-border compliance experience.

PAN as the FTIN on Form 5472

The IRS accepts the Indian PAN as the "Foreign Tax Identification Number" (FTIN) for the foreign owner box on Form 5472. Format it as ABCDE1234F (your PAN as-is). If you're a Person of Indian Origin (PIO) or NRI without a current PAN, write "AppliedFor" in the field and follow up by applying for a PAN. The IRS won't reject the form over this, but having a FTIN is best practice.

Getting an EIN for your LLC without an SSN

You don't need an SSN or ITIN to get an EIN. Apply via Form SS-4 (fax to the IRS international applicant line) and write "Foreign" in field 7b. Full walkthrough: How to get an EIN without an SSN.

Conservative summary for Indian founders

• US side: Form 5472 + pro forma 1120, faxed to IRS Ogden by April 15. Snapfile handles this for $89.
• India-US treaty doesn't waive Form 5472 — file it regardless.
• Use your PAN as the FTIN on the form.
• Indian side: disclose the LLC in Schedule FA (ITR-2/3), and check FEMA/LRS/ODI obligations when funding the LLC from India. Use a FEMA- experienced CA for this part.
• Missing Form 5472: $25,000 penalty per year. Catch up under DIIRSP before the IRS contacts you. See DIIRSP guide.