Start Your LLC in Washington DC

Quick facts about forming a Washington DC LLC

Filing Fee	$99
Processing Time	3-7 business days online; longer by mail
Biennial Report Fee	$300, due every two years
Registered Agent Required	Yes, must have a physical address in D.C.
State Franchise Tax	None for LLCs
Business License	Businesses must obtain a Basic Business License (BBL) before operating
Managing Authority	Department of Licensing and Consumer Protection (DLCP)

How to form an LLC in District of Columbia in 6 steps

Although the District of Columbia is not an independent state, it is home to 670,000 people and thousands of businesses. Just as the 50 states do, the District of Columbia has unique laws and regulations when it comes to starting a limited liability company.

The government of the District of Columbia, often referred to as Washington, D.C., wants to make the process of forming and operating an LLC as quick and simple as possible for new business owners. The best way you can prepare to complete the forms is to gather contact information such as name, address, email and telephone number for each member of the LLC.

Here are the six steps you will need to complete when forming an LLC in the District of Columbia:

1. Name your LLC
2. Choose a registered agent
3. File articles of organization
4. Create an operating agreement
5. Apply for an EIN
6. Obtain a Basic Business License (BBL)

This guide will walk you through each of the six steps in detail.

Step 1: Name your DC LLC

Just as each of the 50 states do, the District of Columbia imposes specific regulations when it comes to naming a new business. These include:

• The name of your new business must include the words “limited liability company” or “LLC.”
• Your business name cannot include any words that would cause the average person to confuse it with a government agency.
• If you plan to use a restricted word such as “bank,” “university” or “attorney,” you will need to complete additional LLC paperwork and include a doctor, lawyer or other licensed professional as part of your LLC.

Before finalizing your company name, perform a DC business entity search to make sure it’s unique and not already in use. This simple step helps you avoid filing delays or rejection when submitting your articles of organization.

Step 2: Choose a registered agent

A registered agent is a person who accepts responsibility for sending and accepting legal documents on behalf of your LLC. The District of Columbia requires all new LLCs to list the registered agent’s name, street address during regular business hours, and other contact information. The registered agent must meet the following requirements:

• The listed address cannot be a post office box
• The person must always be available during business hours at the address listed
• The person must be at least 18 years old

All new businesses forming under the LLC structure need to list the name of a registered agent in the District of Columbia. Besides regular communications from the Washington, D.C., government, this person receives notifications of lawsuits and other legal information delivered by a process server. You can be the registered agent or name another member of your LLC. However, you can also choose any person you trust, as long as the person is over 18 and has a street address within the District of Columbia.

Some new business owners choose to work with a Washington DC registered agent service rather than choose a friend or LLC member. You have the assurance of knowing you are working with a professional who will make sure your business remains compliant if you choose this option. Working with a service also protects your privacy, since the government publishes the names and addresses of registered agents in the District of Columbia Public Entity Search. The entry for your business will show the name of the company you hired instead of your personal name if you go this route.

Step 3: File articles of organization

You are ready to file articles of organization once you have settled on a name for your business and made sure that it is available for use. Once you have completed the forms, you will need to file them with the Department of Consumer and Regulatory Affairs. You can either complete and submit the forms online, mail a hard copy, or submit your articles of organization in person.

State fees

The current fee to form an LLC and file the required articles of organization in the District of Columbia is $99. This amount represents the basic LLC in DC cost to officially establish your business. 

Once your LLC is formed, you’ll also need to remember ongoing compliance requirements, most importantly, filing your biennial report DC every two years to keep your company in good standing with the Department of Consumer and Regulatory Affairs

Requirements

You will need the following information available when you complete your articles of organization forms:

• Name and address of your business entity.
• Name and address of your registered agent, if you choose to use one.
• The date your articles of organization should be effective.
• Name and contact information for the person completing the forms.

How to file

If you choose to file your paperwork online, navigate to this link, follow the online instructions, and pay your fee after you have completed all the forms. When mailing the form, you can download it and then send it to the following address:

Department of Consumer and Regulatory Affairs
Corporations Division
PO Box 92300
Washington, DC 20090

Should you decide to submit the forms in person, you can do so at the Department of Consumer and Regulatory Affairs office located at 1100 4th St. SW in Washington, D.C. You will need to pay an extra $100 if you choose to hand-deliver your completed paperwork.

protects your privacy, since the government publishes the names and addresses of registered agents in the District of Columbia Public Entity Search. The entry for your business will show the name of the company you hired instead of your personal name if you go this route.

Step 4: Create an operating agreement

An operating agrement outlines the rules and expectations for operating your business while also giving the new company greater credibility from a legal standpoint. Although many new LLCs prepare an operating agreement at the time of filing the articles of organization, you can always create one later. The information contained in the operating agreement remains private, and you do not have to file it with the District of Columbia government.

