For residents of Saudi Arabia who own a US LLC

US LLC Owned From Saudi Arabia: Form 5472, Taxes and Filing

A US LLC owned from Saudi Arabia has a yearly IRS filing even if it earns nothing in the US. This guide shows the filings, the Saudi tax ID that goes on Form 5472, and what it means that the US does not have a tax treaty with Saudi Arabia.

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

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Quick answer

Does an LLC owned from Saudi Arabia 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 Saudi Arabia, and since the US does not have a treaty with Saudi Arabia, US tax on profits depends only on US domestic rules.

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 Saudi Arabia: No, per the IRS treaty list
Your home tax ID: The tax identification number issued to you in Saudi Arabia
Currency: Convert Saudi riyals 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 Saudi Arabia 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 Saudi Arabia 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).

No US tax treaty with Saudi Arabia: what that changes

Saudi Arabia is not on the IRS list of countries with a US income tax treaty (IRS treaty list). That does not change the Form 5472 filing, but it changes two other things.

No permanent establishment shield

Treaty residents can sometimes argue that US business profits are taxable only through a US permanent establishment. An owner in Saudi Arabia cannot. Whether the LLC's income is taxed in the US turns only on US domestic law: is the income effectively connected with a US trade or business? Selling to US customers from Saudi Arabia, with no US office, staff or agent, often is not, but activity carried on in the US can be, and then a US return (Form 1040-NR for an individual owner) is due.

No treaty claim on Form W-8BEN

The treaty claim on Form W-8BEN is only for residents of treaty countries (IRS), so a resident of Saudi Arabia leaves it blank. US-source dividends, interest and royalties paid to you are generally withheld at 30% (IRS).

What we need from an owner in Saudi Arabia

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

Your passport and your home address in Saudi Arabia
Your tax ID: The tax identification number your home tax authority in Saudi Arabia issued to you, if you have one (IRS).
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 Saudi riyals where needed

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

Reporting the LLC in Saudi Arabia

Founders in Saudi Arabia, including expatriates working there, use a US LLC to sell into the US and to hold US bank and payment accounts.

We do not advise on the tax law of Saudi Arabia. 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 Saudi Arabia 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 Saudi Arabia

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 Saudi Arabia: 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 Saudi Arabia 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 Saudi Arabia 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 Saudi Arabia do you need from me?

The tax identification number issued to you in Saudi Arabia. The IRS asks for the same foreign tax ID every year.

Does the United States have a tax treaty with Saudi Arabia?

No. Saudi Arabia 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.

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

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.

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