Key Takeaways

  • Forming an LLC in the District of Columbia provides liability protection, flexible management, and favorable tax treatment for entrepreneurs.
  • The process includes naming your LLC, appointing a registered agent, filing Articles of Organization, creating an operating agreement, and obtaining necessary licenses.
  • DC requires all businesses to register with the Department of Licensing and Consumer Protection (DLCP) and renew their Basic Business License biennially.
  • Foreign LLCs doing business in DC must register as “foreign entities” with the DLCP.
  • The typical filing fee is $220, and annual reporting is required to maintain good standing.
  • A professional attorney or service can simplify compliance, filings, and renewals.

Register LLC in DC is something that every entrepreneur who wishes to form a limited liability company (LLC) in the District of Columbia must do. While it is a relatively easy process, you need to make sure that every step is properly done to ensure the smooth formation of your LLC and minimize potential problems.

You must:

  1. Name your LLC.
  2. Appoint a registered agent.
  3. File the Articles of Organization.
  4. Create an operating agreement.
  5. Obtain an EIN.
  6. Get a state tax identification number.
  7. Get a business license.
  8. Hold an organizational meeting.

Step-by-Step Guide to Forming an LLC in DC

Step 1: Name Your LLC

Naming your LLC is one of the most important steps in forming an LLC. It is essential that you do some research and thinking to determine if the name you chose is suitable for your business and easily searchable by your potential customers. The name of your LLC must end with “Limited Liability Company,” “LLC,” “L.L.C.,” or another variant or abbreviation. If you wish to include restricted words such as “Attorney,” “Bank,” or “University” in the name, you are required to file more paperwork and may be required to be a licensed person, such as a lawyer or doctor.

In addition, you have to make sure the name you select is not already taken. This can be done by conducting a name search on the official website of the District of Columbia.

Step 2: Appoint a Registered Agent

All LLCs in DC must appoint a registered agent. A registered agent refers to an individual or business entity that consents to receive and send legal documents on your LLC's behalf. These documents include lawsuit notifications and state filings. You are required to elect a registered agent who is a resident of DC, a company authorized to conduct business in the state, or a commercial registered agent that is registered with the state. You are also allowed to select an individual in your company to be your registered agent, including yourself.

Step 3: File the Articles of Organization

In order to register your LLC, you are required to submit the Articles of Organization to the District of Columbia. You can do this online at the website of the Department of Consumer and Regulatory Affairs (DCRA). You will be charged a non-refundable fee of $220 when you file the Articles of Organization. If you file as a walk-in customer, you are required to pay an additional $100. If you choose to submit the Articles of Organization by mail, the DCRA will take three to four weeks to process your application.

When you file the Articles of Organization, you must contain the following information:

  • Name of your LLC
  • Articles of Organization's effective date
  • Principal address of the LLC
  • Names of members of the LLC (must be at least one)
  • Dates when LLC members became members
  • Name and physical address of the registered agent
  • Names, addresses, and signatures of organizers (signatures do not have to be original on filings)

Step 4: Create an Operating Agreement

While creating an operating agreement is not one of the requirements for establishing an LLC, it is highly recommended that you do so. An operating agreement is an important document that outlines an LLC's ownership and operating procedures.

Step 5: Obtain an Employer Identification Number (EIN)

Also referred to as Federal Tax Identification Number, an EIN is a number used for identifying a business entity. It is essentially the social security number of your LLC. You need to have an EIN in order to file federal and state taxes and open a business checking account in some banks. An EIN can be obtained from the IRS online or by mail after the formation of your LLC.

Step 6: Register with the Office of Tax and Revenue (OTR)

If your LLC has employees or plans to sell goods and collect taxes, you are required to register with the DC OTR.

Step 7: Get a State Tax Identification Number

You can submit your application for a DC tax identification number online or by mail to the OTR.

Step 8: Get a Business License

The DCRA requires a business to be licensed before it can operate legally. The required license varies depending on the nature of your business.

Step 9: Hold an Organizational Meeting

The organizational meeting is the first meeting of your LLC's members. Your LLC must file Articles of Organization and Operating Agreement to conduct this meeting. Make sure you record minutes of the meeting and keep them in the company's record book.

Foreign LLC Registration in DC

If your LLC was formed outside the District of Columbia but plans to conduct business within DC, you must register as a Foreign LLC. To do this, file the Foreign Registration Statement (Form FN-1) with the DLCP and pay the $220 filing fee. You’ll also need to provide:

  • A Certificate of Good Standing from your home state (issued within 90 days).
  • The name and address of your DC registered agent.
  • A copy of your Articles of Organization from your home jurisdiction.

