Bookkeeping and tax
Available nowBookkeeping and US tax filings, handled by qualified professionals
A US company has federal, and often state, filing obligations every year, even with little or no revenue. Firmlane offers monthly bookkeeping by a partner bookkeeper and federal tax preparation by qualified tax professionals, including Form 5472 with a pro forma Form 1120 for foreign-owned LLCs. You see the scope and price before you pay.
- Tax returns prepared by qualified tax professionals
- Form 5472 and pro forma Form 1120 for foreign-owned LLCs
- Monthly bookkeeping by a partner bookkeeper
- Scope and price shown before you pay
How it works
Books and returns, handled by the right people
Tax returns need someone qualified to prepare them and to advise you on them. With Firmlane, your federal return is prepared by a qualified tax professional partner, and your books can be kept every month by a partner bookkeeper. Firmlane coordinates the work, keeps your deadlines in view and stores the finished documents in your account.
The tax professional reviews your year, prepares the filing and explains what you are signing. You review and sign the return, and keep a copy with your records.
A foreign-owned single-member LLC with no US income needs something very different from a multi-member LLC with US customers. Tax preparation covers your federal filing for one tax year. State returns and more complex situations may cost more, and you are told before anything changes.
- Monthly categorization and reconciliation of your accounts
- Monthly profit and loss statement and balance sheet
- Federal returns, including Form 5472 with a pro forma Form 1120
- Catch-up filings for missed years, with any extra cost shown first
Federal returns
Which federal return does your company file?
Single-member LLC, foreign owner
- Typical federal filing
- Form 5472 attached to a pro forma Form 1120
- Due date (calendar year)
- April 15
- Good to know
- Applies to foreign-owned US disregarded entities with reportable transactions, which include contributions and distributions. Can't be filed electronically.
Single-member LLC, US individual owner
- Typical federal filing
- Reported on the owner's own return, for example Schedule C
- Due date (calendar year)
- Owner's individual deadline
- Good to know
- By default the LLC is disregarded and doesn't file its own federal income tax return.
Multi-member LLC (partnership by default)
- Typical federal filing
- Form 1065, with a Schedule K-1 for each member
- Due date (calendar year)
- March 15
- Good to know
- Members report their share on their own returns. Foreign members can bring extra withholding and filing rules.
C corporation, or LLC taxed as one
- Typical federal filing
- Form 1120
- Due date (calendar year)
- April 15
- Good to know
- The corporation pays its own federal income tax. A 25% foreign-owned corporation may also need Form 5472.
Corporation or LLC with an S election
- Typical federal filing
- Form 1120-S
- Due date (calendar year)
- March 15
- Good to know
- An S corporation is a tax election, not an entity type. Nonresident aliens can't be shareholders.
Dates are for calendar-year filers: the 15th day of the 3rd month (Forms 1065 and 1120-S) or 4th month (Form 1120) after year end. When a due date falls on a weekend or legal holiday, it moves to the next business day. Form 7004 requests an automatic 6-month extension of time to file, not to pay.
Foreign-owned LLCs
Form 5472 and the pro forma Form 1120
If you live outside the US and own a single-member LLC, the IRS treats the LLC as a foreign-owned US disregarded entity. For this filing, it is treated as a corporation and must report transactions with its foreign owner and other related parties on Form 5472. Money you put into the LLC and money you take out (contributions and distributions) count as reportable transactions.
Form 5472 is attached to a pro forma Form 1120. According to the IRS instructions:
- Write "Foreign-owned U.S. DE" across the top of the Form 1120.
- Complete only the name, address and items B and E on page 1 of the Form 1120.
- The forms can't be filed electronically. Send them by fax or mail to the dedicated IRS address in the instructions, not the usual Form 1120 address.
- The LLC uses its owner's US tax year, or the calendar year if the owner has none. For a calendar year, the filing is due April 15.
- To extend, file Form 7004 by the regular due date, sent to the same dedicated fax number or address.
The LLC must also keep records that support the information it reports.
- Can apply even when the LLC has no US income
- Contributions and distributions are reportable
- Paper or fax only, to a dedicated IRS address
The Form 5472 penalty is $25,000
Per the IRS instructions for Form 5472, the penalty for failing to file Form 5472 when required, or failing to keep the required records, is $25,000. If the failure continues more than 90 days after the IRS notifies you, an additional $25,000 applies for each 30-day period (or part of one). A substantially incomplete Form 5472 counts as a failure to file. If you have missed a year, speak to a qualified professional about catching up.
Beyond the federal return
Bookkeeping, records and state returns
Why bookkeeping matters from day one
Every return starts with your books. Clean records make it possible to report transactions with owners accurately on Form 5472, split income correctly between members on Form 1065, and answer questions from banks and payment processors. Keep business and personal money in separate accounts, keep receipts and invoices, and reconcile your accounts regularly.
How long to keep records
The IRS ties record keeping to the period during which a return can be examined or amended. In general:
- 3 years from the date you filed (or 2 years from when you paid the tax, if later) in most cases.
- 6 years if you don't report income you should have reported and it is more than 25% of the gross income shown on the return.
- 7 years if you claim a loss from worthless securities or a bad debt deduction.
- Indefinitely if you don't file a return or file a fraudulent one.
- At least 4 years for employment tax records.
State returns
Federal filings are only part of the picture. Many states require their own income or franchise tax returns. California LLCs, for example, file Form 568 and pay an $800 annual tax every year until the LLC is cancelled. Requirements depend on your state of formation and where you do business. See compliance for state annual reports and taxes.
The process
How tax preparation works
- 01
Share your details
Tell us your company's state, entity type, owners and where they are tax resident, tax year, and what has already been filed.
You
- 02
Scope confirmed
A qualified tax professional confirms which returns apply to your company. If anything falls outside the standard scope, such as a state return, you see the cost before work starts.
Tax professional
- 03
Books and records
Share your bank statements and records, or the year-end package from Firmlane bookkeeping, so the return starts from accurate numbers.
You
- 04
Return prepared and signed
The tax professional prepares the return and explains it. You review and sign it, and it is filed the way the IRS requires, which for Form 5472 means fax or mail.
Filed
What's in scope
Our partners handle
- Monthly bookkeeping: categorization, reconciliation and monthly reports
- A year-end package for tax preparation
- Form 5472 with a pro forma Form 1120 for foreign-owned single-member LLCs
- Form 1065 and Schedule K-1s for multi-member LLCs
- Form 1120 or Form 1120-S for corporations
- State returns, extensions and missed prior years, with any extra cost shown first
Firmlane does not
- Give tax advice itself. Advice comes from the tax professional preparing your return
- Guarantee refunds, outcomes or penalty relief
- Change your price without telling you first
Not tax advice
This page is general information, not legal or tax advice. Firmlane itself does not provide tax advice: tax returns ordered through Firmlane are prepared by qualified tax professionals, and bookkeeping by partner bookkeepers, who work with you directly. Tax rules, forms, penalties and due dates change, and your obligations depend on your facts. Consult a qualified tax professional, such as a CPA or enrolled agent, before you act. Firmlane is not affiliated with the IRS or any government agency.
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Get your filings handled by qualified professionals
Tax returns prepared by qualified tax professionals, including Form 5472 for foreign-owned LLCs, and monthly bookkeeping. Scope and price shown before you pay.
$0 Firmlane service fee on eligible formations. You pay the state filing fee, shown before you pay.
