Frequently asked questions
Answers to common questions
Straight answers about U.S. tax returns, Form 5472, bookkeeping, LLC formation, pricing and working with us. Can't find yours? Email info@shapeaccounting.com and a tax professional will reply within one business day.
How much do your services cost?
Pricing depends on your scope and complexity: forms required, transaction volume, number of entities and the condition of your records. Individual returns start at $199, business returns at $549, Form 5472 at $249 and bookkeeping at $199 per month. CPA and EA firm support is priced on volume. You receive a written custom quote before any work begins.
Do you charge by the hour?
No. We quote a fee for the agreed scope in writing before work starts, so there are no hourly surprises. If your scope changes, we tell you before any extra work.
Do you offer discounts?
Yes. Early-bird bookings for tax season, bookkeeping and tax bundles, multi-year or multi-entity filings and annual bookkeeping plans can each save up to 10 to 15%. We apply every discount you qualify for in your written quote, up to 15% off in total.
How accurate is the price estimate?
The estimator gives a realistic range based on the most common factors for each service. Your final price is set after we review your actual records and is confirmed in a written quote before any work begins.
Do I need to live in the U.S. to work with you?
No. We work with clients in the U.S. and abroad. Everything is handled by email, video call and shared folders, and we file returns the way the IRS requires for your situation.
What documents do I need to send?
We send a checklist based on your situation. It usually includes last year's return, income forms such as W-2s and 1099s, bank and credit card statements or your bookkeeping reports, and details of major purchases, loans and owner contributions or withdrawals.
How do I share documents with you?
Most clients give us access to their accounting software and share statements by email or a shared folder. We send a checklist so you know exactly what we need.
Which tax returns do you prepare?
Form 1040 for individuals, Form 1065 for partnerships and multi-member LLCs, Form 1120-S for S corporations, Form 1120 for C corporations, and Form 5472 for foreign-owned LLCs and corporations.
Which tax returns does my business need to file?
It depends on how the business is set up. A single-member LLC owned by a U.S. person is usually reported on the owner's Form 1040. A multi-member LLC files Form 1065, an S corporation files Form 1120-S, and a C corporation files Form 1120. A single-member LLC owned by a non-U.S. person files Form 5472 with a pro forma Form 1120. Most businesses also have state filings.
Do you prepare state tax returns too?
Yes. We prepare the state returns that go with your federal return, including multi-state filings when you have income or a business presence in more than one state.
I missed a deadline or prior years. Can you help?
Yes. We prepare late and prior-year returns and tell you the cleanest way to get current. Acting before the IRS contacts you usually gives you more options.
Does an extension give me more time to pay?
No. An extension gives you more time to file the return, not to pay the tax. Interest and penalties can apply to tax paid after the original due date, so we estimate what you owe before then.
Form 5472 & foreign-owned LLCs
Form 5472 & foreign-owned LLCs
Does a foreign-owned single-member LLC need to file a U.S. tax return?
Yes. A U.S. single-member LLC owned by a foreign person generally must file Form 5472 attached to a pro forma Form 1120 each year it has reportable transactions with its owner, even with no U.S. income. The penalty for not filing starts at $25,000.
My LLC had no income. Do I still need to file Form 5472?
Usually yes. The requirement depends on reportable transactions, not income. If you put money into the LLC, took money out or paid its fees yourself during the year, a Form 5472 with a pro forma Form 1120 is generally required.
When is Form 5472 due?
For a calendar-year LLC, it is due on April 15 of the year after the tax year ends. Filing Form 7004 extends the deadline by six months, to October 15. If a deadline falls on a weekend or holiday, it moves to the next business day.
Can Form 5472 be e-filed?
No. A pro forma Form 1120 with Form 5472 for a foreign-owned single-member LLC must be sent to the IRS by fax or mail, as the form instructions describe. We prepare the package, send it and give you proof of submission.
What is the penalty for not filing Form 5472?
The penalty is $25,000 for each form that is late, incomplete or not filed. If the form is still not filed within 90 days of an IRS notice, an additional $25,000 can apply for each 30-day period after that.
I missed previous years. What should I do?
File the missing years as soon as possible. We prepare each missing year and, where it applies, a statement explaining the reason for the delay. Filing before the IRS contacts you usually gives you more options.
Do I need an SSN or ITIN to file?
No. The LLC files using its EIN, which non-resident owners can get without an SSN or ITIN. An ITIN is only needed in some cases, for example if you must file a personal Form 1040-NR.
Do foreign-owned C corporations file Form 5472 too?
Yes. A U.S. corporation that is at least 25% owned by a foreign person generally attaches Form 5472 to its full Form 1120 corporate tax return. Because the corporation also files a complete income tax return, pricing for a C corporation starts at $649.
Does Form 5472 apply to multi-member LLCs?
