For residents of Brazil who own a US LLC

US LLC Owned From Brazil: Form 5472, Taxes and Filing

Owners in Brazil often learn about Form 5472 late. Here is what the IRS expects from your US LLC each year, which tax ID to report, and how the absence of a treaty with Brazil affects you.

Form 5472Pro forma 1120Treaty: noW-8BENBE-13

Quick answer

Do I have to file Form 5472 if I live in Brazil and own a US LLC?

Usually yes. The IRS treats a single-member LLC owned from Brazil as a corporation for Form 5472, so any money moving between you and the LLC, including the first deposit, triggers Form 5472 with a pro forma Form 1120. The penalty for missing it is US$25,000. The US does not have a tax treaty with Brazil; that matters for tax on profits, not for this filing.

Prepared by Illuminous Accounting · Sources checked November 11, 2026

At a glance

Yearly US filing
Form 5472 with a pro forma Form 1120
US tax treaty with Brazil
No, per the IRS treaty list
Your home tax ID
Your CPF (Cadastro de Pessoas Fisicas) number, Brazil's tax identification number for individuals
Currency
Convert Brazilian reais to US dollars; the form is in US dollars
Fees
See our Form 5472 filing service page, or request a quote

What a US LLC owned from Brazil files each year

A US LLC with a single foreign owner is a disregarded entity for income tax, but the IRS treats it as a corporation for one purpose: reporting its dealings with its owner. That is why an owner in Brazil with no US customers, no US office and no profit can still owe a US filing every year.

FilingWhen it appliesSource
Form 5472 with a pro forma Form 1120Every year the LLC has a reportable transaction with its foreign owner, including money you put in or take outIRS
BE-13 surveyGenerally within 45 days when a foreign person sets up or buys a US businessBEA rule
State annual report or taxDepends on the state; see US LLC annual fees by stateState filing office
Form 1040-NROnly if the LLC has income effectively connected with a US trade or businessIRS

The penalty for a missing or substantially incomplete Form 5472 is US$25,000, and it grows if the failure continues after an IRS notice (IRS).

Does Brazil have a tax treaty with the US?

No. Brazil does not appear on the IRS list of US income tax treaties (IRS treaty list). Form 5472 is the same either way; the difference shows up elsewhere.

QuestionWithout a treatySource
Is the LLC profit taxed in the US?Only if it is effectively connected with a US trade or business; there is no permanent establishment test to fall back onIRS
Can I claim treaty withholding on Form W-8BEN?No. Only residents of treaty countries can make that claimIRS
What is withheld on US dividends, interest or royalties?Generally 30%IRS

For most owners in Brazil who serve customers from home, with no people or premises in the US, the practical question is whether anything the LLC does is carried on inside the US. We go through that with you.

Documents for owners living in Brazil

Most of what goes into the filing comes from the LLC's own records. The parts that come from you, as an owner living in Brazil, are short.

ItemFor an owner in Brazil
IdentityPassport and current home address
Tax IDYour CPF (Cadastro de Pessoas Fisicas) number, Brazil's tax identification number for individuals
Money in and outStatements showing what you paid into the LLC and took out during the year, including amounts in Brazilian reais
Company papersArticles of organization and the IRS EIN letter

For a resident of Brazil, this is usually your CPF (Cadastro de Pessoas Fisicas) number, Brazil's tax identification number for individuals (OECD tax ID sheet).

Your taxes in Brazil

Brazilian founders use a US LLC to sell software and services abroad, to invoice in US dollars and to open US bank and payment accounts.

How the LLC's profit is taxed in Brazil is decided under the tax rules of Brazil, which can treat a US LLC differently from the way the IRS does. Check that with a tax adviser in Brazil. We handle the US side and can give your adviser the US figures and filings.

How we help Brazilian owners

We prepare Form 5472 and the pro forma Form 1120 for Brazilian owners, and can look after the whole year for a single-member LLC. Gurleen Kaur, CPA licensed in British Columbia and Washington State, signs the filings. Fees are set out on our Form 5472 filing service; request a quote below.

See our Form 5472 filing service, the annual compliance package and which state to form in.

Treaty and law references for owners in Brazil

Plain-language summaries; follow the links for the official text. Article numbers are from the treaty text on irs.gov.

Treaty

  • There is no US income tax treaty with Brazil: it is not on the IRS A to Z treaty list. The Internal Revenue Code applies without treaty changes.

US law

  • Form 5472: Internal Revenue Code section 6038A and Treas. Reg. section 1.6038A-1; final regulations T.D. 9796 treat a foreign-owned US disregarded entity as a corporation for this purpose (IRS Form 5472 instructions).
  • US trade or business and effectively connected income: Code sections 864 and 871 (IRS Pub 519).
  • Withholding on US-source payments to nonresidents without a treaty rate: IRS Pub 515.
  • BE-13: 15 CFR 801.7 (eCFR).

The tax law of Brazil itself also applies to you; check it with a local adviser.

Common questions

Does a resident of Brazil have to file Form 5472 for a US LLC?

Yes, if the single-member LLC had a reportable transaction with you in the year, which includes forming it and putting money in. It is filed with a pro forma Form 1120. The penalty for not filing is US$25,000.

Which tax ID from Brazil do you need from me?

Your CPF (Cadastro de Pessoas Fisicas) number, Brazil's tax identification number for individuals. The IRS asks for the same foreign tax ID every year.

Does the United States have a tax treaty with Brazil?

No. Brazil is not on the IRS list of US income tax treaties, so you cannot claim treaty benefits on Form W-8BEN. Form 5472 is due either way.

Does an LLC owner in Brazil file a US income tax return?

Usually only Form 5472 with the pro forma Form 1120 is filed. A Form 1040-NR is needed if the LLC has income effectively connected with a US trade or business, and with no treaty there is no permanent establishment test to rely on.

Sources

Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.

Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 11, 2026. This page is general information, not tax or legal advice for your situation.

Related guides: Form 5472 filing service, Annual compliance package, US LLC tax by country.

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