Filing Form 1120 for Your Foreign-Owned LLC
If your LLC elected corporate tax treatment, Form 1120 is your annual return. Here's how to approach it.
Fill Form 1120 with UFF
U.S. Corporation Income Tax Return
Form 1120 is the U.S. Corporation Income Tax Return. If you filed Form 8832 to elect corporate taxation for your LLC, this is now your annual filing obligation.
Who files Form 1120?
Any entity classified as a C-Corporation for federal tax purposes. This includes:
- •Corporations formed as corporations
- •LLCs that elected corporate treatment via Form 8832
When is it due?
Form 1120 is due on the 15th day of the 4th month after your tax year ends. For calendar-year filers, that's April 15. You can get an automatic 6-month extension by filing Form 7004.
Key sections
Page 1 — Income. Report gross receipts, cost of goods sold, and compute gross profit. Then add other income sources like dividends, interest, rents, and royalties.
Page 1 — Deductions. Common deductions include compensation of officers, salaries and wages, repairs, rent, taxes and licenses, interest, and depreciation.
Page 1 — Tax computation. Taxable income is total income minus total deductions. The corporate tax rate is a flat 21%.
Schedule L — Balance sheet. Assets, liabilities, and shareholders' equity at the beginning and end of the tax year.
Schedule M-1 — Reconciliation. Reconciles book income with taxable income.
Foreign-owned LLC specifics
If your LLC is foreign-owned, you almost certainly need to also file Form 5472 alongside Form 1120. The IRS uses Form 5472 to track transactions between the US entity and its foreign owner.
Even if your LLC had zero income and zero expenses, you must still file Form 1120 with Form 5472 attached if you're a foreign-owned entity that has elected corporate treatment.
Penalties for not filing
The penalty for failing to file Form 1120 on time is 5% of unpaid tax per month, up to 25%. But even more concerning for foreign-owned LLCs: the penalty for failing to file Form 5472 is $25,000 per form, per year.
Using UFF
UFF walks you through the essential fields of Form 1120. Fill in the guided sections, generate the PDF, and hand it to your CPA for review before filing.
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