How to Start an LLC in DC

To start an LLC in Washington DC, you’ll need to follow some required steps like submitting your Articles of Organization and registering with the DC Office of Tax and Revenue. But a lot more is involved along the way. We’ll walk you through what you need to know.

Start a DC LLC

Step 1: Name Your DC LLC

Selecting a name for your Washington DC LLC is the first step in your business registration journey. You’ll need this name to submit formation documents and officially create your LLC in DC.

What your DC LLC’s name must do:

Per DC § 29–103.02, your DC LLC name must contain the words “Limited Liability Company,” “Limited Company,” “Ltd. Co.,” or another approved abbreviation.
And per DC § 29–103.01, your LLC’s name must be different from the names of other businesses registered in the district.

What your DC LLC’s name cannot do:

Your LLC’s name cannot mislead the public. This means that certain words, like “bank” and “insurance” are likely off limits (unless you provide those services).
The name must not be be easily mistaken for a government agency.

How much does it cost to file for a DBA in DC?

It costs $55 to register a DBA (aka trade name) in Washington DC. A DBA is a name you use in the course of business that’s different from the name you used on your LLC Articles of Organization.
You can register a DBA online through your Access DC account. You’ll also need to renew it every two years for $55.

Step 2: Choose a Washington DC Registered Agent

Washington DC statute requires that all LLCs in the district appoint and maintain a registered agent. The agent’s role is to accept service of process, legal mail, and notices from the district on behalf of your business. Then, it’s the registered agent’s responsibility to forward that mail to you in a timely manner.

Your DC registered agent can be an individual resident of the district, or an entity registered to do business there. Either way, they must have a physical DC address where they’re available to accept service of process.

Note that while you or another member of your LLC can be the business’s registered agent, your LLC itself cannot be its own registered agent.

How much does a DC registered agent cost?

The cost for a DC registered agent varies based on the type of agent you choose. Most commercial DC agents cost between $50-$300 a year, depending on the level of service and what’s included. At Registered Agents Inc, our premium service is $200/year. When you hire us to form your DC LLC, we’ll act as your registered agent, too.

Step 3: File Washington DC Articles of Organization

To register your LLC in Washington DC, you’ll file Articles of Organization with the Department of Licensing and Consumer Protection. You can submit the articles by mail or file them online. For online filing, you’ll first need to create an Access DC account.

Here is all the information you’ll need to gather prior to submitting your DC Articles of Organization:

1

LLC name
Remember to include an entity identifier such as “Limited Liability Company,” “Limited Company,” “L.L.C.,” “LLC,” or “L.C.”

2

Principal office address
Include the street address of your business. The address does not have to be in DC, but it can be. When we file your Articles for you, our address will go here.

3

Registered agent name & address
Your agent must have a physical DC address to include here. This is where they’ll accept service of process on your behalf.

4

Effective date
Most business owners want their LLC to form as soon as their Articles are processed. But if you want to select a different start date, you can choose one up to 90 days in the future.

5

Provisions
If you’re forming a Series LLC or a Professional LLC, this is where you’ll say so. Otherwise, most choose to leave this blank.

6

Member/Manager info
Include names, home addresses, and business addresses of those with more than 10% ownership interest. Also include information for managers who control the LLC’s financial and operation decisions, even if they own less than 10% of the entity.

7

Organizer
This is whoever is filing the document. Our info goes here when we form your Washington DC LLC.

How much does it cost to start an LLC in Washington DC?

It costs $99 to submit Articles of Organization and start your LLC in Washington DC.

How long does it take to set up an LLC in DC?

The amount of time it takes to get your LLC set up in the District of Columbia depends on how you submit your Articles of Organization. Filing online is the fastest, generally taking 5-15 business days. Mailed filings are processed slower, taking up to 1.5 months.

Step 4: Get a Basic Business License

Washington DC requires many, but not all, businesses operating in its jurisdiction to obtain a Basic Business License (BBL). You’ll apply for this license once your LLC is registered, typically after setting up business operations.

It takes about 30 business days for your BBL to process. Online and in-person filings are processed the fastest.

To apply for your DC Basic Business License online, you’ll first need to obtain a Clean Hands Certificate. This affirms that your business does not owe more than $100 to any DC government agencies. You can obtain the Certificate through your Access DC account. It will be issued right away unless your business owes money.

Your BBL can also be applied for through your Access DC account. To drop your application off in-person, go to:

DCRA Business License Center
1100 4th St, SW, 2nd Floor
Washington, DC 20024

Note that you will also need to renew your BBL. Most licenses renew on a two-year rotation, but you’ll need to check with your specific regulatory agencies to make sure.

