● Washington, DC · LLC Formation
How to Form an LLC in Washington, DC
Form your DC LLC without the tax surprises – CountSure files your Articles of Organization, sets up your Basic Business License, and maps your franchise-tax exposure up front. $99 to file – but DC taxes LLCs at the entity level.
Requirements, costs & steps for a DC LLC
Forming an LLC in the District of Columbia is affordable to start – just $99 – but DC works differently from a state, and one tax catches almost every new owner off guard: the Unincorporated Business Franchise Tax, which taxes your LLC at the entity level even though the IRS doesn’t. This guide covers the real costs, the filing order, the biennial report, and that franchise tax in plain terms. Want it handled for you? Our DC LLC formation service files everything, including your Basic Business License.
The short answer: To form a DC LLC you file Articles of Organization with the Department of Licensing and Consumer Protection (DLCP) for a $99 fee, and appoint a registered agent with a physical DC address. Online filings process in a few business days. Every DC LLC then files a $300 Biennial Report (due April 1, every two years), obtains a Basic Business License, and – if DC-source gross receipts top $12,000 – pays the 8.25% Unincorporated Business Franchise Tax (minimum $250).
You can verify the fees from official website of Washington, DC – Click here to verify
● Key takeaways
What you need to know?
- Filing fee: $99 for Articles of Organization, filed with DLCP (formerly DCRA).
- Biennial Report: $300 every two years, due April 1 - first one the year after formation; $100 late fee and dissolution risk.
- Unincorporated Business Franchise Tax: DC taxes LLCs at the entity level - 8.25% on DC net income over a $12,000 gross-receipts threshold, minimum $250 ($1,000 if receipts exceed $1M). Most states don’t do this.
- Basic Business License: Required for most DC businesses (~$99+), plus a Certificate of Occupancy or Home Occupation Permit.
- Not a state: DC is a federal district with its own filing system, taxes, and agencies - don’t assume state rules apply.
District of Columbia LLC at a glance
The essentials for forming and maintaining a DC LLC. Verify all figures before publishing.
⬤ Step by step
How to form a DC LLC, step by step
Choose and check your LLC name
Appoint a registered agent
File Articles of Organization with DLCP
Create an operating agreement
Get an EIN and register with OTR
Get your Certificate of Occupancy and Basic Business License
Calendar your April 1 Biennial Report
⬤ Naming & ownership
Naming & member requirements
A compliant name and a clear management structure keep your DLCP filing moving. Here’s what DC requires.
- Required ending: “LLC,” “L.L.C.,” or “Limited Liability Company.”
- Restricted words: Terms implying banking, insurance, or regulated activity generally need approval.
- Optional reservation: Hold an available name for 120 days for $50 before filing.
- Minimum members: One - DC allows single-member LLCs. No residency or age requirement.
- Management: Member-managed or manager-managed; DC uses “governor” on some filings for the person managing the LLC.
Ongoing DC LLC compliance & taxes
Biennial Report - $300, April 1
Every DC LLC files a Biennial Report with DLCP every two years, for $300. Your first report is due April 1 of the year after your LLC’s registration date, then April 1 every second year. A missed report brings a $100 late fee, and continued non-filing lets DLCP administratively dissolve your LLC under DC Code § 29-106.01.
Unincorporated Business Franchise Tax (UBT) - the big one
This is DC’s signature quirk. Even though the IRS treats your LLC as a pass-through, DC taxes it at the entity level. If your LLC has DC-source gross receipts over $12,000, you file Form D-30 and pay the Unincorporated Business Franchise Tax at 8.25% of DC net income, with a minimum of $250 (receipts $12,000 – $1M) or $1,000 (over $1M). A 30% owner-salary allowance and a $5,000 exemption reduce taxable income first. A narrow exemption exists if more than 80% of gross income comes from the members’ personal services and capital isn’t a material income producer – but it’s fact-specific, so confirm with a tax professional.
Basic Business License and Certificate of Occupancy
Most DC businesses must hold a Basic Business License (BBL), renewed every two or four years depending on category (~$99+). You’ll also need a Certificate of Occupancy for commercial space, or a Home Occupation Permit if you work from home.
Sales and income tax
District of Columbia LLC cost breakdown
What you’ll actually pay to form and run a DC LLC.
⬤ Expert view
Insight from our team
“The Unincorporated Business Franchise Tax is the thing I have to explain on almost every DC call. People assume an LLC is a pure pass-through like it is federally – then they find out DC taxes the entity itself at 8.25% once receipts pass twelve thousand dollars. For consultants and lobbyists, the 30% salary allowance and the personal-services exemption can matter a lot, but you have to structure and document it correctly. We map the UBT exposure before formation so nobody’s blindsided at tax time.”
Parth Shah
CountSure
⬤ Keep exploring
Related guides & services
- All state formation guides
Frequently asked questions
The filing fee is $99 for Articles of Organization. Ongoing, budget $300 every two years for the Biennial Report, plus your Basic Business License and any franchise tax.
Often yes. If your LLC’s DC-source gross receipts exceed $12,000, you file Form D-30 and pay the 8.25% Unincorporated Business Franchise Tax, minimum $250. This is unusual – most states don’t tax LLCs at the entity level.
April 1 every two years. Your first report is due April 1 of the year after you register, and it costs $300. A late filing adds a $100 fee.
Most likely yes. The Basic Business License (BBL) is required for most DC business activities, along with a Certificate of Occupancy or Home Occupation Permit.
Online filings through CorpOnline typically process within a few business days; expedited service ($50 for 3-day, $100 same-day) is available.
Usually not. DC’s entity-level franchise tax and licensing apply to businesses operating in the District. If you operate elsewhere, form in your home jurisdiction rather than DC.
Get Started
Start your DC LLC with CountSure
From Articles of Organization to your registered agent, EIN, Basic Business License, and that April 1 Biennial Report – plus a clear read on your franchise-tax exposure – CountSure handles your DC LLC end to end.
- Free 30-minute consultation with a CPA
- Fixed-fee, fully transparent pricing
- 100% remote - no travel or visa required
