Starting a DC LLC is a thrilling endeavor, and perhaps you’re already envisioning your business name etched into the annals of District of Columbia history — right next to Ben’s Chili Bowl and the iconic “Taxation Without Representation” license plates. If navigating the DC bureaucracy has you befuddled, you’re in good company. It’s almost as perplexing as figuring out which side of the Metro escalator to stand on so you don’t get mowed down by impatient Washingtonians.
Much like deciphering the mysterious roundabouts of Dupont Circle, forming an LLC in our nation’s capital has its challenges. We’re here to steer you safely through the red tape and endless loops of paperwork. Our guide provides a Capitol tour, if you will, of each step, from inception to your official DC LLC status. With us in your corner, you can skip the anxiety and get straight to planning your ribbon-cutting — or Zoom-launching — ceremony.
Take note that this guide orbits around the creation of domestic LLCs in the District of Columbia, not a foreign LLC or professional limited liability company (PLLC). If you’re planning on conquering states beyond the Beltway with your business, or have a specific professional license in hand, you might need a different map.
In any case, follow our five-step process to make your DC LLC not just a dream but an official, local-government-recognized reality.
Find a unique name. Naming your LLC in Washington, DC, is often the most enjoyable and creative part of the setup process. When selecting an official name, consider one that helps market your brand by easily communicating the goods or services you offer. It’s a good idea to come up with a few memorable names and jot them down on a list during this step.
Once your list is ready, you can go online to the DC government website to do some research so you can lock in your company’s name.
Washington, DC, LLC names must be unique within the District, so if another company has already registered the name you want, you’ll need to choose another one.
To conduct a search to see if your desired name is available, you’ll need to create a login to the District of Columbia Department of Licensing and Consumer Protection (DLCP) (formerly the Department of Consumer and Regulatory Affairs) web portal. From there, you can search if the name you’ve chosen is available. For more detailed instructions, see our District of Columbia name search page.
Once you’ve found a name you like, you can move on to the next step. Be sure to also review the statute on naming your LLC and ensure you don’t include words that aren’t allowed, such as words that could cause your LLC to be mistaken for a financial institution or a government agency.
Next, choose an official LLC designator. This is a suffix at the end of your business name that identifies it as an LLC. For instance, if you chose the name “Lisa’s Designs,” you’ll need to add a designator at the end, such as “Lisa’s Designs, LLC.” You can choose from the following list of approved designators:
Visit the United States Patent and Trademark Office (USPTO) website to see if your business name or logo is federally trademarked. Trademarks can also happen at the state level. However, in DC, you can only do this at the federal level since there is no DC trademark law.
Consider a website domain name for your Washington, DC, LLC. When coming up with a business name, it’s wise to consider if you can secure a matching domain name so that your future website can be easily found online.
We have a tool to help you do a preliminary domain name search, and our domain name registration service can help you secure an online name that will best serve your company.
By now, you hopefully have your company’s official name. But if you’re not ready to file your LLC paperwork yet, it’s a good idea to reserve your name with the DC government. You can do this by completing a Name Reservation Registration and Transfer Form and paying a filing fee. The reservation is good for 120 days.
While searching for a name, you might come across a DBA form. A DBA, or “doing business as” form, is paperwork you’ll fill out if you choose to operate under a name other than your registered LLC name. In DC, the term for a DBA is “trade name.” For instance, if your company’s registered name is “Custom Concepts Agency, LLC,” but you sell your services as “CC Agency,” you’ll need to register this secondary name as a trade name. You’ll need to pay a fee to register your trade name with the DC government.
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Designate your LLC’s registered agent. Once your Washington, DC, LLC has been officially named, you’re ready to appoint a designated registered agent. All states require LLCs to choose a registered agent, and so does DC.
A Washington, DC, registered agent is the person or company that works on your behalf to receive and pass on certain government correspondence and legal notices, such as subpoenas. This means that your registered agent in DC might receive sensitive paperwork at any point throughout the business day.
As a result, your Washington, DC, registered agent will need to hold regular office hours at a physical street address in DC. They must be present during the workday, and their operating address cannot be a P.O. box. The agent can be either a resident of DC or a for-profit corporation with an office in DC.
Some Washington DC LLC owners decide to act as their own registered agent, and you might wonder if you should do the same. While it’s perfectly legal to be your own registered agent, there are some important things to consider before making this decision.
Being your own agent ties you to the office all day, and being served with a lawsuit in front of clients can be bad for business. A registered agent service like ours can help you avoid that.
Complete and submit your Articles of Organization. Now that your name is ready and you’ve chosen a registered agent, it’s time to file your Washington, DC, LLC’s official paperwork. Your Articles of Organization, sometimes referred to as a Certificate of Organization in some states, will officially register your company with the District of Columbia’s government.
Filing official government documents like this can be intimidating and/or complicated for many people. With our business formation plans, our professionals handle the filing for you to make sure it’s done quickly and correctly the first time. Although we can handle this for you, we’ll show you how the process works below.