Step 5: Set Up Business Operations

After your LLC is registered in Washington DC, you’ll need to organize the business’s operations and finances. Here are several of the important steps to take to get everything in good running order:

Create an operating agreement.
You’ll want to create an operating agreement for your LLC early on, even though Washington DC doesn’t explicitly require that you adopt one. Your LLC’s operating agreement is where you lay out the rules for how your business will run. For example, your operating agreement will discuss how ownership is divided and what to do if a member leaves. It will also create a blueprint for the day-to-day, like when meetings will be held and where documents are kept. Without an operating agreement, disputes will be more difficult to solve, and you’ll be subject to DC’s general LLC rules.

Get an EIN.
An EIN is a number issued by the IRS that helps identify your DC LLC. It’s free to get, and you’ll likely need one ahead of opening a business bank account or hiring employees. If you don’t get an operating agreement, you’ll encounter situations (like registering with the DC Office of Tax and Revenue) where you’ll need to use your social security number instead.

Set up a business bank account.
Setting up a business bank account is an important part of maintaining the limited liability of your LLC in Washington DC. Keeping business and personal funds separate helps show that you and your business are distinct entities with separate assets and obligations. A business bank account also helps keep your finances organized and provides a central location for members to fund the LLC.

Register with the DC Office of Tax and Revenue.
All LLCs registered to do business in Washington DC need to register with the DC Office of Tax and Revenue. This step comes after registration, but before you apply for your Basic Business License. To register, you’ll need to provide the following information: EIN (or a suitable alternative); business name; entity type; physical addresses for DC locations where you collect sales tax; names, titles, home addresses, and social security or individual taxpayer identification numbers for all principal officers.

Step 6: File BOI Report

Filing a Beneficial Ownership Information (BOI) Report is a new requirement for most LLCs. A federal filing submitted to FinCEN, the BOI Report asks for information about your company and its owners. FinCEN’s goal in collecting this these reports is to reduce the mystery around who is behind America’s businesses.

While the report is free to file, not filing can come with some steep penalties. Failing to submit the report can result in fines up to $591 per day. Forming your Washington DC LLC in 2024 means you’ll have 90 days following registration to file. Form in 2025 and you’ll have just 30 days post-registration to do so.

When you hire Registered Agents Inc to create your DC LLC, let us worry about these deadlines instead by adding BOI Filing at checkout.

Frequently Asked Questions

Does an LLC need a business license in DC?

Probably. Not all DC businesses need a Basic Business License, but most do. Check out the list of business licensing categories to find out more.

How do I register an out of state business in DC?

To register an out of state business in Washington DC, you’ll submit a Foreign Registration Statement. It costs $220 to file. Even if you have a registered agent in a state where you do business, like Maryland or Virginia, you’ll need to get one in DC before you’re able to register your LLC there.

How much is the biennial fee in DC?

The DC Biennial Report fee is $300, and is due by April 1st every other year after your formation date. However, the very first Biennial Report is due the next year after your formation date.

For example, if your formation date is October 21, 2024, then your FIRST Biennial Report will be due by April 1, 2025. Thereafter, it will be due by April 1st every two years (2027, 2029, etc.). (Many people choose to wait to form their LLC until after the new year to avoid paying the $300 report fee so soon after formation.)

If your formation date is February 2, 2025, then your FIRST Biennial Report will be due by April 1, 2026. Thereafter, it will be due by April 1st every two years (2028, 2030, etc.).

When you hire us, we’ll file the annual report for you at no extra cost (you pay only the state fee). We’ll remember when your report is due so you don’t have to!

How are LLCs taxed in DC?

LLCs in Washington DC are taxed as pass-through entities by default. This means profits pass to members, who claim them on personal tax returns. However, DC also has a franchise tax that LLCs need to be aware of. If your LLC makes less than $1 million, you’ll likely owe a minimum of $250 in franchise tax.

Do I have to pay DC franchise tax?

Probably. Washington DC has a franchise tax that applies to both corporations and “unincorporated” businesses, including LLCs.

The current franchise tax rate is 8.25%, and applies to LLCs earning more than $12,000 in annual gross receipts. You can deduct 30% for owner salaries. If gross receipts are less than $1 million, your minimum tax is $250. If receipts total more than $1 million, your minimum tax is $1,000.

Determining exactly how Washington DC’s franchise tax applies to your LLC is no easy task. It may be a good idea to speak with a tax professional to find out what you owe and if you qualify for any exemptions.

Does DC recognize single member LLCs?

Yes. In order to be registered, a DC LLC needs to have at least one member.

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