Tax
Form 5472
Form 5472 is an IRS information return that foreign-owned US corporations and foreign-owned single-member LLCs must file annually. It reports transactions between the company and its foreign owner, including capital contributions and distributions. The penalty for failing to file starts at $25,000.
In plain terms: An annual IRS form for foreign-owned US companies. Missing it costs $25,000.
Why it matters
The most expensive gap in this category. It is due whether or not the company earned anything, and it is filed with a pro forma Form 1120. Founders form an LLC, never trade, assume a dormant company has no obligations, and discover otherwise years later.
Example
A UK founder forms a Wyoming LLC, never uses it, and files nothing for three years. Three annual Form 5472 filings were due; the exposure is $75,000 before any tax is considered.
Common misunderstanding
Believing a dormant company is exempt. Zero revenue does not mean zero filing.
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Source: IRS — About Form 5472. This is a definition, not tax or legal advice — verify against the primary source before acting.