LLC formation costs in Washington, DC

Setting up an LLC in Washington, DC starts with a $99 online filing fee ($199 in person), but that's just the tip of the iceberg. The real financial surprise comes from everything else DC requires before your business can legally operate: 

• A registered agent 
• A General Business License, which you need to renew every two years 
• Industry-specific licenses 

Working from home? Add another $72.60 for a Home Occupation Permit. Every two years, DC also requires a $300 biennial report to maintain the existence of your LLC. Your final price tag depends heavily on your business model and industry, regardless of whether you file on your own, use a formation service, or hire an attorney.

Required Washington, DC LLC formation costs

DC's lists a $99 filing fee, but the actual costs emerge once zoning and licensing requirements are factored in. Here's every mandatory expense before you can legally operate:

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Meet these five requirements and you're legally operational, creating the foundation for any optional services that might streamline your business setup.

Optional LLC formation costs in Washington, DC

Beyond DC's mandatory fees, there’s a layer of optional expenses that can make your first year significantly easier, or just drain cash if you don't actually need them.

• For a legal safety net, an attorney will draft your Articles of Organization, operating agreement, and member resolutions for approximately $500–$1,500, depending on the complexity and size of the firm. 
• An accountant's initial tax strategy session typically costs $100–$500 and can result in substantial savings on future franchise or self-employment taxes. 
• Online formation companies offer middle-ground solutions: plans range from $0 to approximately $299, plus the $99 state filing fee.
• Name reservation costs $50 if you're not ready to file immediately, and DC holds your chosen name for 120 days. 
• Expedited processing increases the standard $99 online filing to $199 for same-day treatment at the clerk's office. 
• Trade name registration applies when you operate under a name other than your LLC's legal name, costing $10–$200, depending on the business activity. 
• Banks and major clients often request a Certificate of Good Standing, which costs another $50 to prove your entity meets all filing requirements.

DIY filing keeps money in your pocket but means navigating DLCP instructions, tracking deadlines, and accepting legal documents at your home address. Paying a service or attorney shifts that workload elsewhere. The question becomes how much you value your time, privacy, and peace of mind.

Ongoing annual costs for Washington DC LLCs

DC's billing doesn't end after you file your Articles of Organization. The District's recurring fees and the penalties that follow if they are missed often catch new LLC owners off guard, who have focused only on the $99 formation fee. Budget for these line items or risk administrative dissolution:

• The biennial report ($300 every other year, due April 1)
• Basic Business License renewal ($70+ every two to four years, depending on your business category)
• Your DC registered agent's fees ($100-$300 annually if using professional service)
• Franchise tax for LLCs with DC-source gross income exceeding $12,000
• Sales tax obligations (6% for taxable goods and services)
• Professional help for taxes, bookkeeping, or automated compliance services

Understanding these ongoing costs prevents surprise invoices and last-minute compliance panic.

FAQs about the costs of forming an LLC in DC

Are there any hidden fees associated with forming an LLC in DC?

The listed price never covers everything. You need a business license, which incurs costs tied to your NAICS code, a biennial report (with its own associated fee), and possibly a Home Occupation Permit for zoning compliance.

Can I get a refund if my filing is rejected?

No. DC considers the filing fee payment for processing, not approval. Once the Department of Licensing and Consumer Protection charges your card, the money is gone, regardless of whether it is rejected or not.

How do DC costs compare to other states?

DC ranks among the more expensive options, particularly with that $300 biennial report. Maryland charges $100 upfront but requires $300 annually. Low-cost states like Arkansas and New Mexico keep both fees at a minimum.

Can I form my LLC in another state to save money?

You can, but those savings are likely to disappear quickly. As soon as you conduct business in DC, sign a lease, hire employees, or meet clients, you must foreign-qualify that out-of-state LLC here. That means paying a qualification fee, appointing a DC-registered agent, and filing the same $300 biennial report. 

Simplify Washington DC LLC formation costs with Discern

Discern offers transparent pricing that recognizes every DC filing requirement, including articles filing, registered agent coverage across all 51 jurisdictions, and automated biennial report management. This way, you never encounter surprise fees or missed deadlines.

Most filings are completed in minutes, with real-time state processing estimates showing exactly when your paperwork will be cleared. Ready to simplify your DC compliance obligations? Try Discern today.