You can register your Washington, DC, LLC by filling out the Articles of Organization form, paying a $99 fee, and submitting it online or by mail via a check. Note that if you mail your forms, you’ll also need to include Form RA-1, which is the registered agent’s written consent form. If you file online, you don’t need to worry about this.
You’ll need to fill out the following fields when completing this form:
You can have us handle filing your Washington, DC, Articles of Organization. Once the DLCP approves your Washington, DC, LLC, your paperwork will be available from your ZenBusiness dashboard, where you can keep it and other important paperwork digitally organized.
Once you get your physical paperwork back from the DLCP approving your new Washington, DC, LLC, you’ll want to keep it in a safe location along with your other important documents, such as your operating agreement, member certificates, contracts, compliance checklists, transfer ledger, etc.
We offer a customized business kit to help you keep these important documents organized and looking professional.
Adopt an operating agreement. An operating agreement is a contract that details your Washington, DC, LLC’s structure and key rules and regulations about company operations. In Washington, DC, you’re not required to have an operating agreement, but getting one can help your company run more smoothly and prevent and resolve conflicts between members and other vested parties.
Your District of Columbia LLC’s operating agreement lays out how your company will be run, detailing your management style and member powers and limitations. It can even explain member voting structures to help handle disagreements if they arise. You’ll want to make sure all members read, agree to, and sign the operating agreement.
Although operating agreements are considered a smart move for Washington, DC, LLCs with multiple members, they can also be beneficial even if you’re the only member. Here’s why:
Creating an operating agreement requires some time since it details how your LLC will be run. Luckily, you don’t have to construct this all from scratch. If you’re unsure of how to create an operating agreement, we offer a customizable template to help get you started.
Get an Employer Identification Number (EIN). Now that you’ve officially registered your company as an LLC in Washington, DC, you’re ready to get your tax information set up with the Internal Revenue Service (IRS). To do this, you’ll apply for an Employer Identification Number (EIN).
Think of an EIN like your business’s Tax ID Number (also referred to as a Federal Tax Identification Number). It helps identify your limited liability company to the government and can be used when filing taxes and hiring and paying employees.
In DC, you’re legally required to have an EIN so that you can get a Basic Business License (more on that later). Also, most banks require an EIN to open a business bank account.
You can get your LLC’s EIN through the IRS website, by mail, or by fax, but if you’re unfond of dealing with that particular government agency, we can get it for you. Our EIN service is quick and eliminates the hassle.
You must also register your new business with the DC government. You’ll do this by completing the tax registration form on the District’s online tax portal, MyTax.DC.gov. You’ll need the following information:
A business license is also required before you can start doing business in DC. See the question “Which licenses and insurance are required for an LLC in the District of Columbia” in the FAQ below for more information or go to the DC Business Licensing Portal.
Once you’ve secured an EIN, you’ll be able to open a business bank account. Having separate accounts for your business and your personal banking is critical for sorting out your finances at tax time and helps you avoid commingling funds.
Commingling funds can not only make your taxes more difficult, but could also be used against you if someone takes you to court to challenge whether you and your LLC are truly separate entities.
We offer a discounted bank account for your business. This allows for unlimited transactions, online banking, a debit card, and more. If you want to authorize others in your business to use the account, then we offer a banking resolution template to simplify the process.
For further help managing your business’s finances, try ZenBusiness Money. It can help you create invoices, receive payments, transfer money, and manage clients all in one place.
At ZenBusiness, we believe every aspiring entrepreneur should have the tools and support necessary to create a business, which is why we’ve made it easy with our free LLC service. We handle the complexities of starting an LLC in DC, while you focus on your business. Along with LLC formation, we provide Worry-Free Compliance services and more to keep your business in good standing.
With expert support on hand every step of the way, we have what you need to run and grow your business effortlessly. Contact us today to get started and join the hundreds of thousands of businesses we’ve helped launch.
Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.
ZenBusiness is a financial technology company and is not a bank. Banking services provided by Thread Bank; Member FDIC. The ZenBusiness Visa® Debit Card is issued by Thread Bank pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa debit cards are accepted. Your funds are FDIC insured up to $250,000 through Thread Bank; Member FDIC.
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The government fees for forming a DC LLC can range from around $99 to $370, depending on factors such as whether you choose to reserve your business name and whether you choose expedited filing.
Note that fees change over time, so you should check the DC Department of Licensing and Consumer Protection website for the most recent fee schedule.
Additionally, in the District of Columbia, LLC owners must obtain a Certificate of Occupancy before acquiring space for their office. There’s a fee associated with this that is based on the square footage of the building. This application can be filled out online and must be approved by the government before an office space can be leased. You can view the full requirements on the DLCP website.
If you run your LLC out of your D.C. home (regardless of whether you own or rent), you’ll need a Home Occupation Permit (“HOP”), which carries a small fee. Follow the instructions on the DLCP site for applying. These permits are only for residentially zoned buildings.
