Form 5472 for Canadian LLC Owners: US-Canada Filing Guide
Updated July 2026 · Reviewed by a Form 5472 specialist
Updated July 2026 · Reviewed by a Form 5472 specialist
The short answer
Key takeaways
Yes. A US LLC that is at least 25% Canadian-owned and had a reportable transaction must file Form 5472 with a pro forma Form 1120 by April 15. Because funding the LLC is reportable, virtually every Canadian-owned single-member LLC must file.
Canadians form US LLCs constantly — to expand an Amazon business into the US marketplace, run a SaaS on Stripe, or invoice American clients in USD. Formation is easy (Stripe Atlas, doola, or direct in Wyoming, Delaware, or New Mexico), but almost nobody mentions the recurring part: once a non-US person owns at least 25% of a US entity, IRC section 6038A applies and Form 5472 becomes an annual obligation.
A single-member LLC owned 100% by one Canadian is the most common case. For income tax the IRS disregards it, but since T.D. 9796 (tax years beginning on or after January 1, 2017) it is treated as a corporation solely for §6038A reporting. That is why a Canadian founder with no US tax to pay still has a US form to file. The foreign-owned disregarded entity guide explains the entity, and the do-I-need-to-file qualifier confirms your situation in a minute.
The 1980 US-Canada Income Tax Convention (as amended) can eliminate US income tax: Article VII exempts business profits with no US permanent establishment, Article XI sets interest withholding at 0%, and Article X caps dividends at 15% (5% for 10%+ corporate owners). But Form 5472 is an information return — no treaty article touches it.
Canada has one of the strongest treaty positions of any country, and it is worth knowing exactly what it buys you:
| Treaty article | What it covers | Effect |
|---|---|---|
| Article VII — Business Profits | Active business income | No US tax without a US permanent establishment |
| Article X — Dividends | US-source dividends | 15% withholding (5% if 10%+ corporate owner) |
| Article XI — Interest | US-source interest | 0% withholding |
| Article XII — Royalties | US-source royalties | 10% (0% for software, patents, know-how) |
| — Form 5472 (IRC §6038A) | Information reporting | Not a tax — treaty gives no relief |
Source: US-Canada Income Tax Convention (1980, as amended); IRC §6038A. Verified July 2026.
The bigger Canada-specific issue is not the IRS — it is the CRA. The US treats your single-member LLC as disregarded (flow-through), while Canada has historically treated a US LLC as acorporation. The treaty's Fifth Protocol (Article IV(7)) lets Canada look through the LLC so you can claim treaty benefits, but the character and timing mismatch still creates real friction: foreign tax credits that don't line up, and income taxed in different years by the two countries. This is a personal cross-border tax question — take it to a US-Canada CPA. Our scope is the US information return; we do not give personal Canadian tax advice.
Fax Form SS-4 with "Foreign" on line 7b — the EIN arrives in about 4 business days. Canadians who previously worked in the US may already have an SSN and can use the online tool. AnITIN (Form W-7) is only needed if you personally must file a US return — not for the LLC's EIN.
| Situation | Route | Timing |
|---|---|---|
| No US tax ID at all (most Canadians) | Fax Form SS-4, write 'Foreign' on line 7b | ~4 business days |
| Old SSN from past US work/study | IRS online EIN tool | Immediate |
| Personal US return needed (e.g., rental election) | Form W-7 for an ITIN, with certified passport or via a Canadian CAA | 7–11 weeks |
| Just the LLC's EIN for Form 5472 | SS-4 only — no ITIN required | ~4 business days |
Source: IRS Instructions for Forms SS-4 and W-7. Verified July 2026.
Two Canadian conveniences worth noting: Canada has many IRS Certifying Acceptance Agents who can verify your passport for a W-7 locally, and mail/fax to the IRS from Canada is fast. The EIN belongs to the LLC — once issued, it goes on the pro forma 1120 and Form 5472 every year.
Canadians have the easiest banking path of any foreign owner. Mercury, Relay, and Wise Business all accept Canadian-owned LLCs, and TD and RBC run cross-border US accounts you can open from Canada. You can even visit a US branch in person — no other country on this list has that option.
Banking is where Canadian founders catch a genuine break. The cross-border relationship between the two banking systems means you have four realistic routes: a fintech business account (Mercury or Relay) opened fully online with your EIN and articles; a Wise Business USD account for cheap CAD→USD conversion; a cross-border account from TD Bank (US) or RBC Bank (US) linked to your Canadian relationship; or simply driving to a US branch — many Canadian founders near the border open accounts in person with zero friction.
Whichever you pick, run every owner-LLC flow through the LLC's US account: the initial funding wire (your reportable capital contribution), later injections, and distributions back to you. A clean single-account trail makes Form 5472 a reporting exercise instead of a forensic one. The capital contribution guide explains why that first wire makes the form mandatory.
