Forming an Washington DC LLC
(2025 Guide)
2025 LLC Guide
Special Offer alert!
forms your LLC with Northwest for $39 (60% off). Details inside.
How to Start an LLC in Washington DC (Step-by-Step Guide)
Discover how to start an LLC in Washington DC, our step-by-step guide. Learn the essential requirements and process to form your business today.
To establish an LLC in Washington DC, submit the Articles of Organization to the DC Department of Licensing and Consumer Protection (DLCP). The filing fee is $99 and approval typically takes 5 days.
There are 8 essential steps to complete:
Choose an LLC Name
Select a Registered Agent
File Articles of Organization
Create an Operating Agreement
Obtain an EIN
Register for Taxes
Secure a Certificate of Occupancy or Home Occupation Permit
Acquire Business Licenses and Permits
For those who prefer to handle the formation themselves, our free guide below can assist. Alternatively, for a hassle-free experience, we suggest hiring Northwest Registered Agent.
Need to save time?
Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).
(See why Northwest is #1: Northwest vs LegalZoom.)
How much does it cost to start an LLC in DC?
It costs $99 to start an LLC. And then you’ll need to pay additional fees. Some are one-time fees, and others are due every 2 years.
What are these fees for?
The $99 is to file the Articles of Organization – the document that creates an LLC.
The $75 – $125 is for your Certificate of Occupancy or Home Occupation Permit – a mandatory permit required for LLCs operating from a commercial or residential building in DC.
The $200 – $500 every 2 years is for your Basic Business License – a license that allows your Limited Liability Company to do business in the District of Columbia.
The $300 every 2 years is for your Biennial Report – a mandatory filing that keeps your LLC in good standing.
To learn more about LLC Costs, see LLC Costs in DC.
How long does it take to get an LLC in DC?
If you file your LLC by mail, it will be approved in 2-4 weeks (plus mail time).
But if you file your LLC online, it will be approved in 5 business days.
Please see How long does it take to get an LLC in DC to check for any delays.
Here’s how to establish an LLC in Washington DC
1. Look Up Your LLC Name
Begin by checking the availability of your LLC name in the state. This is essential because two businesses within the state cannot share the same name.
Start by searching your desired business name and comparing it with existing businesses in DC. Ensure your chosen LLC name stands out from current businesses through CorpOnline. Additionally, acquaint yourself with DC’s naming regulations to ensure your LLC’s approval. Further details can be found here: District of Columbia LLC Name.
Note:
Most people choose “LLC”.
2. Select a Washington DC Registered Agent
The following step involves selecting a Registered Agent. A Washington DC Registered Agent is an individual or company responsible for receiving legal mail and state notices on behalf of your Washington DC Limited Liability Company.
Who is eligible to be an LLC Registered Agent? You have three options for appointing a Registered Agent:
You
A friend or family member
A Registered Agent Service
Washington DC mandates that LLC Registered Agents must maintain a physical street address within the state. PO Boxes are not permissible. The name and address of the Registered Agent will be included in public records.
If you lack an address in Washington DC or desire increased privacy, you can opt for a Registered Agent Service for your LLC.
We suggest Northwest Registered Agent
One of the aspects we appreciate most about Northwest is their willingness to allow you to use their office address for your LLC filing. This ensures your personal address is not listed in public records.
Additionally, they provide a service to scan any mail addressed to your LLC and upload it to your online account. Northwest offers exceptional customer service, and we trust them as our own Registered Agent.
Special offer:
Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.
(Read our Northwest Registered Agent review.)
3. Submit LLC Articles of Organization
To form an LLC, you must submit the Articles of Organization to the DC Department of Licensing and Consumer Protection (DLCP).
The online filing fee for the Articles of Organization is $99. This fee is a one-time payment to establish your LLC. If you prefer to handle the filing yourself, follow our detailed guide: DC Articles of Organization. Alternatively, you can opt to hire a service to complete the process for you.
Need to save time?
Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).
(See why Northwest is #1: Northwest vs LegalZoom.)
4. Draft an LLC Operating Agreement
An LLC Operating Agreement acts as a complementary document to the Certificate of Formation. While the Certificate of Formation establishes your LLC, the Operating Agreement identifies the owners of the LLC.
Moreover, many banks require an Operating Agreement when setting up an LLC bank account. It is also invaluable if legal issues arise, as it demonstrates the proper management of your LLC. For these reasons, we advise all LLCs, including Single-Member LLCs, to have an Operating Agreement.
Additionally, an Operating Agreement is considered an “internal document.” This means you don’t need to file it with the state or the IRS (Internal Revenue Service). Simply keep a copy with your business records. You can download a free template below. Then, watch our Washington DC Operating Agreement video for a step-by-step guide on how to complete it.
