Forming an LLC in Washington, DC, follows a clear process when you understand the District's specific requirements. DC mandates three core elements under the DC Limited Liability Company Act:
Additional items can enhance your business setup, but these three form the legal foundation.
The District charges $99 for Articles of Organization filing, plus $300 for biennial reports, positioning it competitively among nearby jurisdictions. Document rejections require resubmission with another $99 payment, making accuracy essential for cost control.
Your business name must incorporate "Limited Liability Company," "L.L.C.," or "LLC" while remaining distinct from existing DC entities. Verify availability through the DC CorpOnline search tool. You’ll need to set up an Access DC account to get started.
Restricted terms like "bank" or "insurance" require special authorization before use. If your operating name differs from your registered LLC name, register a trade name (DBA) with DLCP for $55.
Secure your preferred name for future use by reserving it for 120 days with a $50 payment if you can't file immediately.
DC requires a registered agent with an actual street address within the District—P.O. boxes don't qualify. Any DC resident over 18 or an authorized business entity can serve this role. Written consent from your chosen agent is mandatory.
Failing to maintain proper registered agent coverage can trigger state dissolution proceedings, eliminating your business protections and creating personal liability exposure. Select a dependable agent since consistent availability affects your ongoing compliance status.
Your Articles of Organization serve as the official business formation document. Required information includes your LLC name, principal address, business purpose description, and complete registered agent details.
Submit your DC LLC Articles of Organization through CorpOnline, mail, or in-person delivery with the $99 required fee. Faster processing costs $50 for a 3-day turnaround or $100 for same-day completion.
While DC law doesn't mandate an Operating Agreement, creating one provides significant advantages. This internal document establishes ownership structure, management procedures, and operational guidelines. Multi-member LLCs especially benefit from clear governance rules.
A comprehensive Operating Agreement reinforces liability separation and provides clarity for financial institutions, potential investors, and business partners. Draft it yourself at no cost or engage professional assistance for complex situations.
DC doesn't impose universal business licensing, but industry-specific requirements may apply. Most businesses need a Basic Business License (BBL) from DLCP, with costs varying by business type.
Secure a free Employer Identification Number (EIN) from the IRS for tax and banking purposes. Businesses selling taxable items must register for sales tax collection with DC's Office of Tax and Revenue. Local permit requirements may also apply depending on your location and activities.
Formation represents just the initial step in your business journey. Ongoing compliance demands attention to several key areas:
Biennial reports must be submitted every two years by April 1, beginning the calendar year following formation. DLCP's online portal offers the fastest filing method with immediate confirmation, though deadline compliance remains non-negotiable.
Do I need an Operating Agreement?
Legal requirements don't include Operating Agreements, but practical benefits make them valuable. Financial institutions, investors, and solo operators use them for ownership clarification, profit distribution rules, and dispute resolution. Self-drafting costs nothing.
How do DC fees compare regionally?
DC maintains competitive pricing versus neighboring jurisdictions. Virginia ($100/$50), Maryland ($100/$300), and Delaware ($90/$300) offer similar formation costs with different ongoing fee structures.
Can I form elsewhere while operating in DC?
Yes, though conducting business in DC as a foreign LLC requires registration and fee payment to both your formation state and DC.
Discern's platform streamlines Washington, DC LLC compliance through automated processing and real-time status tracking. Our system completes most filings within minutes, removing uncertainty and administrative burden from compliance management.
Book a demo with Discern to get started.
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