Incfile and ZenBusiness - The Annual Tax Gap Foreign Founders Hit
Summary
Incfile (now Bizee) and ZenBusiness handle formation and basic compliance. Foreign-owned LLC owners are responsible for Form 5472 separately.
If you formed a US LLC through Incfile (rebranded to Bizee in 2024) or ZenBusiness, your federal compliance picture includes Form 5472 for the IRS. The standard formation packages from these services do not file Form 5472 + Pro Forma 1120 on your behalf. The annual federal information return is the LLC owner's responsibility under IRC §6038A, with a $25,000 penalty per year per LLC for non-filing.
Where the Incfile and ZenBusiness packages stop
Incfile (Bizee) and ZenBusiness provide LLC formation, registered agent service, and some compliance subscription tiers. Federal information returns including Form 5472 are not in standard formation packages. Some compliance subscription tiers include limited tax services; verify scope before assuming federal filings are handled. The §6038A obligation remains with the LLC owner regardless of formation service.
What Incfile/Bizee provides
Incfile launched in 2004 and rebranded to Bizee in 2024. The service is one of the most popular budget-friendly formation options for US-based and foreign founders. The standard offerings include:
- LLC formation in any US state
- EIN application via Form SS-4
- Registered agent service (one year free, then renewable)
- Operating agreement templates
- Some compliance reminders
Bizee offers tiered subscription packages that may include additional services like business banking partnerships, accounting tools, and document templates. The specific scope of each tier varies and is updated periodically.
What ZenBusiness provides
ZenBusiness offers similar formation services with a focus on small business compliance:
- LLC formation in any US state
- EIN application
- Registered agent service
- Worry-free compliance subscription (annual report filings, registered agent renewals)
- Some accounting tools and business banking partnerships
ZenBusiness is known for its compliance-focused subscription tier, which handles state-level annual reports for many small businesses.
What neither service handles
Both Incfile/Bizee and ZenBusiness focus on state-level service of process and state-level compliance. Federal information returns including Form 5472 are not part of the standard offerings. Specifically:
| Filing or service | Who is responsible | In a standard Incfile or ZenBusiness package? |
|---|---|---|
| Form 5472 and Pro Forma 1120 | The LLC owner | No |
| Federal income tax returns, Form 1040, 1120 or 1065 | The LLC owner | No |
| FBAR, FinCEN Form 114 | The LLC owner | No |
| Tax planning or advisory | A CPA or tax advisor | No |
| State annual report | The LLC | Yes on the ZenBusiness compliance tier; varies by Bizee tier |
This is consistent with most formation services. Stripe Atlas, Doola, Firstbase, and Northwest Registered Agent all share the same gap. State-level service is in scope; federal information returns are not.
Why this gap creates penalty exposure
The §6038A obligation under IRC §6038A is statutory. It applies to every foreign-owned single-member LLC with reportable transactions, regardless of which formation service was used to create the LLC. The penalty is $25,000 per year under IRC §6038A(d)(1).
Three unfiled years is $75,000. The penalty under IRC §6038A(d)(1) is $25,000 per Form 5472, per year, with no cap on the total: 3 years x 1 form x $25,000 = $75,000. If a second foreign related party also transacted with the LLC, each year needs two forms and the figure doubles to $150,000.
Foreign founders who formed through Incfile/Bizee or ZenBusiness and did not file Form 5472 typically discover the gap through:
- Bank or payment platform compliance reviews (Mercury, Brex, Payoneer)
- Visa or immigration applications requiring tax compliance evidence
- Investor or acquirer due diligence
By the time the founder realizes the obligation, multiple years have often passed.
What Form 5472 requires
Foreign-owned single-member LLCs file Form 5472 with a Pro Forma 1120 cover sheet. The form reports transactions between the LLC and foreign related parties (typically the foreign owner personally). Reportable transactions include capital contributions, distributions, loans, and payments for services.
