How to Start an LLC in Washington DC

A Washington DC LLC is one of the most simple, cost-effective, and quick business structures to form. Even so, navigating the formation process can seem daunting without clear guidance and an actionable plan.

In this How to Start an LLC in Washington DC guide, we’ll break down everything you need to know to form your LLC, from the steps you’ll need to take to get started to maintaining your structure.

Washington DC LLC

In order to form an LLC in Washington DC, you’ll need to complete the following steps:

1. Name Your Washington DC LLC
2. Pick a Washington DC Registered Agent
3. Submit Your Articles of Organization
4. Create a Washington DC LLC Operating Agreement
5. Get an EIN
6. File Your BOI Report

In the sections below, we’ve broken down each of these steps in more detail.

Step 1: Name Your Washington DC LLC

The first thing you’ll need to do before getting started is picking the right name for your LLC. This is important because your business’s name will need to represent your brand accurately, as well as be as memorable as possible.

In Washington DC, all LLC names need to abide by the following statutory guidelines in order to be accepted by the Secretary of State:

• Must either contain “limited liability company”, “limited company”, or an abbreviation of these terms such as “L.L.C.”, “LLC”, “L.C.”, or “LC”. Note that “limited” and “company” can be abbreviated as “Ltd.” and “Co.”
• If the filing entity is a professional LLC, its name must include the term “professional limited liability company”, or one of the following abbreviations: “P.L.L.C.” or “PLLC”
• Must be sufficiently distinguishable from the names of all the following under the District’s records:
• Names of other domestic business entities and limited liability partnerships
• Names of foreign businesses authorized to operate in the District
• Names that have been reserved according to section 29-103.03
• Names that have been registered according to section 29-103.04
• Assumed names that have been registered under subchapter I-C of Chapter 28, Title 47
• When determining if a name is sufficiently distinguishable from any of the above, words or abbreviations that indicate a business’s entity type (e.g., “corp”, “LLC”, or “professional association”) are not considered
• