A Washington DC LLC is one of the most simple, cost-effective, and quick business structures to form. Even so, navigating the formation process can seem daunting without clear guidance and an actionable plan.
In this How to Start an LLC in Washington DC guide, we’ll break down everything you need to know to form your LLC, from the steps you’ll need to take to get started to maintaining your structure.
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In order to form an LLC in Washington DC, you’ll need to complete the following steps:
In the sections below, we’ve broken down each of these steps in more detail.
The first thing you’ll need to do before getting started is picking the right name for your LLC. This is important because your business’s name will need to represent your brand accurately, as well as be as memorable as possible.
In Washington DC, all LLC names need to abide by the following statutory guidelines in order to be accepted by the Secretary of State:
You can find the full list of these naming requirements for LLCs in Washington DC under D.C. Code § 29-103 within the state’s statutes.
Keep in mind that even though picking an LLC name in itself has no cost, there are certain fees that can be associated with the overall process.
If you’re not yet ready to launch your business and still need a little more time, you can choose to reserve your desired LLC name for later by submitting an Application for Name Reservation with the District of Columbia Government Corporations Division ($50 fee).
This can be done by mailing in the name reservation form above or by submitting an online request using the DC Department of Licensing and Consumer Protection’s (DLCP) CorpOnline system.
Either way, if your requested name is available, this reservation will keep anyone from being able to take it for up to 60 days.
It’s important to be aware that false statements on this application are taken seriously, and could lead to you facing fines of up to $1000 and/or prison time according to D.C. Code § 22-2405.
Note: To be able to successfully reserve a name, it must not be currently in use by any business entities within Washington DC. The way to check this is by performing a business entity search on the DLCP’s website.
Another potential cost associated with naming your LLC is a “doing business as” (or DBA) name. This is essentially a nickname that you can choose to register for your business to operate under — particularly if you’re not content with your LLC’s legal name.
Registering a DBA name can be done by filing a TN-1 Trade Name Registration form with the Secretary of State and paying a $55 fee.
Note: In Washington, trade names must be renewed on a biennial basis ($55 renewal fee). For your first renewal, the deadline is April 1 of the second year following the registration of your LLC’s trade name.
Finally, you’ll want to focus on securing a good domain name (which is your website’s URL address) for your business. For this, try to focus on choosing one that’s easy for customers to remember, relevant to your business, and accurately reflects your brand.
After confirming the domain name you want to use is actually available, you can purchase it through a trusted registrar.
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The next step you’ll need to take toward forming your LLC is to pick a registered agent.
This is an individual or business entity that accepts legal correspondence on behalf of your business, such as service of process, notice of lawsuits, and official government communications; you’re required to continuously maintain one as long as your LLC is active.
Your registered agent can be an individual or business entity, but will need to satisfy the following requirements according to DCOC § 29-104:
Keep in mind that you can choose to act as your own registered agent if you’re looking to save money, though we don’t typically recommend this as you’re much more likely to suffer fines and penalties due to non-compliance than if you just hire a professional service.
On top of this, you’ll lose any anonymity your LLC would have given you since your name, address, and contact information will be publicly available.
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Note: To have a look at some of our other top recommendations, you can also check out our Best Registered Agent Service of 2024 guide.
In Washington DC, the Articles of Organization is the filing document that you’ll need to submit with the Secretary of State in order to officially register your LLC (this is also referred to as the Certificate of Formation in other states).
For a domestic LLC filing their formation documents this will cost $99, while a foreign LLC would instead be expected to pay $220.
To complete your Articles of Organization, you’ll need to have the following information available:
In the sections below, we’ve discussed the two primary ways of filing this document with the Department of Licensing and Consumer Protection (which was previously known as the Department of Consumer and Regulatory Affairs) in more depth.
In almost all cases, filing your LLC formation documents online through the DCLP’s CorpOnline system is the quickest and easiest submission method.
With that said, you’re also able to submit these documents by mail or in-person by printing out and completing either Form DLC-1 (domestic entities) or a Foreign Registration Statement (foreign entities).
Once you’ve filled out the relevant form for the type of LLC you’ll be organizing, you’ll be ready to go ahead and send it to the following address:
Business and Commercial Section
Secretary of State
P.O. Box 13697
Austin, TX 78711
Note: Be aware that if you submit your documents by mail, you’ll be required to include a cover letter alongside your submission.
Once this is completed, the next step you’ll need to take is to create an operating agreement.
This is an internal document that clearly outlines the ownership and management structure of your company in order to reduce potential future conflict.
While this document isn’t legally mandated in Washington DC, all LLCs are recommended to have one as it can help maintain both: smooth operations and your LLC’s corporate veil (which is what protects you from personal liability).
A number of companies provide drafting services for operating agreements online, typically for a fee of around a few hundred dollars. However, it’s quite easy to sort this out by yourself if you want to save money, and you can even find a number of free templates online to help with this.
Even though it’s not a legal requirement (unless your LLC has employees or multiple members), all Washington DC LLCs should apply for an Employer Identification Number (EIN).
This is a free, nine-digit number used by the IRS to identify your business and keep track of its tax reporting — much like a Social Security Number (SSN) for individuals.
You’ll need an EIN to be able to:
On top of this, using an EIN instead of a Social Security Number (SSN) helps to protect your personal information and safeguard your anonymity as the business owner of your LLC.
You can quickly apply for an EIN for your LLC online through the IRS website. You’re also able to submit a paper application using Form SS-4 either via fax to (855) 641-6935, or by mailing it to the following address:
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Note: Don’t worry if you don’t already have an SSN, it’s not necessary to have one in order to apply for an EIN — instead, you can just leave Section 7b of the application blank and call the IRS on (267) 941-1099.
