For residents of Germany who own a US LLC

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

Owners in Germany 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 treaty with Germany affects you.

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

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Quick answer

Does a resident of Germany who owns a US LLC have to file with the IRS?

Yes, if the LLC had a reportable transaction with you, and forming and funding it counts. A single-member US LLC owned by a resident of Germany files Form 5472 with a pro forma Form 1120 each year, usually by April 15 for a calendar year, even with no income. The US has an income tax treaty with Germany, which affects how profits and US-source payments are taxed, not whether Form 5472 is due.

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 Germany: Yes, per the IRS treaty list
Your home tax ID: Your tax identification number (Steuer-ID), issued for life by the Federal Central Tax Office (Bundeszentralamt fur Steuern)
Currency: Convert euros to US dollars; the form is in US dollars
Fees: See our Form 5472 filing service page, or request a quote

Is there a US tax treaty with Germany?

Yes: the IRS lists Germany among the countries with a US income tax treaty (IRS treaty list). The treaty does not remove Form 5472. What it can change is how much US tax applies to the LLC's profit and to payments you receive.

Question	With the treaty	Source
Is the LLC profit taxed in the US?	Generally only the part attributable to a US permanent establishment, such as an office or dependent agent in the US	Form 8833
Do I have to tell the IRS I rely on that?	Yes, on Form 8833 with the return; not disclosing costs US$1,000	Form 8833
Can I get lower withholding on US dividends, interest or royalties?	You can claim it on Form W-8BEN by naming Germany; otherwise 30% generally applies	W-8BEN, Pub 515

Treaty benefits depend on the exact article and on whether you qualify under it, so we check the treaty text before relying on it.

What a US LLC owned from Germany 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 Germany with no US customers, no US office and no profit can still owe a US filing every year.

Filing	When it applies	Source
Form 5472 with a pro forma Form 1120	Every year the LLC has a reportable transaction with its foreign owner, including money you put in or take out	IRS
BE-13 survey	Generally within 45 days when a foreign person sets up or buys a US business	BEA rule
State annual report or tax	Depends on the state; see US LLC annual fees by state	State filing office
Form 1040-NR	Only if the LLC has income effectively connected with a US trade or business	IRS

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).

What we need from an owner in Germany

To prepare the filing for an owner in Germany, we ask for:

Your passport and your home address in Germany
Your tax ID: For a resident of Germany, this is usually your tax identification number (Steuer-ID), issued for life by the Federal Central Tax Office (Bundeszentralamt fur Steuern) (OECD tax ID sheet).
The LLC's formation documents and EIN letter
Bank and payment account statements for the year, so every transfer between you and the LLC can be listed, converted from euros where needed

The IRS wants all amounts in US dollars and the same tax ID used every year (IRS).

Your taxes in Germany

German founders use a US LLC to sell software or e-commerce products into the US, or to give a US partner or investor a US entity to work with.

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

Fees and next step

Owners in Germany are handled exactly like owners anywhere else: Form 5472 with the pro forma Form 1120, or the annual package for a single-member LLC, prepared and signed by Gurleen Kaur, CPA licensed in British Columbia and Washington State. Fees are on our Form 5472 filing service.

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

Treaty and US law sources

Where each rule on this page comes from, for an owner resident in Germany.

Treaty

The IRS lists the 1989 income tax treaty, signed August 29, 1989, amended by a 2006 protocol. General effective date (IRS Table 3): treaty Jan. 1, 1990; protocol Jan. 1, 2008 (IRS treaty documents for Germany; treaty text; IRS Table 3).
Article 4 (Residence), which decides who counts as a resident for treaty benefits.
Article 5 (Permanent Establishment), which defines a US permanent establishment.
Article 7 (Business Profits), under which business profits are taxed in the US only if attributable to a permanent establishment.
Article 10 (Dividends), on dividends.
Article 11 (Interest), on interest.
Article 12 (Royalties), on royalties.
Article 28 (Limitation on Benefits), which sets the tests a resident must meet to claim benefits.
Article 23 (Relief From Double Taxation), on relief from double taxation.
Treaty benefits for income earned through a fiscally transparent entity, such as a single-member LLC, are decided under section 894 and Treas. Reg. section 1.894-1(d) (IRS Pub 515, Form 8833).

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).
Treaty disclosure: Code section 6114, Treas. Reg. section 301.6114-1, and the section 6712 penalty (IRS Form 8833).
BE-13: 15 CFR 801.7 (eCFR).

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

Owners in other countries

Every country page uses the same US rules with that country's treaty status and tax ID. See all of them on US LLC tax by country.

Common questions

I live in Germany. When is my LLC's Form 5472 due?

With the pro forma Form 1120, normally by April 15 for a calendar-year LLC. Form 7004 extends it. The US$25,000 penalty applies if it is not filed.

Which tax ID from Germany do you need from me?

Your tax identification number (Steuer-ID), issued for life by the Federal Central Tax Office (Bundeszentralamt fur Steuern). The IRS asks for the same foreign tax ID every year.

Does the United States have a tax treaty with Germany?

Yes. Germany is on the IRS list of US income tax treaties. The treaty can limit US tax on business profits to profits attributable to a US permanent establishment, a position disclosed on Form 8833, and lets you claim treaty rates on Form W-8BEN.

Will I pay US income tax on my LLC's profit from Germany?

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 the treaty may limit US tax to profits attributable to a US permanent establishment.

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.

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