For residents of Mexico who own a US LLC

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

You live in Mexico 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 Mexico. 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

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Quick answer

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

Usually yes. The IRS treats a single-member LLC owned from Mexico 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 has a tax treaty with Mexico; 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 Mexico: Yes, per the IRS treaty list
Your home tax ID: Your RFC (Registro Federal de Contribuyentes) from the Mexican Tax Administration Service (SAT)
Currency: Convert Mexican pesos to US dollars; the form is in US dollars
Fees: See our Form 5472 filing service page, or request a quote

Does an LLC owned from Mexico owe a US filing with no income?

The yearly filing for an LLC owned from Mexico is mostly an information return. The LLC usually pays no US income tax as a disregarded entity, but the IRS still wants a record of money and property moving between the LLC and its foreign owner. So the LLC files Form 5472 with a pro forma Form 1120, normally by April 15 for a calendar year, and a missed or substantially incomplete form carries a US$25,000 penalty (IRS).

Two other filings sit around it. Right after formation, a BE-13 is generally due within 45 days (BEA rule). Each year, the formation state has its own report or fee (fees by state). A Form 1040-NR comes in only if the LLC has income effectively connected with a US trade or business (IRS).

The US tax treaty with Mexico and your LLC

Mexico 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 Mexico 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).

Documents for owners living in Mexico

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 Mexico, are short.

Item	For an owner in Mexico
Identity	Passport and current home address
Tax ID	Your RFC (Registro Federal de Contribuyentes) from the Mexican Tax Administration Service (SAT)
Money in and out	Statements showing what you paid into the LLC and took out during the year, including amounts in Mexican pesos
Company papers	Articles of organization and the IRS EIN letter

For a resident of Mexico, this is usually your RFC (Registro Federal de Contribuyentes) from the Mexican Tax Administration Service (SAT) (OECD tax ID sheet).

The Mexican side of your LLC

Mexican founders use a US LLC for cross-border trade, US marketplace sales and services sold to US clients.

The US view of the LLC does not decide how Mexico sees it. Ask a tax adviser in Mexico how the LLC and its profit are treated there; we prepare the US filings and share the figures your adviser needs.

Fees and next step

Owners in Mexico 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 Mexico.

Treaty

The IRS lists the 1992 income tax treaty, amended by a protocol listed for 2003. General effective date (IRS Table 3): treaty Jan. 1, 1994; protocol Oct. 26, 1995; protocol Jan. 1, 2004 (IRS treaty documents for Mexico; 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 17 (Limitation on Benefits), which sets the tests a resident must meet to claim benefits.
Article 24 (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 Mexico 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

Is Form 5472 required for an LLC owned from Mexico with no income?

Yes, when there was a reportable transaction with you, such as funding the LLC. No income is needed. A missing or substantially incomplete form carries a US$25,000 penalty.

Which tax ID from Mexico do you need from me?

Your RFC (Registro Federal de Contribuyentes) from the Mexican Tax Administration Service (SAT). The IRS asks for the same foreign tax ID every year.

Does the United States have a tax treaty with Mexico?

Yes. Mexico 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.

Do I need a Form 1040-NR as an LLC owner in Mexico?

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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