Form 5472 for Shopify Sellers: Annual Tax Guide
Updated June 2026 · Reviewed by a Form 5472 specialist
Updated June 2026 · Reviewed by a Form 5472 specialist
The short answer
Key takeaways
Because a Shopify store run through a US LLC owned by a non-US person is a foreign owned disregarded entity, and IRC §6038A requires it to report transactions with its owner. The obligation began for disregarded entities in 2017 under T.D. 9796.
Many Shopify sellers form a US LLC to access Stripe, PayPal, US payment processors, and US-based suppliers. That is a smart move — but it carries a federal reporting duty most sellers never hear about until a notice arrives. When a non-US person owns a US single-member LLC, the IRS treats that LLC as a disregarded entity for income tax, but as a corporation for the limited purpose of Form 5472 reporting. Final regulations under T.D. 9796 created this rule for tax years beginning on or after January 1, 2017.
The obligation is identical to any other foreign owner — there is nothing Shopify-specific that exempts you. For the foundational rules, see Form 5472 for foreign-owned single-member LLCs. The same logic applies whether you sell physical goods, dropship, or run a print-on-demand store.
Any Shopify seller whose store runs through a US LLC that is at least 25% owned by a non-US person and had a reportable transaction must file. That captures virtually every foreign-owned Shopify LLC, because funding the store is itself reportable.
Two conditions must both be true: a foreign person owns at least 25% of the US LLC, and the LLC had a reportable transaction with that owner or a related foreign party. Because launching a Shopify business always means moving money into the LLC, the second condition is met in almost every case in year one.
| Your setup | Files Form 5472? | Filed with |
|---|---|---|
| Non-US owner, US single-member LLC | Yes — if reportable transaction | Pro forma Form 1120 |
| Non-US owner, US LLC taxed as C-corp | Yes — if reportable transaction | Form 1120 |
| Two non-US owners, US LLC as partnership | Generally no (Form 1065/K-1) | Form 1065 |
| US-citizen owner, no foreign owner | No | — |
Source: IRC §6038A; IRS Instructions for Form 5472. Verified June 2026.
If you are still unsure, the rules are the same for every online business model — compare your situation against Form 5472 for e-commerce founders.
The most common triggers are capital contributions to fund the store, owner draws or distributions, and fees paid by the owner on the LLC's behalf. Even a single $100 contribution to open the LLC is a reportable transaction.
Form 5472 is triggered by transactions between you and your LLC, not by your Shopify revenue. The money you move to set up and run the store is what matters. Sales to customers are generally not reportable transactions; movements between you (the foreign owner) and the LLC are.
| Action | Reportable? |
|---|---|
| Wiring money to fund the LLC bank account | Yes — capital contribution |
| Paying Shopify or app subscriptions from your personal card | Yes — amount paid on behalf of the LLC |
| Taking an owner draw from store profits | Yes — distribution |
| Lending money to the LLC for inventory | Yes — loan |
| Customer buys a product on your store | No — not a related-party transaction |
Source: IRS Instructions for Form 5472, Part V/VI. Verified June 2026.
Because at least one of these almost always happens, plan to file every year the LLC exists — even a zero-revenue year. Read how the rule plays out for freelancers with US LLCs; the mechanics are the same.
You cannot e-file. Attach Form 5472 to a pro forma Form 1120, then mail it to P.O. Box 149342, Austin, TX 78714-9342, or fax it to 855-887-7737. Those are the only 2 accepted methods. Keep the receipt as proof.
There is no online submission portal for a foreign-owned disregarded entity. The IRS accepts only paper mail or fax for this filing. The pro forma Form 1120 is a near-blank corporate form: you complete the identifying header and write “Foreign-owned U.S. DE” across the top, then attach the completed Form 5472.
| Method | Where | Proof to keep |
|---|---|---|
| P.O. Box 149342, Austin, TX 78714-9342 | Certified-mail receipt | |
| Fax | 855-887-7737 | Fax transmission confirmation |
Source: IRS Instructions for Form 5472 (foreign-owned U.S. DE). Verified June 2026.
If preparing a corporate form for a store you only opened to take payments feels like overkill, that is exactly what a flat-fee service handles. Start on the apply page.
Form 5472 for the 2025 tax year is due April 15, 2026, filed with the pro forma Form 1120. Filing Form 7004 by April 15 pushes the deadline to October 15, 2026 — a 6-month extension of filing only.
The deadline is the 15th day of the 4th month after the tax year ends — April 15 for a calendar-year LLC, which covers nearly every Shopify store. Form 7004 buys you six more months, but because a disregarded entity has no entity-level income tax, the extension is purely about the paperwork date, not a payment date.
Do not wait until April to gather your records. Keep a running log of every contribution and draw throughout the year so the Part V totals are ready. The same deadline discipline that protects e-commerce founders protects Shopify sellers.
The penalty is $25,000 per form, per year, under IRC §6038A(d). There is no cap and no statute of limitations (IRC §6501(c)(8)), and an extra $25,000 accrues every 30 days after a 90-day IRS notice.
This is one of the harshest information-return penalties in the tax code, and it applies even to an honest mistake or a forgotten form. Because there is no statute of limitations on an unfiled information return, a year missed three years ago can still be assessed today, with interest. A seller who ignored the rule for several years can face six figures in exposure.
A single missed year is $25,000. After the IRS sends a 90-day notice, an additional $25,000accrues every 30 days the form stays unfiled, with no upper limit. Read the full breakdown on the Form 5472 penalty page before assuming a small store is safe to skip.
No. Under FinCEN's March 2025 interim final rule, US-formed entities including foreign-owned US LLCs are exempt from BOI; only foreign reporting companies file. Form 5472 is separate and still required every year.
Some sellers confuse the two regimes and assume that because BOI reporting was rolled back for domestic entities, their federal obligations are gone. They are not. Beneficial ownership information reporting and Form 5472 are entirely different rules administered by different agencies — FinCEN versus the IRS.
| Rule | Agency | Applies to your US LLC? |
|---|---|---|
| BOI (beneficial ownership) | FinCEN | No — US-formed entities are exempt (March 2025 rule) |
| Form 5472 + pro forma 1120 | IRS | Yes — required every year with a reportable transaction |
Source: FinCEN interim final rule (March 2025); IRC §6038A. Verified June 2026.
In short: the BOI relief does nothing to reduce your Form 5472 duty. If you sell on Shopify through a US LLC, the annual filing stands.
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DIY filing is technically free, but the pro forma 1120 and Part V totals trip up first-time sellers, and the $25,000 penalty leaves no room for an honest error. For a flat $299, form5472.tax prepares the forms, reviews them, and files them by mail or fax — saving $248 versus form5472.online and far more versus a doola annual plan at $1,999/year.
Compare every option on the pricing page, or read how the same flat fee works for SaaS founders with US LLCs. The form is identical regardless of who prepares it; what you pay for is getting it right and on time.
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