Are you looking to start a new business in Washington DC? Along with registering your company, one of the most important steps in the business formation process is making sure you have all the licenses and permits your company needs to operate legally.
But what business licenses and permits are companies in Washington DC required to have? It turns out that the answer to this depends on several factors, including your business’s exact location and the type of activities that it engages in. To help you obtain the right licenses and permits, we’ll go over how to determine which ones your Washington DC business needs and how to get them.
Before we get started explaining the various licenses and permits required of Washington DC businesses and how to obtain them, let’s start by going over what business licenses and permits are and why they exist. The main reason why Washington DC businesses are required to get licenses and permits is that they allow city and local governments to ensure that all businesses are compliant with required regulations. You’ll have to provide a lot of information about your business to obtain the right licenses/permits, and this information is used to verify your company’s compliance.
Business licenses typically grant companies the authority to operate within a specific area. Permits, meanwhile, tend to be more specialized and are used to regulate specific business activities. Permits can be issued at the city or local level, but they are often issued at the federal level. For example, a Washington DC business that sells alcohol are required to get a permit from the Alcohol and Tobacco Tax and Trade Bureau (TTB).
To clarify the distinction between licenses and permits, here’s what you should know:
For example, a restaurant in Washington DC will need a basic business license from the city to operate legally, and it will also need a health permit before serving food to customers.
There are two main factors that determine which licenses and permits a business in Washington DC will need: its location and its business activities. Both city and federal authorities may have their own specific requirements, so it’s important to check with each.
Here’s a breakdown of the types of licenses you may need in Washington DC:
City-Level Licenses: Most businesses in Washington DC must obtain a basic business license from the Department of Licensing and Consumer Protection (DLCP). This license allows you to operate legally within the city. You can visit the DCLP website to learn more and to apply for a basic business license online.
Local-Level Licenses: Depending on your business’s location within the city, you may need additional licenses or permits. Contact the Washington DC city office to find out more about specific requirements.
Many businesses in Washington DC will also be required to obtain specialized permits from the city. Examples of city permits your business might need include ones like:
If your business engages in activities that are regulated at the federal level, you may need to obtain federal permits as well. These include federal permits such as:
For more information on federal licensing requirements, check out the Small Business Administration (SBA) federal licenses and permits page.
When forming a business in Washington DC, most of the process looks largely the same for every company. When it comes to acquiring business licenses and permits, though, the process will vary a lot depending on which ones you need.
With that said, here are the general steps you’ll have to complete to obtain the necessary licenses and permits for your Washington DC business:
Start by determining which licenses and permits your business needs. Many businesses in DC will require licensing from local, city, and federal agencies:
With that said, here are the general steps you’ll have to complete to obtain the necessary licenses and permits for your Washington DC business:
Once you determine exactly which licenses and permits your business needs, the next step is to apply for them by submitting all required documents and paying the application fees. For a basic business license from the DCLP, here’s what this process looks like:
The application fee for a general business license in Washington DC is $99. Fees for federal licenses and permits, meanwhile, will vary depending on the agency that issues them.
Once you’ve submitted your application for a general business license, you’ll have the option to track its status through the DCLP website. The application status of federal licenses can also be tracked through the relevant agency’s website. Approval times will vary, but city-level licenses are generally processed within 10-15 business days. Federal licenses tend to take longer, and it may be several weeks before your application is processed.
Most business licenses and permits have to be renewed periodically, but renewal deadlines will vary from one license to another. A basic business license from the DCLP, for example, must be renewed either every two years or every four years, depending on the type of license you initially purchase. Be sure to track expiration dates and renew all your licenses on time since missing a renewal deadline can lead to fees and penalties.
If you’re planning to form a new business in Washington DC, obtaining the necessary business licenses and permits is a key step in the process. Be sure to carefully research which licenses and permits your business needs, then follow the steps in this guide to apply for them, track your application status, and keep them renewed.
Operating your Washington DC business without the necessary licenses and permits can lead to some serious consequences, including fines, penalties, and even business closure.
Yes, the same licensing requirements that apply to LLCs and corporations in Washington DC apply to sole proprietors as well. You’ll still be required to obtain a general business license, and you may need other licenses and permits as well depending on your location and business activities.
Yes, most business licenses from the DCLP must be renewed periodically. A general business license, for example, needs to be renewed either every two years or every four years (depending on the type of license you select).
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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