Definition:
Form 1120 is the U.S. federal tax return filed annually by C-Corporations to report their income, gains, losses, deductions, and tax liability to the Internal Revenue Service (IRS).
For foreign-owned entities, Form 1120 is also used in special cases:
- A foreign-owned Single-Member LLC (SMLLC) must file a pro forma Form 1120 along with Form 5472, even if the LLC is treated as a disregarded entity for tax purposes.
Typical details included in Form 1120:
- Gross income and deductions
- Officer compensation and dividends
- Tax credits and payments
- Balance sheet and shareholder information
Why is it important?
Form 1120 is a core part of tax compliance for any U.S. C-Corp. For foreign-owned LLCs, submitting it with Form 5472 fulfills a critical disclosure requirement—even if no corporate income tax is owed.
Who is it for?
- U.S.-registered C-Corporations
- Foreign-owned SMLLCs (filing pro forma 1120 with Form 5472)
- Any U.S. company taxed as a corporation by IRS election