Download a free LLC Operating Agreement:
Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word
(What’s better? See Member-managed vs Manager-managed LLC)
5. Obtain an EIN for Your LLC
The following step is to secure a Washington DC EIN from the IRS for your LLC. Note: An EIN, also known as a Federal Tax ID Number or Federal Employer Identification Number, is essential.
An EIN is needed to:
– Identify your LLC for tax purposes
– Open a business bank account
– Apply for business licenses and permits
How much does an EIN cost? The IRS provides an EIN at no charge.
How long does it take to receive an EIN? Online applications are processed in 15 minutes, while mail or fax applications may take 1-3 months.
How can I obtain an EIN?
– US Citizens/Residents: With an SSN or ITIN, apply online. Follow these instructions: Apply for an EIN online.
– Non-US Residents: You can’t apply online, but you can obtain an EIN via fax or mail. See these instructions: How to get an EIN without an SSN or ITIN.
6. Enroll with the Office of Tax & Revenue
All LLCs in Washington, DC are required to register for taxes with the Office of Tax & Revenue (OTR). To do this, you’ll need your EIN Number from the IRS.
What is the cost of LLC Tax Registration?
Registering your DC LLC for taxes with the Office of Tax & Revenue is free of charge.
How do I register my LLC for taxes?
You can complete your LLC’s tax registration online using the OTR’s web portal, MyTaxDC.
Once your submission is complete, your LLC will be registered for the necessary District of Columbia taxes, and you will be informed about the due dates for these taxes. For a detailed guide with screenshots on how to register for taxes, refer to our DC LLC Tax Registration guide.
Important: After submitting your tax registration, you will receive a Notice of Business Tax Registration letter within 3 to 5 business days. This letter will feature your LLC’s Notice Number in the upper-right corner. You will need this LLC Notice Number to apply for your Basic Business License, which is discussed in further steps.
7. Obtain a Certificate of Occupancy or Home Occupation Permit
All LLCs operating in the District of Columbia are required to have either a Certificate of Occupancy or a Home Occupation Permit. If your LLC plans to own or develop office or commercial space, you’ll need a Certificate of Occupancy. If you work from home within a residential building, a Home Occupation Permit (HOP) is necessary.
What is the cost of a DC Certificate of Occupancy? Typically, the fee for a Certificate of Occupancy is $75 for most LLCs, although it might increase based on the commercial building’s square footage. If you lease office or commercial space, the building’s current Certificate of Occupancy might suffice, so consult with the property owner or management.
How do you obtain a DC Certificate of Occupancy? Most applications for a Certificate of Occupancy are submitted by emailing the relevant forms to the DC Department of Buildings.
What does a DC Home Occupation Permit cost? The fee for a Home Occupation Permit is $122, and it’s mandatory whether you rent or own your home.
How to apply for a DC Home Occupation Permit? Applications for a Home Occupation Permit can be completed online.
For additional details, refer to our guides on the DC LLC Certificate of Occupancy and the DC LLC Home Occupation Permit.
Important: If your business has a physical location in DC or you operate from home in DC, you’ll need the respective Certificate of Occupancy or Home Occupation Permit Number to proceed with obtaining a Basic Business License. If your business lacks a physical presence in DC and you are not working from home there, neither a Certificate of Occupancy nor a Home Occupation Permit is necessary.
8. Obtain Business Licenses and Permits
All LLCs in the District of Columbia are required to have a Basic Business License (BBL) to legally operate. Before you apply for an LLC Business License, ensure you have the following documents:
– LLC Certificate of Organization
– LLC’s EIN Number
– Notice of Business Tax Registration letter
– Certificate of Occupancy or Home Occupation Permit
These documents are necessary when you apply for your BBL.
How much does a DC Basic Business License for an LLC cost? The cost of a Basic Business License depends on your business’s revenue-generating activities, known as your business’s endorsement category. Typically, a BBL ranges from $200 to $500 and is valid for two years. If your business doesn’t fit into any specific endorsement category, you can opt for the “General Business License” endorsement category, which costs $325 every two years.
Note: All Basic Business Licenses must be renewed biennially unless you purchase a 4-year license, in which case renewal is every four years. Additionally, depending on your LLC’s location, you might need a local business license or permit.
For instance, if you plan to open a daycare, you may need a license from the city or county. For more details, visit our DC Business License page.
What should I do after my LLC is approved?
Once your LLC is approved, several important actions are necessary.
File your LLC Biennial Report
Every LLC in the District of Columbia is required to submit a Biennial Report every two years. This report ensures your LLC remains in good standing with the state.
How much does an LLC Biennial Report cost?
The filing fee for the DC Biennial Report is $300 every two years.
When is the Biennial Report due?
Your LLC’s Biennial Report is due by April 1st every two years.
When is my first Biennial Report due?
The first Biennial Report is due the year after your LLC’s approval. For instance, if your LLC was approved on February 15, 2025, your first report is due by April 1, 2026, and then by April 1st every two years thereafter.
