How to Form an LLC in District of Columbia (2026)

1. 1Choose a name for your LLC and verify availability by searching the DC DLCP entity search. Your name must include "Limited Liability Company," "LLC," or "L.L.C."
2. 2Appoint a registered agent with a physical street address in DC.
3. 3File Articles of Organization with the DC Department of Licensing and Consumer Protection (DLCP). The filing fee is $99. Online filing is available.
4. 4Obtain an EIN (Employer Identification Number) from the IRS at no cost.
5. 5Create an operating agreement to define ownership, management, and profit distribution. Not legally required in DC but strongly recommended.
6. 6Open a business bank account with your Articles of Organization, EIN, and operating agreement.
7. 7Obtain a DC Basic Business License (BBL) from the DLCP. Most businesses operating in DC need one.
8. 8File your first biennial report. The fee is $300, due every 2 years on April 1.

• ✓Obtain an EIN from the IRS (free, apply online at irs.gov)
• ✓Open a dedicated business bank account
• ✓Apply for a DC Basic Business License (BBL)
• ✓Register for DC taxes with the Office of Tax and Revenue
• ✓Get business insurance (general liability at minimum)
• ✓Set up an accounting system to track income and expenses
• ✓File your first biennial report ($300) by April 1

Your DC LLC name must contain "Limited Liability Company," "LLC," or "L.L.C." The name must be distinguishable from other registered business entities in DC. Restricted words like "Bank," "Insurance," or "Trust" require additional licensing.

DC LLCs are subject to the DC Unincorporated Business Franchise Tax if they earn more than $12,000 in gross receipts from DC sources. The tax rate is 8.25% on net income. Members also pay DC individual income tax (rates from 4% to 10.75%) on pass-through income. DC has relatively high tax rates compared to most states.

LLC vs. other structures in District of Columbia

DC is expensive for LLCs due to the $300 biennial report and the 8.25% unincorporated business franchise tax on income over $12,000. For businesses earning under $12,000 in DC, the franchise tax does not apply. If you live in DC and your business earns over $12,000, compare the total tax burden with forming in Virginia or Maryland.

• •File a biennial report every 2 years by April 1 — $300 fee
• •Pay the Unincorporated Business Franchise Tax if gross receipts exceed $12,000
• •Maintain a registered agent with a physical address in DC at all times
• •Renew your Basic Business License (BBL) as required
• •File DC individual income tax returns for all members receiving pass-through income

District of Columbia offers a reasonable cost structure for LLCs. The $99 filing fee is competitive, and ongoing costs are manageable. If you operate in District of Columbia, forming your LLC here makes the most sense.

In general, you should form your LLC in the state where you physically live and conduct business. Forming in a "tax-friendly" state like Wyoming, Delaware, or Nevada sounds appealing, but if you operate in District of Columbia, you will still need to register as a foreign LLC there — paying fees in both states.

An LLC is almost always a better choice than operating as a sole proprietorship because of the personal liability protection it provides. However, if your LLC is highly profitable, you should talk to a CPA about electing S-Corp tax treatment to potentially reduce your self-employment tax burden.

What District of Columbia LLC Owners Need to Know

• •DC renamed DCRA to DLCP (Department of Licensing and Consumer Protection) in 2022
• •Biennial report costs $300 and is due every 2 years on April 1
• •DC LLCs are subject to DC's unincorporated business franchise tax if they earn over $12,000 in DC

Official District of Columbia Resources

• DC DLCP — Corporate Registration
• DC Online Corporate Filing
• DC Filing Fees