CPA for foreign-owned U.S. companies
Form 5472, withholding on payments to a parent abroad, and the filings that begin when the founder moves here. We pick up where formation ends. Mandarin and English.
Which U.S. forms apply to a foreign-owned company?
The forms depend on how the company is taxed and who owns it, not on how long it has been open. Find your situation in the table.
| Single-member LLCOwner outside the U.S. | C-Corp25% or more foreign-owned | Paying a parent abroadFees, royalties, dividends | Founder who moved hereNow a U.S. tax resident | |
|---|---|---|---|---|
| Main filing | Pro forma Form 1120 as a wrapper for Form 5472, even with no U.S. tax due | Form 1120 every year, with Form 5472 attached | Form 1042 and Form 1042-S when U.S.-source payments are withheld on | Form 1040, plus a dual-status return in the year you arrive |
| Information return | Form 5472 for every transaction with the owner | Form 5472 for each related foreign party | W-8BEN-E from the recipient on file before you pay | FBAR, Form 8938 and Form 3520 where they apply |
| Usual deadline | April 15 for a calendar-year company | April 15, or October 15 if extended | March 15 for Forms 1042 and 1042-S | April 15; FBAR extends to October 15 |
| Penalty if missed | $25,000 per Form 5472, with more if IRS notice is ignored | $25,000 per Form 5472, with more if IRS notice is ignored | Tax not withheld can become the payer's own liability | Form 3520 penalties start at 5% a month; FBAR penalties vary by intent |
Starting a company is covered on our U.S. company formation page. For a foreign-owned importer, see our importer 5472 guide.
What does the first year of compliance look like?
A calendar-year company formed this year. Dates move when they fall on a weekend, and an extension changes the return date, not the payment date.
- First weeks
Books, bank account and a written agreement
Open a bank account in the company's name and start bookkeeping on day one. Put any agreement with the parent or owner in writing, because Form 5472 asks you to report each transaction.
- All year
Keep owner transactions separate
Capital contributions, loans, reimbursements and payments to the owner or an affiliate are the items Form 5472 reports. A bank account used for both personal and company money makes this very hard to reconstruct.
- January
Collect W-8BEN-E forms and invoices
Confirm who you paid abroad, for what, and where the work was done. That decides whether any withholding was due and whether the payment is reportable.
- March 15
Forms 1042 and 1042-S
If you withheld tax on a U.S.-source payment to a foreign person, you report and deposit it here. If nothing was withheld because the payment was foreign-source, you keep the paperwork that shows why.
- April 15
Form 1120 and Form 5472, or extend
The return and Form 5472 are due on the 15th day of the fourth month after year end. Form 7004 extends the filing to October 15 for a calendar-year company, and the penalty clock starts when the return is late.
- May 15
Texas franchise tax report
A Texas LLC or corporation files an annual franchise tax report, even when no tax is due. Texas has no personal income tax. We file it with the federal work.
Bank accounts, ITIN, BOI and state choice
Four setup questions that foreign owners ask once the company exists.
Opening a bank account without living here
Banks ask for the formation documents, the EIN and proof of the owners. Some will open an account remotely and others want a visit, and the rules change. We prepare the packet. Read our DFW bank account guide.
Do you need an ITIN?
An ITIN is a tax ID for a person who has to file a U.S. return but cannot get an SSN. It is applied for on Form W-7. Many foreign LLC owners never need one, because the company's EIN covers the company.
Beneficial ownership (BOI) reporting
FinCEN's final rule, effective in August 2026, limits BOI reporting to foreign entities registered to do business in a U.S. state. A company created in the U.S. does not report. We confirm the current rule before every engagement.
Which state to form in
Texas and Wyoming are the usual choices for non-resident owners, and a Wyoming company doing business in Texas must also register in Texas. The comparison lives on the formation page and in our Wyoming vs Texas article.
What changes when the founder moves to the U.S.?
Moving here changes the owner's personal filings first, and the company's second. Plan the year before you arrive.
Substantial presence test
You become a U.S. tax resident if you are here 31 days in the year and your weighted days over three years reach 183: all of this year, a third of last year and a sixth of the year before. A green card also makes you a resident.
A dual-status first year
In the year you arrive you may file as a non-resident until your residency start date and as a resident after it. The company's income before that date is treated differently, so we map the dates before the return.
FBAR and Form 8938
Once you are a U.S. person, Chinese bank and brokerage accounts trigger the FinCEN FBAR when foreign accounts total more than $10,000 at any point in the year. Form 8938 is a second, separate report with its own thresholds. Read our FBAR guide for foreign owners.
Form 3520 for gifts from parents
Money from parents abroad is not taxable to you, but a U.S. person who receives more than $100,000 from a non-resident individual in a year reports it on Form 3520. The penalty for not reporting starts at 5% a month.
Foreign-owned company questions
Does a foreign-owned single-member LLC have to file a tax return?
Yes, a limited one. A U.S. LLC wholly owned by a foreign person must file Form 5472 attached to a pro forma Form 1120 each year, even if it has no income and owes no tax. Missing it carries a $25,000 penalty per form.
When does a C-Corp need Form 5472?
When at least 25% of the corporation is owned by a foreign person, or when it has a reportable transaction with a related foreign party. It is filed with the corporation's Form 1120 for each related party.
What is the penalty for not filing Form 5472?
$25,000 for each form not filed on time or filed incomplete. If the IRS sends a notice and you still do not file, further $25,000 penalties accrue for each 30-day period. Late filing is much cheaper to fix early.
Do I withhold tax when I pay my Chinese parent company?
It depends on the payment. Fees for services performed outside the U.S. are generally foreign-source and not withheld on. U.S.-source dividends and royalties are withheld on at 30%, or 10% under the treaty with a W-8BEN-E.
Can I get an EIN or open a bank account without an SSN?
Yes. An EIN is filed on Form SS-4 without an SSN, and banks accept an EIN with the formation documents. Some require a visit. Step-by-step setup is on our formation page.
Do I still have to file a BOI report in 2026?
Not for a company created in the U.S. FinCEN's final rule, effective August 2026, limits reporting to foreign entities registered to do business here. We confirm the current rule before your filing season.
What do I report when I move to the U.S. from China?
Your own return changes first: residency date, a dual-status year, the FBAR and Form 8938 for Chinese accounts, and Form 3520 for large gifts from parents. The company's Form 5472 stays in place as well.
Do you work in Mandarin?
Yes. We work in English and Mandarin Chinese, including correspondence and document review, and we answer by email or phone across time zones.
Talk to a CPA about your U.S. company
Tell us where the owners live and what the company does. We answer in English or Chinese.
- Phone
- Office
- 1560 E Southlake Blvd, Suite 155Southlake, Texas 76092
- Hours
- Monday – Friday: 9:00 – 18:00Saturday & Sunday: Closed