Who should form an LLC in Washington DC?
Anyone who lives in Washington DC or runs their business from there. If you form in another state but operate in Washington DC, you will usually have to register there as a foreign LLC anyway, paying both states' fees. See home state or another state.
How do you form an LLC in Washington DC, step by step?
Choose and check the name
Search the state's business records and include "LLC", "L.L.C." or "Limited Liability Company" in the name.
Appoint a registered agent
A person or company with a physical street address in Washington DC. See what a registered agent is.
File the Articles of Organization
Online through the DC business portal, or by mail, with the $99 fee. Register with the Office of Tax and Revenue through MyTax.DC.gov, then apply for the basic business license.
Get an EIN and sign an operating agreement
The EIN is free from the IRS. See LLC operating agreement.
Register for state taxes
Sales tax and payroll as needed. Then note the first yearly filing date.
What does Washington DC require every year?
A biennial report every two years, $300, due by April 1, with the first due in the year after formation. A late report carries a $100 penalty, and an LLC that does not file can be administratively revoked. The basic business license is renewed separately on its own cycle.
For deadlines, fees and late penalties in detail, see Washington DC LLC yearly filings.
What is the basic business license?
A license from the Department of Licensing and Consumer Protection required for most businesses operating in DC, with categories and fees that depend on the activity. Applying requires tax registration and a Clean Hands certification showing no significant unpaid DC debts. A home-based business may also need a home occupation permit.
What is the unincorporated business franchise tax?
A DC tax at 8.25% on the net income of unincorporated businesses, including LLCs taxed as partnerships or sole proprietorships, generally where gross income exceeds $12,000. There is an exemption for businesses where most income comes from personal services by the owners and capital is not a material factor, which covers many consultants and professionals. A minimum tax applies to businesses that file. Owners still pay DC income tax on their shares if they live in DC.
What do the first two years cost?
| Item | Cost |
|---|---|
| Articles of Organization | $99 |
| Basic business license | Depends on the activity |
| First biennial report, by April 1 the following year | $300 |
Should you file it yourself or use a formation service?
Filing yourself costs only the state fee, and the Washington DC filing is short enough for most owners to complete. A formation service saves time, can act as your registered agent and may send reminders for yearly filings, but compare total yearly costs: low headline prices are often paired with paid add-ons such as expedited filing, operating agreements or EIN applications, which you can do yourself free. Whichever you choose, keep the approved filing, the EIN letter and your operating agreement together. See how much an LLC costs.
Can a non-resident form an LLC in Washington DC?
Yes. Washington DC has no residency or citizenship requirement for an LLC's members or managers. You need a registered agent with a Washington DC street address and an EIN; a foreign owner without a Social Security number applies for the EIN on Form SS-4. A single-member LLC owned by a foreign person files Form 5472 with a pro forma Form 1120 every year, even with no US income. See can a non-resident own a US LLC and annual filings for foreign-owned LLCs.
What happens if you miss a required report?
The state usually charges a late fee and marks the LLC as not in good standing, which can block a certificate of good standing, a bank account or a loan. If the filing stays overdue, the state can administratively dissolve the LLC, ending its liability protection and its claim to the name. Reinstatement means filing every missing report and paying the fees owed, so put the dates in your calendar. See reinstating a dissolved LLC.
Which Washington DC taxes apply to an LLC?
DC residents pay DC's graduated income tax on their share of profit; owners living in Maryland or Virginia pay their home state instead, while the business may still owe the unincorporated business tax. DC charges sales tax on many goods and some services; register with the Office of Tax and Revenue if you sell taxable items.
If you sell online, see Washington DC sales tax for online sellers.
Federally, a Washington DC LLC is taxed like any other LLC. See how LLCs are taxed. For a side-by-side view of state costs, see how much an LLC costs.
Want your Washington DC LLC formed?
We file your Articles of Organization, arrange the registered agent and EIN, and keep track of every Washington DC deadline for you.
Questions people ask
How much does it cost to form an LLC in Washington DC?
$99 for the Articles of Organization, plus a basic business license.
When is the DC biennial report due?
By April 1 every two years, starting the year after formation, for $300.
Do DC LLCs pay the unincorporated business tax?
Many do, at 8.25% of net income, unless an exemption such as the personal services exemption applies.
Do I need a DC business license?
Most businesses need a basic business license from the Department of Licensing and Consumer Protection.
Sources
Every fee, date and rule on this page was taken from these official and primary sources.
- DC Department of Licensing and Consumer Protection: Corporations
- DC Office of Tax and Revenue: Unincorporated business franchise tax
- IRS: Get an employer identification number
- IRS: Employer identification number, including international applicants
Rules and fees change. If you are reading this long after October 1, 2026, confirm the figures with the source before you rely on them.
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This guide is general information. It is not tax or legal advice for your situation.