How do I file my LLC Biennial Report?
You can submit your LLC’s Biennial Report online or by mail. We recommend online submission as it is more straightforward. Follow our step-by-step guide here: DC LLC Biennial Report.
Open an LLC business bank account
Opening a business bank account for your LLC is advisable. It simplifies accounting and record-keeping for your business finances. Having a separate account also preserves your personal liability protection by keeping your business and personal finances distinct.
File and pay taxes
LLCs themselves don’t pay federal income tax. Instead, LLC Members pay taxes through their personal tax returns. In other words, the LLC owners pay taxes as part of their individual tax filings.
How will my LLC be taxed?
By default, the IRS taxes an LLC based on the number of its owners: A Single-Member LLC is taxed like a Sole Proprietorship, while a Multi-Member LLC is taxed like a Partnership. Alternatively, you can elect for your LLC to be taxed as a C-Corporation or S-Corporation.
In addition to federal taxes, there are state and local income taxes and sales tax. For more details, see District of Columbia LLC Taxes.
Helpful Resources
Corporations Division
(LLC filing)
Website: DLCP: Corporations Division
Phone: 202-442-4432
Department of Buildings
(Certificate of Occupancy or Home Occupation Permit)
Website: DC Department of Buildings
Phone: 202-442-4576
Business Licensing Division
(Basic Business License)
Website: DLCP: Get a Business License
Phone: 202-442-4311
Small Business Resource Center
(General Advice and Resources for Small Businesses)
Website: DLCP: Small Business Resource Center (SBRC)
Phone: 202-442-4538
Office of Tax & Revenue
(Registration and payment of DC taxes)
Website: DC.gov: Office of Tax and Revenue
Phone: 202-727-4829
How to Start an LLC in Washington DC FAQs
Can I start an LLC online in DC?
Yes, you can initiate your LLC online. The fee for filing the Articles of Organization is $99. When you apply online, your LLC will be approved within 5 business days.
What are the benefits of an LLC?
One major benefit of an LLC is the protection of personal assets. This means that if your business faces a lawsuit, your personal belongings such as your home, vehicles, and bank accounts are safeguarded. This protection extends to all LLC members, whether you have a Single-Member LLC or a Multi-Member LLC. All owners are shielded from business debts and liabilities. This protection isn’t available if you operate as a Sole Proprietorship or Partnership, where owners are exposed in lawsuits. Due to this, LLCs are a more favored business structure.
Another advantage is LLC pass-through taxation, where the LLC itself doesn’t pay federal income taxes. Instead, profits are passed through to the LLC Members, who then pay taxes on their personal returns. Similarly, DC income taxes align closely as the district honors the federal tax treatment of your LLC. For more details, refer to How are LLCs taxed.
Is DC a good “state” to start an LLC?
Whether DC is suitable for starting an LLC depends on your location and business operations. If you reside or conduct business in DC, you should establish your LLC there. Discussions about tax rates and state benefits are irrelevant if they don’t pertain to where you live and work. For example, starting an LLC in Delaware but living and operating in DC means you must also register your Delaware LLC in DC, incurring additional fees and DC taxes. This results in extra costs with no benefits. Therefore, if you live and work in DC, it’s a good choice to start your LLC there. Otherwise, it’s not advisable.
What is the difference between a Domestic LLC, a Foreign LLC, and a PLLC?
The distinctions between Domestic LLCs, Foreign LLCs, and Professional LLCs revolve around their formation location and business purpose. A Domestic Limited Liability Company is created in its “home state” where the owner resides and operates. For instance, if you live and work in Georgia, you would form your Domestic LLC there.
A Foreign Limited Liability Company is established in a state different from its home state. Here, “foreign” means the LLC is foreign to its home state. If you expand your Georgia-based LLC into Florida, you’d register it as a Foreign LLC in Florida. Essentially, LLCs are state-level entities, so doing business in multiple states requires forming or registering an LLC in each state. You form a Domestic LLC in your home state and a Foreign LLC in the other state.
What is a PLLC?
A Professional Limited Liability Company (PLLC) is an LLC for providing “professional services.” “Professional” refers to business types needing special permissions like licenses, registrations, or state certifications to operate legally. Professions such as architects, attorneys, social work counselors, doctors, and veterinarians often form PLLCs. Learn more about PLLCs, their availability, and strict requirements in: What’s a Professional LLC? For more on Foreign and Domestic LLCs, see: Foreign LLCs by State, Difference between Domestic LLCs and Foreign LLCs.
What happened to the DCRA?
The DC Department of Consumer and Regulatory Affairs (DCRA) was previously responsible for LLC processing. In October 2022, it was replaced, and its duties were divided between two new departments: The Department of Buildings and the Department of Licensing and Consumer Protection.
About Us
We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.
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- +1 (646) 347-3833
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