Overview
Getting an LLC in the District of Columbia involves a straightforward process. Below, we’ll guide you through the essential steps and provide factual answers to common questions.
How To Get An LLC In Washington DC: Step-By-Step
- Choose a Name for Your LLC:
- Choose a unique and available name for your LLC.
- Perform a Washington DC LLC name search through the District of Columbia CorpOnline website.
- Reserve your chosen name if needed.
- Appoint a Registered Agent:
- Appoint a registered agent with a physical address in DC.
- File Articles of Organization:
- Complete the DC LLC Articles of Organization form.
- File by mail or online through the Washington DC Department of Licensing and Consumer Protection (DLCP) website.
- Operating Agreement:
- Draft an operating agreement outlining the structure and operation of your LLC. Although not required by the district, it is highly recommended.
- Employer Identification Number (EIN):
- Obtain an EIN from the IRS for tax purposes.
- File the Beneficial Ownership Information Report:
- Beginning in 2024, Washington DC LLCs must submit a Beneficial Ownership Information (BOI) Report.
- Obtain the DC Business License for your LLC:
- To operate your DC LLC, you’ll likely need a business license from DLCP.
1. Choose A Name For Your LLC
Check if the name you desire for your DC LLC is available in the district. This is important because no two businesses in Washington DC can share the same name.
To do this, use the CorpOnline Business Entity Search tool to compare your business name with existing ones in DC.
Make sure your LLC name is unique by following DC’s naming rules to increase the chances of your LLC name being approved.
If you need, you can reserve the name for your LLC for up to 120 days. The cost is $50.
2. Appoint A Registered Agent
In Washington DC, you need to choose a registered agent for your LLC. This is the person or company allowed to get legal papers and important notices on behalf of your LLC.
Your registered agent can be a person, like yourself or one of your employees, or a company that offers this service.
The registered agent has to meet some requirements:
- If it is a company, it must offer registered agent services.
- The agent must have an address in Washington DC.
- The agent must be there in person and ready to get documents during regular business hours.
3. File Washington DC LLC Articles Of Organization
To officially establish your District of Columbia LLC, you need to file the DC LLC Articles of Organization.
This document provides essential details about your LLC and serves as the official registration.
To prepare the certificate, gather the following information: your LLC name, the name and address of the registered agent, the purpose of your LLC business, and provide the effective date if different from the filing date.
The form is a straightforward online submission or can be sent by mail.
The Washington DC LLC Articles of Organization filing fee is $99. For expedited processing, add $50.
Once filed, the DC Department of Licensing and Consumer Protection (DLCP) will review the document, and upon approval, your LLC attains legal business entity status.
You can undertake this process independently using our step-by-step guide or opt for the convenience of hiring a company for assistance.
>> Form your LLC with ZenBusiness for $0 (plus state fee) <<4. Create An Operating Agreement
An operating agreement is a document that shows how your LLC will do business.
While DC doesn’t make it a must, having one is crucial. It helps in different ways, like resolving money disputes or potential legal issues. Without it, the courts decide based on “state” laws, not necessarily what’s best for the LLC.
The agreement can include things like the LLC’s name, address, how long it will last, the registered agent’s details, info from the articles of organization, the business’s purpose, member contributions, how profits and losses are shared, rules for new and leaving members, how the LLC is managed, and clauses about protection and responsibility.
5. Obtain Employer Identification Number (EIN)
The Internal Revenue Service (IRS) gives your LLC a nine-digit number called an Employer Identification Number (EIN) to identify it for taxes. You can get your EIN by mail or online through the IRS.
This number helps you:
- File and handle taxes at both the state and federal levels.
- Open a bank account for your business.
- Apply for permits and licenses.
- Hire employees.
Obtaining an EIN is FREE.
6. File The Beneficial Ownership Information Report
Starting in 2024, many Washington DC LLCs must now file an extra document at the federal level, known as the Beneficial Ownership Information (BOI) Report, to the Financial Crimes Enforcement Network (FinCEN).
This report mandates disclosing information about your company applicant and all beneficial owners to FinCEN. You can submit it online using the Beneficial Ownership Information E-filing System or opt for a professional service to handle it for you.
7. Obtain The DC Business License For Your LLC
To operate your DC LLC, you’ll likely need a business license from DLCP, which can be obtained online, in person, or by mail.
To get the license, first, you’ll need either a Certificate of Occupancy or a Home Occupation Permit, costing $75 and $122, respectively.
Once obtained, you can apply for a Business License, with costs varying based on business activities, typically ranging from $200 to $500 every two years, or $325 for a Basic Business License. Renewals are required every two years.
Read more about getting a Business License in DC here.
Review: What Is Needed To Form An LLC In Washington DC?
To form an LLC in DC, you need:
- A unique LLC name.
- Registered Agent information.
- Articles of Organization.
- Operating Agreement (recommended).
- Employer Identification Number (EIN).
- Business License.
What Forms Do You Need To Get An LLC In DC?
- Application to Reserve LLC Name
- Articles of Organization (online)
- Articles of Organization (PDF)
- EIN Application Form
- BOI Form
- DC Business License Application
How Much Does It Cost To Start An LLC In Washington DC?
The cost to start an LLC in DC involves several steps, each with its own associated fees:
- Articles of Organization Filing Fee: $99
- Expedited processing: $50
- Name Reservation Fee (if needed): $50
- Biennial Report Fee: $300
- Certificate of Occupancy or Home Occupation permit: $75 – $122
- Business License: $200 – $500
What Is The Washington DC Biennial Report?
DC’s LLCs need to submit a report to the district every other year, known as the Biennial Report. This report ensures the government has current contact details for your business and is informed about any changes in ownership.
It is due on April 1st every two years.
The annual report fee in Washington DC is $300.
How Long Does It Take For An LLC To Get Approved In Washington DC?
If you send your LLC application by mail, it will be approved in 10-20 business days, plus the time it takes for the mail (3-5 weeks in total).
However, if you file online, your LLC can be approved in 5-7 business days.
What Are The Benefits Of Getting An LLC In Washington DC?
- Limited liability protection for members
- Pass-through taxation
- Flexible management structure
- Credibility for business transactions
Is The District Of Columbia A Good Place To Get An LLC?
Whether Washington DC is right for your LLC depends on where you live and do business. If you live or operate in DC, it makes sense to start your LLC there.
Getting An LLC In Washington DC: Next Steps
Once your LLC is registered, you can:
- Get the permits and licenses you need for your business, like health or zoning permits.
- Register your business with the state’s tax agency.
- Open a business bank account.
- Apply for a business credit card.
- Buy insurance for your business.
- Safeguard your name and logo with a trademark.
To maintain your LLC in DC, you must:
- Update any changes to the registered agent or business address promptly.
- File an Annual Report.
- Pay Taxes (owners file their individual tax returns)
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Conclusion
Forming an LLC in Washington DC involves a few key steps, from name reservation to obtaining an EIN.
Carefully following the process ensures a smooth establishment of your LLC.
For more detailed information and to access the necessary forms, visit the DLCP website.