Starting January 2024, the vast majority of LLC owners will be required to file a Beneficial Ownership Information (BOI) Report with the US Financial Crimes Enforcement Network (FinCEN).
This is part of an initiative by the U.S. government to stop individuals and entities engaging in illegal or unethical activities from being able to conceal this using “opaque ownership structures”, like shell companies, to hide their true identities.
Existing LLCs will be able to file this report anytime between January 1, 2024, and January 1, 2025, while new LLCs will have up to 90 days after the date they were initially formed to do so (30 days for LLCs formed after the start of 2025).
Keep in mind that failure to file your LLC’s BOI report on time can result in exorbitantly high fines (i.e., $591 per day) or even jail time (up to two years).
Note: Not every LLC owner is required to file a BOI report. For example, companies with more than 20 full-time employees, accounting firms, and banks are exempt. For a full list of filing exemptions, you can have a look at FinCEN’s website.
In order to keep operating legally in the state of Washington DC, there are a couple of things you’ll likely need to periodically take care of, including:
Don’t worry if you’re not sure how to complete each of these steps, as we’ve detailed all the information you’ll need to know in the sections below.
Before your LLC can begin its operations within Washington, D.C., it will be required to first obtain a Basic Business License (BBL), regardless of how much revenue it generates.
The term “Basic Business License” is an umbrella for a range of individual licenses which regulate more specific business activities, including food services and the sale of flammable liquids.
Your LLC will need to obtain the relevant licenses for the particular activities it engages in. Each license will have its own distinct requirements, with fees typically ranging from $99 to over $3,000.
If your business isn’t covered under any of these specific categories, it will be necessary to obtain a General Business License (GBL) instead, which costs $99.
To be able to apply for this license, you’ll first need to acquire an Employer Identification Number (EIN) and register your LLC with the Office of Tax & Revenue. Depending on your business location, you will also need either a Home Occupation Permit or a Certificate of Occupancy.
Once these steps are completed, you can apply for the Basic Business License either online or by turning up at the My DC Business Center kiosk located in the Business License Center.
Note: Licenses must be renewed every two or four years (depending on which one you have). Applications for renewals will open as early as 75 days before your license’s expiration date.
To ensure your LLC stays in good standing in Washington, D.C., you must submit a biennial report to the DC Department of Licensing and Consumer Protection by April 1 of each odd-numbered year ($300 fee).
The report is typically submitted online using the CorpOnline platform, though in-person and mail filings are also available by delivering Form BRA-25 to the following address:
Department of Licensing and Consumer Protection
Corporations Division
PO Box 92300
Washington, DC 20090
This report updates the District with crucial information about your LLC, including its:
Note: It’s important to be timely when filing this report, as missing the April 1 deadline will result in a $100 late penalty fee — continued non-compliance after this could even lead to administrative dissolution.
Choosing Washington DC as the location for your LLC offers several compelling advantages.
On top of being a global hub with access to a number of international markets, DC boasts a highly educated workforce — with over 61% holding a bachelor’s degree or higher.
Additionally, Washington DC provides robust support for businesses through various incentives and programs, including tax credits, grants, and special financing options aimed at fostering growth and innovation.
In particular, the city’s Global Soft Landing Program is a great example of this as it helps foreign companies establish a presence in the U.S. market — ensuring they start strong and also have the resources to continue expanding.
However, there are notable challenges associated with forming a business in DC. The cost of living and operating a business is significantly higher compared to other popular states like Texas or Florida, which often provide lower taxes and more business-friendly regulations.
Regardless, keep in mind that the best state to form your LLC is almost always the state that you will be operating in; this is because otherwise you’ll likely be required to register as a foreign LLC in your home state, meaning that you’ll need to pay registration and maintenance fees twice.
Recommended: More than 84% of our readers form their LLC through a specialized LLC formation service in order to save time and avoid being caught up in procedural rigmarole.
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Mailing Address:
Corporations Division
PO Box 92300
Washington DC 20090
Physical Address:
1100 4th Street, SW
Washington, DC 20024
Monday, Tuesday, Wednesday, and Friday: 8:30 a.m. to 4:30 p.m.
Thursday: 9:30 a.m. to 4:30 p.m.
Contact Information:
Email: dcra@dc.gov
Phone: (202) 442-4400
The minimum amount you can expect to pay in order to establish an LLC in Washington DC is $198. This should cover the cost of both filing your Articles of Organization and obtaining a Basic Business License.
However there are a number of extra fees you may also be expected to pay, which we cover in more detail in our Washington DC LLC Cost guide.
Yes, you can form an LLC in Washington DC. To do so, you’ll need to select an acceptable name, appoint a registered agent, file your Articles of Organization with the DC Department of Consumer and Regulatory Affairs, and obtain a Basic Business License.
You can read more about each of these steps in our How to Start an LLC in Washington DC guide.
Starting an LLC in Washington DC offers several benefits, the biggest one being limited liability protection — which shields personal assets from business debts and liabilities.
More generally, DC provides a supportive environment with various tax incentives, access to a highly educated workforce, and proximity to influential international institutions; all of which enhance opportunities for business growth and networking.
In the District of Columbia, LLCs are subject to both federal and local taxes. For the most part, entities with this business structure are generally taxed like a sole proprietorship or partnership, meaning profits and losses and sales tax generally “pass through” to managers/members.
However, LLCs are also required to pay the DC Franchise Tax, while those with employees are subject to employment taxes.
Information on this page was researched and gathered from a multitude of sources and was most recently updated on September 5, 2024
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