For residents of Nigeria who own a US LLC
US LLC Owned From Nigeria: Form 5472, Taxes and Filing
Owners in Nigeria 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 Nigeria affects you.
Quick answer
Does an LLC owned from Nigeria 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 Nigeria, and since the US does not have a treaty with Nigeria, US tax on profits depends only on US domestic rules.
At a glance
- Yearly US filing
- Form 5472 with a pro forma Form 1120
- US tax treaty with Nigeria
- No, per the IRS treaty list
- Your home tax ID
- Your Taxpayer Identification Number (TIN), issued by your State Board of Internal Revenue or by the Federal Inland Revenue Service
- Currency
- Convert naira to US dollars; the form is in US dollars
- Fees
- See our Form 5472 filing service page, or request a quote
Without a US treaty: LLC owners in Nigeria
The United States has no income tax treaty with Nigeria (IRS treaty list). For an LLC owner that has two consequences.
US tax on profit depends only on US law. The question is whether the LLC's income is effectively connected with a US trade or business. With no treaty, there is no permanent establishment threshold to rely on. Work done from Nigeria for US customers is often outside that, but staff, an agent or premises in the US can bring it in, and then a Form 1040-NR is due for an individual owner.
No treaty claim on Form W-8BEN. There is no treaty to claim under (IRS), and US-source dividends, interest and royalties are generally withheld at 30% (IRS).
Does an LLC owned from Nigeria owe a US filing with no income?
The yearly filing for an LLC owned from Nigeria 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).
Getting your Nigerian owner details ready
About you. Your passport, your address in Nigeria and your tax ID. For a resident of Nigeria, this is usually your Taxpayer Identification Number (TIN), issued by your State Board of Internal Revenue or by the Federal Inland Revenue Service (OECD tax ID sheet).
About the money. Every amount that moved between you and the LLC in the year, with dates. If you funded the LLC from an account in naira, the statement from that account helps us convert it to US dollars.
About the LLC. Formation papers, the EIN letter and the state where it was formed (state fees).
Your taxes in Nigeria
Nigerian founders use a US LLC to build fintech, software and online businesses that sell to US and international customers in US dollars.
How the LLC's profit is taxed in Nigeria is decided under the tax rules of Nigeria, which can treat a US LLC differently from the way the IRS does. Check that with a tax adviser in Nigeria. We handle the US side and can give your adviser the US figures and filings.
How we help Nigerian owners
We prepare Form 5472 and the pro forma Form 1120 for Nigerian 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 Nigeria
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 Nigeria: 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 Nigeria 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.
- The Netherlands
- Turkey (Turkiye)
- Romania
- China
- Argentina
- Brazil
- The United Kingdom
- Germany
- India
- Pakistan
- The United Arab Emirates
- South Africa
- Australia
- Panama
- Peru
- Greece
- Italy
- Spain
- France
- Mexico
- The Philippines
- Poland
- Portugal
- Israel
- Japan
- South Korea
- Thailand
- Ireland
- Switzerland
- Sweden
- Austria
- Belgium
- Denmark
- Norway
- New Zealand
- Singapore
- Hong Kong
- Malaysia
- Colombia
- Kenya
- Ghana
- Saudi Arabia
- Vietnam
- Chile
- The Czech Republic
- Finland
- Iceland
- Estonia
- Latvia
- Lithuania
- Slovakia
- Slovenia
- Indonesia
- Ukraine
- Egypt
- Bangladesh
- Morocco
- Sri Lanka
- Bulgaria
- Cyprus
- Malta
Common questions
Does a resident of Nigeria 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 Nigeria do you need from me?
Your Taxpayer Identification Number (TIN), issued by your State Board of Internal Revenue or by the Federal Inland Revenue Service. The IRS asks for the same foreign tax ID every year.
Does the United States have a tax treaty with Nigeria?
No. Nigeria 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 Nigeria 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.
- IRS: United States income tax treaties, A to Z
- IRS: Instructions for Form 5472
- IRS: Form 5472
- IRS: Publication 515, withholding on nonresident aliens and foreign entities
- IRS: Instructions for Form W-8BEN
- eCFR: 15 CFR 801.7 (BE-13 reporting requirement)
- OECD: Information on tax identification numbers, Nigeria
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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