The packet is mailed or faxed to:
Internal Revenue Service 1973 Rulon White Blvd, M/S 6112 Attn: PIN Unit Ogden, UT 84201
Fax: 855-887-7737.
Foreign-owned disregarded entities cannot e-file. Deadline is April 15 (October 15 with Form 7004 extension).
What about ZenBusiness's compliance subscription?
ZenBusiness's "Worry-Free Compliance" subscription handles state-level annual reports and registered agent renewals. The standard tier does not include Form 5472. Some higher tiers include limited tax filing assistance; verify whether your subscription specifically includes Form 5472 + Pro Forma 1120 for foreign-owned LLCs before assuming coverage.
The terminology can be confusing. "Compliance subscription" sounds comprehensive but typically refers to state-level compliance, not federal information returns.
What about Bizee's tax services?
Bizee offers various tax services including bookkeeping integrations and tax preparation referrals. These services may or may not cover Form 5472 for foreign-owned LLCs depending on the specific service tier. Check the scope of any Bizee tax service before assuming federal information returns are included.
If in doubt, ask Bizee or ZenBusiness directly in writing whether Form 5472 + Pro Forma 1120 is filed on your behalf each year. Save the response for your records.
BOI exemption status
As of March 26, 2025, US-formed entities (including LLCs formed through Incfile/Bizee or ZenBusiness) are exempt from BOI reporting under the FinCEN interim final rule. Customers who previously filed BOI do not need to update; customers who never filed do not owe one. The remaining federal obligation is Form 5472.
Closing the federal gap your formation package left open
If you formed your US LLC through Incfile/Bizee or ZenBusiness and have not filed Form 5472, the right action depends on whether the IRS has contacted you. For voluntary catch-up cases, file all unfiled years with a reasonable cause statement under §6664(c). For notice cases, Form 843 is the abatement vehicle.
For standard catch-up filings, filetax.co generates the complete Form 5472 + Pro Forma 1120 packet for $99. Multi-year cases or complex transactions benefit from CPA review.
The cornerstone diagnostic is at Missed Form 5472. For the immediate panic plan, see What to Do Right Now. For multi-year cases, see Filed 5472 Multiple Years Late.
The IRS's official Form 5472 page is at IRS.gov/Form5472.
Bizee and ZenBusiness customers ask these
Does Bizee (formerly Incfile) file Form 5472 for me?
Not in the standard formation package. Some Bizee tax service tiers may include federal filings; verify the scope of your specific subscription. Default assumption: not included.
I have ZenBusiness Worry-Free Compliance. Does that cover the IRS?
ZenBusiness Worry-Free Compliance covers state-level annual reports and registered agent renewals. It does not cover federal Form 5472. Customers should confirm the scope directly with ZenBusiness in writing.
My LLC has had no revenue. Do I still need Form 5472?
Almost always yes. The threshold for "reportable transaction" is low. Forming the LLC and funding the bank account creates a reportable transaction. The form is required for any year with at least one reportable transaction.
How do I know if my LLC was formed through Incfile or Bizee?
Bizee is the rebranded name of Incfile (rebrand occurred in 2024). The same company, same services. Customers formed before the rebrand were Incfile customers; customers formed after are Bizee customers. The formation paperwork and ongoing services are continuous across the rebrand.
Should I switch from Bizee or ZenBusiness to a service that handles Form 5472?
Not necessarily. The federal information return and state-level services are independent. Many foreign founders use Bizee or ZenBusiness for state compliance and a separate provider (filetax.co or a CPA) for the federal Form 5472 filing.
My compliance subscription says "annual report filing included". Does that ever include Form 5472?
No. An annual report is a state filing made with the Secretary of State to keep the LLC in good standing. Form 5472 is a federal information return filed with the IRS under IRC §6038A. The two are filed with different governments, on different deadlines, and a subscription that names the first has said nothing about the second.
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