When starting a business, there are different types of business entities you can choose from. Many small businesses opt to form an LLC because of the flexibility this business type offers. An LLC makes it easy to keep your business assets and liabilities separate from personal accounts. This type of company also offers tax benefits. Lastly, forming an LLC is easier than forming a corporation.
Here are the primary benefits of setting up an LLC in DC:
Would you like to learn more about the LLC business structure? Get the full scoop in our guide to LLCs.
The processing time for your LLC will vary depending on how your Articles of Organization are filed and a variety of other factors. If you apply online, expect your request to take anywhere from five to seven business days. If you file via mail, it can take approximately three weeks, not counting the time in transit.
DC has options for expediting your filing for an additional fee. You can choose from same-day service to three-day service. If you file your Articles in person, you’ll automatically be charged the same fee as the three-day expedited service.
No. While there are various forms you’ll need to file with the District of Columbia, when setting up your LLC, you don’t need to file your operating agreement. This agreement will help detail how your LLC is run and managed but does not have to be provided to the government since it’s not required by law.
LLC owners by default only pay federal taxes on their personal income from the LLC. The LLC isn’t separately taxed.
Some LLCs (particularly those with high earnings) may choose to file taxes as either an S corporation or a C corporation. This option can have some advantages for certain LLCs. You can learn more about how these methods of taxation compare on our LLC vs. S corporation and LLC vs. C corporation pages.
In evaluating these options, we recommend getting advice from a qualified tax professional.
As mentioned above, forming an LLC has many tax benefits, such as exemption from double taxation. However, you’ll want to learn how your LLC will be taxed in D.C. and what decisions you’ll need to make to keep your company tax compliant. Many LLCs opt to work with a trusted accountant or tax specialist to ensure they’re following all tax laws required in DC.
We’ll walk you through a few federal and D.C.-specific tax requirements for LLCs:
Yes. In the District of Columbia, you’re allowed to form a Series LLC. A Series LLC refers to one or more LLCs that are nested under a parent LLC. This business structure helps insulate an LLC from the liabilities of the others in the series.
Before doing business in the District of Columbia, all LLCs must have a Basic Business License (BBL). There are several prerequisites for getting a BBL, including having your Articles of Organization approved, registration with the Office of Tax and Revenue, an EIN, and either a Certificate of Occupancy or Home Occupation Permit. You can apply in person, by mail, or online. The fees will depend on what category your business falls into. If you have questions about licensing in DC, contact the Business Licensing Division at (202) 442-4311.
In addition to the BBL, you’ll need to make sure your LLC has all the licenses and permits it’s required to have by law. Unfortunately, because licensing varies by industry and location and can occur on the federal and local levels, there’s no central place to check to see if you have all the licenses and permits you need. You’ll have to research your licensing needs.
If you’d rather not do all this research yourself, or if you just want the peace of mind to know that your business has all the business licenses and permits it’s legally required to have, our business license report service can do the work for you.
The insurance your business will need depends on a variety of factors, such as whether you have employees or company vehicles.
D.C. requires your business to have workers’ compensation insurance if you have at least one employee. For more on what types of insurance your company may need, visit the District of Columbia Department of Insurance, Securities and Banking.
A couple of terms you may have come across are “foreign” and “domestic” LLCs. A foreign LLC is a company that was created outside of the District of Columbia and carries out business and services in the D.C. territory.
A domestic LLC is one that was formed in the District of Columbia and carries out business and services in the D.C. area.
It’s important to always register your LLC in the state or territory where you intend to conduct business.
Over time, your operation might change. You may have new members join, decide to switch your registered agent, or adopt a new business name.
Whenever there’s a substantial change to your business, you’ll need to file an amendment with the District of Columbia government.
Follow the below steps for each change you need to report:
Change your registered agent’s information
Change your LLC name
Add or remove an LLC member
To avoid substantial fees, try to make all updates at one time, so you’re only amending your Articles of Organization only once.
In addition to amending your documents with the District of Columbia government, you should also update your operating agreement to reflect the new changes.
Your D.C. biennial report is due every other calendar year by April 1. This form asks for the name of your LLC, the state or territory where it was formed, your principal operating address, your registered agent’s name and address, a brief statement of business conducted in the past two years, details on all members, and your signature.
You can submit this form online via the District of Columbia business portal or via mail. You’ll be required to pay a filing fee and an additional fee if your report is late.
We can help you with your biennial report in a couple of ways. Our annual report service will help you file your biennial report, and our Worry-Free Compliance service not only helps with filing your biennial report but also sends you other important compliance reminders and helps you with two amendment filings each year.
At some point, you might find that you need to dissolve your LLC. Whether you’re forming a new business or closing your doors, to end your LLC, follow the below steps:
You’ll need to pay a fee when dissolving your LLC. You can file and pay online or through the mail.
For more information, visit our District of Columbia business dissolution guide.
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