Once approved, your foreign LLC will have the same rights and obligations as domestic LLCs operating in DC.

Additional Requirements for Forming a DC LLC

Beyond the core steps, understanding DC’s regulatory requirements ensures your LLC remains in good standing. Every LLC in DC must comply with local business registration, taxation, and reporting rules.

1. Register Your Trade Name (If Applicable)If your LLC plans to operate under a name different from its legal name, you must register a trade name—also known as a “Doing Business As” (DBA)—with the DLCP’s Corporations Division. The registration is valid for two years and must be renewed to maintain exclusive use of the name.

2. Obtain a Basic Business License (BBL)All DC businesses require a Basic Business License (BBL) before operating. You can apply through the Department of Licensing and Consumer Protection (DLCP), and the specific license category depends on your business type (e.g., retail, food service, consulting). The BBL must be renewed every two years.

3. File a Biennial Report Every DC LLC must file a Biennial Report with the DLCP to keep company details current. The report is due by April 1 of every second year after formation and costs $300. Missing this filing can result in penalties or administrative dissolution.

4. Understand Tax Obligations Even though DC LLCs are typically pass-through entities, you must register for a Franchise Tax ID and pay applicable taxes such as the Unincorporated Business Franchise Tax (UBFT) if your LLC earns $12,000 or more annually from DC sources. You must also file Form FR-500 with the Office of Tax and Revenue (OTR) for tax registration.

5. Obtain Permits or Zoning Approvals If you plan to operate from a commercial location, you may need zoning approval or occupancy permits from the Department of Buildings (DOB). Home-based businesses may also require a Home Occupation Permit (HOP).

LLC Costs and Processing Time in DC

When determining how to form an LLC in District of Columbia, you should budget for both required and optional fees:

  • Articles of Organization: $220 filing fee (add $100 for expedited service).
  • Biennial Report: $300 every two years.
  • Basic Business License: Varies by industry, typically between $70–$500.
  • Trade Name (DBA): $55.
  • Certificate of Good Standing: $50 (optional, often needed for loans or contracts).

Processing Time: Online filings are typically processed within 3–5 business days, while mail-in filings can take 2–4 weeks. Expedited service (same-day or three-day) is available for an additional fee.

Benefits of Forming an LLC in DC

Forming an LLC in DC offers several key advantages for small business owners and entrepreneurs:

  • Limited Liability Protection: Owners’ personal assets are protected from business debts.
  • Flexible Management Structure: Members can manage the business themselves or appoint managers.
  • Pass-Through Taxation: Income is reported on members’ personal tax returns, avoiding double taxation.
  • Local Credibility: Registering in DC establishes a legitimate local presence, which can enhance trust with clients and investors.

Common Mistakes to Avoid When Forming a DC LLC

To ensure compliance and avoid costly delays when forming your LLC in the District of Columbia, watch out for these common errors:

  • Failing to appoint a valid registered agent located in DC.
  • Using an unavailable or noncompliant business name (check name availability via the DLCP portal).
  • Neglecting to renew the Basic Business License or biennial report, which can lead to suspension.
  • Skipping an operating agreement, which may cause disputes among members later.
  • Failing to register for taxes or obtain required permits before beginning operations.

Why You May Want Legal Help

While it’s possible to register your LLC independently, professional guidance can save time and reduce compliance risks. A DC business attorney can help with:

  • Drafting your Operating Agreement and ensuring it meets DC law.
  • Reviewing contracts or leases related to your new business.
  • Advising on the Unincorporated Business Franchise Tax and other local requirements.

You can find an experienced attorney through UpCounsel’s online marketplace, where only the top 5% of lawyers are accepted. They can guide you through every step of forming and maintaining your DC LLC efficiently and correctly.

Frequently Asked Questions

  1. How long does it take to form an LLC in the District of Columbia?
    Online filings are usually approved within 3–5 business days. Expedited service is available for an additional $100 fee for same-day or three-day processing.
  2. How much does it cost to start an LLC in DC?
    The Articles of Organization filing fee is $220, with a $100 expedited option. Other costs may include a $55 trade name registration and $300 biennial report.
  3. Do I need a business license to operate in DC?
    Yes. Every LLC must have a Basic Business License (BBL) issued by the DLCP before starting operations.
  4. What taxes does a DC LLC have to pay?
    DC LLCs may owe the Unincorporated Business Franchise Tax (UBFT), depending on income. You must also register for employer withholding or sales tax if applicable.
  5. Can I form an LLC in DC if I don’t live there?
    Yes. Nonresidents can form an LLC in DC as long as they appoint a registered agent with a physical address in the District.

If you need help registering your LLC in DC, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.