A multi-member LLC is usually taxed as a partnership and files Form 1065 instead, with different reporting for foreign partners. We prepare partnership returns as well.
Do you do bookkeeping for Amazon and Shopify sellers?
Yes, it is one of our specialties. We reconcile every payout to gross sales, record marketplace fees, refunds and ad spend separately, and keep inventory and cost of goods sold accurate for Amazon, Shopify, Etsy, Walmart and TikTok Shop sellers.
Which accounting software do you use?
We work in QuickBooks Online and Xero. If you already use one of them, we work in your existing file. If you are starting fresh, we help you choose and set it up.
I'm a year behind on my books. Can you catch up?
Yes. Catch-up bookkeeping brings your books up to date from the last reconciled month. We quote it separately from monthly bookkeeping based on how many months need work and how many accounts you have.
What will I receive each month?
Reconciled accounts, a profit and loss statement, a balance sheet and a short list of any questions we need you to answer. You can ask for other reports when you need them.
Do you also prepare my tax return?
We can. Many clients use us for both, which saves time because the books are already reconciled. If you have your own tax preparer, we hand over tax-ready books at year end.
Why don't my Amazon deposits match my sales?
Amazon pays you a net amount after deducting referral fees, fulfillment fees, refunds, advertising and sometimes a reserve. Your real revenue is the gross sales figure, and each deduction is a separate expense. We break every settlement into those parts.
Do you work with A2X or Link My Books?
Yes. If you already use a connector such as A2X or Link My Books, we work with its summaries. If you don't, we reconcile the marketplace settlement reports directly.
My Form 1099-K doesn't match my books. Why?
Form 1099-K reports gross payment amounts, before fees and refunds. If your books only record net deposits, they will not match. We reconcile the 1099-K to your gross sales so the tax return is consistent.
Do I need to collect sales tax on my Shopify store?
It depends on where your customers are. Marketplaces usually collect sales tax on their own sales, but your own store may need to register and collect tax in a state once your sales there pass that state's economic nexus threshold. We track your sales by state so you can see where you stand.
Can a non-resident own a U.S. LLC?
Yes. There is no citizenship or residency requirement to form or own a U.S. LLC. You will need a registered agent in the state of formation, and the LLC will have U.S. filing obligations every year.
Can you form a U.S. LLC for a non-resident?
Yes. We handle the state filing, registered agent, EIN application and operating agreement, then set up your bookkeeping and annual filing calendar so nothing is missed.
Do I need an SSN or ITIN to get an EIN?
No. Owners without an SSN or ITIN cannot use the IRS online application, but they can get an EIN by submitting Form SS-4. We prepare and submit it for you.
Which state should I form my LLC in?
It depends on where you live, where you do business and your plans for the company. Wyoming and New Mexico are popular for low ongoing costs, Delaware is familiar to investors, and your home state is often simplest if you have a physical presence there. We recommend a state after a short call.
Do I need a U.S. address?
Your LLC needs a registered agent with a physical address in the state where it is formed. We set up the registered agent as part of formation.
What do I need to file after my LLC is formed?
Usually a state annual report and, depending on ownership, a federal filing each year: the owner's Form 1040 for a U.S.-owned single-member LLC, Form 1065 for a multi-member LLC, or Form 5472 with a pro forma Form 1120 for a foreign-owned single-member LLC.
How long does formation take?
It depends on the state's processing time and how the EIN is requested. We give you the expected timeline for your chosen state in your quote.
Are state fees included in LLC formation pricing?
No. State filing fees are charged by the state and passed through at cost. We confirm the current fee for your chosen state in your quote.
Do you offer white-label support to CPA and EA firms?
Yes. We prepare returns and workpapers for your review and signature and deliver monthly bookkeeping under your firm's name, protected by an NDA.
Who signs and files the returns?
Your firm does. We prepare the return and workpapers, your reviewer checks them, and your firm signs and files as the preparer of record. Your clients see only your firm's name.
Which tax software do you work in?
We work in all major tax software, including Drake, UltraTax CS, Lacerte, ProSeries, ProConnect, CCH Axcess and others. We work inside the software your firm already uses, through the access you provide. Tell us your setup on the first call.
How do you keep client data secure?
We work inside systems your firm controls, with access limited to assigned files, under a signed NDA, and following IRS Publication 4557 practices.
How much volume do we need to send?
Firms send us anything from a few returns to large seasonal batches. We plan pricing and capacity around your expected volume, so tell us your numbers and return mix.
Can you help outside tax season?
Yes. Many firms keep us year-round for extensions, amended returns, monthly bookkeeping and catch-up work for their clients.
How is pricing structured?
Pricing is custom and based on volume and complexity. Depending on what suits your firm, it can be per return, per batch or a seasonal arrangement. We send a written proposal after the intro call.
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