No. Canada has no remittance tax, and the new US 1% remittance excise tax (2026) targets cash-funded transfers — wires from the LLC's bank account are outside it. The real cross-border exposure is the CRA's T1135 foreign-property report.
Funding your LLC from a Canadian bank account and taking distributions back are plain cross-border wires — neither country taxes the movement itself. (The 2026 US remittance excise tax is aimed at cash and money-order remittance transfers, not business bank wires.) What Canadians must watch instead is on the CRA side:
| Item | What it is | Trigger |
|---|---|---|
| T1135 — Foreign Income Verification | CRA report of specified foreign property | Cost amount of foreign property (a US LLC interest can count) exceeds CAD 100,000 at any time in the year |
| Foreign affiliate reporting (T1134) | For corporate-level structures | Canadian corporation owns the US entity |
| Penalty for missing T1135 | $25/day, min $100, up to $2,500 — more if gross negligence | Per year, per form |
Source: CRA T1135 guidance; IRC §6038A. Verified July 2026.
T1135 and Form 5472 are mirror obligations — one Canadian, one American — and missing either is expensive. If your LLC interest crossed the CAD 100,000 threshold, flag it to your Canadian accountant.
Report Form 5472 in US dollars using the rate at each transaction date (the Bank of Canada rate is a defensible source). Both countries use the calendar year, but the deadlines differ: April 15 (US) versus April 30 (CRA personal; June 15 filing for the self-employed, balance still due April 30).
Canada is the only country in this series whose tax year already matches the US calendar year — no fiscal-year gymnastics. The practical work is currency: fund the LLC in USD where possible, and keep a ledger of CAD→USD conversions with the date and rate used, because Form 5472 amounts are reported in dollars and your Canadian books will want the same transactions in CAD.
| Date | Country | What's due |
|---|---|---|
| April 15, 2026 | US (IRS) | Form 5472 + pro forma 1120 (or Form 7004 to extend to Oct 15) |
| April 30, 2026 | Canada (CRA) | T1 personal return + balance due |
| June 15, 2026 | Canada (CRA) | T1 filing deadline if self-employed (payment was due April 30) |
Source: IRS and CRA filing calendars, 2026. Verified July 2026.
A Canadian-owned single-member LLC cannot e-file. The package is mailed to 1973 Rulon White Blvd, M/S 6112, Attn: PIN Unit, Ogden, UT 84201, or faxed to 855-887-7737. From Canada, tracked courier reaches Ogden in 1–3 days; an online fax gives instant confirmation.
| Method | Where | Proof to keep |
|---|---|---|
| Mail / courier | Internal Revenue Service, 1973 Rulon White Blvd, M/S 6112, Attn: PIN Unit, Ogden, UT 84201 | Courier tracking (FedEx/UPS cross-border: 1–3 days) |
| Fax | 855-887-7737 | Fax transmission confirmation |
Source: IRS Instructions for Form 5472 (foreign-owned U.S. DE). Verified July 2026.
The full mechanics — including the pro forma 1120 cover sheet labeled “Foreign-owned U.S. DE” — are in the Form 5472 instructions and the how to submit Form 5472 guides.
The penalty is $25,000 per form, per year, per entity under IRC 6038A(d), with no cap and no statute of limitations. An additional $25,000 accrues every 30 days after a 90-day IRS notice.
Three ignored years can mean $75,000 — assessable indefinitely because the limitations clock never starts on an unfiled form. Model your own exposure on the penalty calculator, read the penalty guide, and if you have missed years, start with the catch-up filing guide.
No. Under FinCEN's March 2025 interim final rule, US-formed entities — including Canadian-owned US LLCs — are exempt from BOI reporting. Form 5472 is separate and still required.
The BOI exemption does not reduce the Form 5472 obligation by one cent — different agency, different law. See the BOI vs Form 5472 comparison.
The IRS charges nothing, but one mistake costs $25,000. form5472.tax prepares and files Form 5472 plus the pro forma 1120 for a flat $299 — versus $547 at form5472.online and $1,999/year at doola.
| Provider | Price | What you get |
|---|---|---|
| form5472.tax | $299 | Form 5472 + pro forma 1120, specialist-reviewed, filed |
| form5472.online | $547 | Form 5472 + pro forma 1120 |
| doola | $1,999/year | Bundled annual compliance |
| Firstbase | $999–$1,499/year | Bundled annual compliance |
| DIY | $0 + risk | You prepare and mail it yourself |
Source: published provider pricing, July 2026.
We file the US information return; for the Canadian side — the LLC mismatch, T1135, and foreign tax credits — use a licensed US-Canada CPA. Start the US filing on the apply page.
Form 5472 and pro forma 1120, prepared, reviewed, and filed for a flat $299. Or message us first — we answer every question.