- You own a single-member U.S. LLC from outside the U.S.
- You are not sure whether you file only Form 5472 or also a 1040-NR
- You have hired people or opened an office in the U.S.
The situation
“They could have taken my money in year one. Instead they told me to come back when it actually mattered.”
Samuel runs a software company from London through a Delaware LLC. In 2023 all sales were made online by his London team, and the LLC had no U.S. office, staff or agent.
In 2024 he hired a sales lead in New York who negotiated and signed customer contracts on the LLC’s behalf.
Application path
- W-7 reason
- Reason b — nonresident alien filing a U.S. federal tax return
- Filed with
- Form 1040-NR for tax year 2024
For 2023 the LLC only needed a pro forma Form 1120 with Form 5472, filed under its EIN; Samuel had no personal filing requirement and no basis for an ITIN. In 2024 a U.S. employee concluding contracts meant the income was effectively connected, so Samuel had to file a 1040-NR.
Documents
- Valid UK passport
- LLC formation documents and EIN letter
- 2024 financial statements and the sales lead’s employment agreement
- Form W-7 with Reason b
- Form 1040-NR reporting effectively connected income
- Pro forma Form 1120 and Form 5472 for 2024
- Form W-7 (COA) Certificate of Accuracy
Timeline
- 2024, month 2First call. No ITIN needed for 2023; Form 5472 only.
- 2025, day 1Second call after the New York hire; ECI confirmed.
- 2025, day 5Video interview; passport certified.
- 2025, day 9W-7 and 1040-NR mailed.
- Week 12ITIN issued.
Issues we solved
Samuel’s bank asked for his ITIN in 2023 and he wanted to apply anyway.
An application without a filing requirement would have been rejected. We explained the rule and he opened the account with his passport and the LLC’s EIN instead.
The IRS sent a CP566 letter asking for the sales lead’s employment agreement as support.
We replied within a week, well inside the 45-day window, and the application moved forward without being re-filed.
Outcome
The ITIN was issued twelve weeks after filing. Samuel’s 2024 obligations are now complete: Form 5472 for the LLC and a 1040-NR for himself.
Missing Form 5472 carries a $25,000 penalty, so we set both forms on the same annual calendar.
Questions people in this situation ask
No. Form 5472 and the pro forma 1120 are filed under the LLC’s EIN.
Income effectively connected with a U.S. trade or business, for example U.S. employees or agents who conclude contracts, a U.S. office, or U.S. inventory.
A request for more information. You have 45 days to respond before the application is closed.
IRS sources
- Instructions for Form W-7 (Rev. December 2024)
- Publication 519 — U.S. Tax Guide for Aliens
- About Form 5472
This is a representative case. Names and personal details are illustrative; the IRS rules, forms and calculations reflect tax year 2024. It is general information, not tax advice for your situation.