Is an operating agreement a must?

No. A DC LLC operating agreement is not legally required, but preparing one provides additional protection for you and your business partners. Here is some information to include in this document if you and your business partners choose to create it:

• LLC organization: This includes the date of formation of the new company, the names of each member, and percentage of ownership. LLCs with multiple members can choose to assign each person an equal share of ownership or divide ownership based on the individual contributions of each member. The operating agreement should also list how much each member contributed toward launching the business.
• Business management and voting procedures: Some LLCs choose to have only the members managing them, while others opt to appoint a manager. The document should spell out who the manager is along with that person’s duties. Be sure to include how members will vote on matters and whether some members get more votes than others based on their capital contributions.
• Distribution of profit and losses: Most LLCs divide profit and losses equally among the members, but yours may choose a different structure. Putting it in writing from the start avoids misunderstandings and potential legal action later.
• Membership structure changes: The operating agreement should outline how to handle situations such as an LLC member leaving the organization or passing away.
• Dissolving the business: Should all members decide they no longer want to operate the LLC, having a formal process will make closing or selling the business less stressful.

Step 5: Apply for an EIN

The requirement to apply for an employer identification number is the same regardless of the location of your business within the United States. The Internal Revenue Service offers EIN processing as a free service. Tailor Brands also offers EIN applications and processing as part of our LLC formation services.

For tax reporting purposes, the IRS requires detailed information about the person considered the true principal operator of the business. This information includes the person’s full name and Social Security number, individual tax identification number, or previous/other EINs. The IRS considers the entity or person who controls, directs and manages funds and assets for the organization to be the responsible party.

The fastest way to obtain an EIN is to apply online. The website automatically generates a number once you have completed all the required information. The IRS currently issues only one EIN to one responsible party each business day. The rule will only apply to you if you want to use different EINs for separate divisions of your company.

Apply for Employer Identification Number (EIN) in-person at:

• 77 K Street, NE
• Washington, DC 20002

or via telephone at (202) 803-9000.

Another option is to complete Form SS-4, Application for Employer Identification Number, and fax it to 855-641-6935 or mail it to the following address:

Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Step 6: Obtain a Basic Business License (BBL)

Every business operating in Washington, DC, including LLCs, must obtain a Basic Business License (BBL) before beginning operations. The process is handled by the Department of Licensing and Consumer Protection (DLCP) and can be completed entirely online through the D.C. Business Center Licensing Portal.

To obtain a BBL you will need to complete the following:

• Form your LLC (see Step 2 above)
• Obtain an EIN by registering with the IRS (see Step 5 above)
• Register your EIN with the DC Office of Tax (OTR)
• Obtain a Clean Hands Certificate
• Register with the Office of the Zoning Administrator

Start by identifying the correct business activity category for your LLC, since DC issues activity-based endorsements rather than one universal license. Once you select the appropriate category, you’ll submit your application, verify your business address, and complete all required compliance steps, which may include zoning approval or a Clean Hands Certificate confirming you have no outstanding tax liabilities with the District.

The cost of a BBL varies depending on the business activity, but most licenses fall between $99 and $500 for a two-year license period. After approval, your BBL must be renewed at the end of its license cycle to keep your LLC in good standing. The entire process is designed to ensure that every business operating in D.C. meets the city’s regulatory and compliance standards before offering products or services to the public.

How to register your EIN with the DC Office of Tax

Register your EIN with the DC Office of Tax and Revenue online.

Or in person at:

• 1101 4th Street, SW,
• 2nd Floor
• Washington, DC 20024,

or call (202) 727-4TAX.

What is a Clean Hands Certificate

The Clean Hands check will done during the online BBL application process.

A Clean Hands Certificate is a document issued by the D.C. Office of Tax and Revenue confirming that your business has no outstanding tax debts or unpaid obligations of $100 or more to the District. D.C. requires this certificate for many business filings, including the Basic Business License (BBL), to ensure that applicants are in full compliance with local tax laws. You can request the certificate online through the MyTax.DC.gov portal, and approval is typically immediate if your records show no outstanding liabilities. If you do owe taxes or fees, you must resolve those balances before the certificate can be issued and your BBL application can move forward.

Register with the Office of the Zoning Administrator

Before your business can receive a Basic Business License in Washington, D.C., you must confirm that your business location complies with local zoning rules. If you plan to run your LLC from your home, you may qualify for an Expedited Home Occupation Permit (eHOP) during the online BBL application process, or you can apply separately for a standard Home Occupation Permit. For businesses operating from a commercial office or storefront, you’ll need to obtain a Certificate of Occupancy, which verifies that the space is legally approved for your type of business activity. Ensuring zoning approval early prevents delays and ensures your business is operating in compliance with District regulations.

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