For residents of India who own a US LLC

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

You live in India and own a US LLC. Each year it files Form 5472 with a pro forma Form 1120, even with no US income, and the US has an income tax treaty with India. This page covers what to file, what to enter as your foreign tax ID, and what the treaty position means for you.

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

Request a Quote What to File

Quick answer

Does an LLC owned from India file with the IRS every year?

In most cases. Form 5472 with a pro forma Form 1120 is due for any year the LLC had a transaction with you, which includes funding it. Profit is not required. The filing identifies you as the foreign owner living in India, and since the US has a treaty with India, treaty rules can limit US tax on profits.

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 India: Yes, per the IRS treaty list
Your home tax ID: Your Permanent Account Number (PAN), the 10-character tax identification number issued by the Income Tax Department
Currency: Convert Indian rupees to US dollars; the form is in US dollars
Fees: See our Form 5472 filing service page, or request a quote

The US tax treaty with India and your LLC

India is on the IRS list of countries that have an income tax treaty with the United States (IRS treaty list). For an LLC owner, the treaty matters in two places.

Business profits and a permanent establishment

US treaties generally tax a treaty resident's business profits in the US only if they are attributable to a permanent establishment in the US, such as an office or a dependent agent. Taking that position on a US return is a treaty-based return position, disclosed on Form 8833; failing to disclose it carries a US$1,000 penalty (IRS Form 8833). Whether you qualify depends on the treaty's text, including any limitation on benefits article, so we read the actual treaty for your facts.

Treaty rates on Form W-8BEN

If a US payer pays you US-source income such as dividends, interest or royalties, the treaty claim on Form W-8BEN, naming India as your country of residence, is how you claim a lower withholding rate (IRS). Without a valid treaty claim, the general rate on that kind of income is 30% (IRS).

What a US LLC owned from India 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 India 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 India

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

Your passport and your home address in India
Your tax ID: For a resident of India, this is usually your Permanent Account Number (PAN), the 10-character tax identification number issued by the Income Tax Department (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 Indian rupees where needed

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

Reporting the LLC in India

Founders in India use a US LLC for software, IT services and e-commerce sold to US customers.

We do not advise on the tax law of India. Your local adviser decides how the LLC is reported at home, and we give them the US returns and numbers so both sides match.

Fees and next step

Owners in India 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 law references for owners in India

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

Treaty

The IRS lists the 1989 income tax treaty, signed September 12, 1989. General effective date (IRS Table 3): treaty Jan. 1, 1991 (IRS treaty documents for India; 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 and Fees for Included Services), on royalties.
Article 24 (Limitation on Benefits), which sets the tests a resident must meet to claim benefits.
Article 25 (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 India 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

Does a resident of India 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 India do you need from me?

Your Permanent Account Number (PAN), the 10-character tax identification number issued by the Income Tax Department. The IRS asks for the same foreign tax ID every year.

Does the United States have a tax treaty with India?

Yes. India 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.

Does an LLC owner in India 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 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.

Request a Quote for your US LLC filings from India

Tell us your situation in a few lines. We confirm whether we can help, what records matter and the next step. Substantive advice begins under a paid diagnostic or signed engagement.

Prepared and signed by a licensed US CPA who can represent you before the IRS. Verify Gurleen Kaur's Washington licence (#41150) on CPAverify

Call +1-778-325-0564 [email protected]

Name

Phone optional

Service needed

Briefly describe what you need

How did you find us? optional

By submitting, you agree that Illuminous Accounting may use this information to respond to your inquiry. Please do not include account numbers or other sensitive documents. If we work together, documents come in through our secure client portal, never by email. Read our privacy notice.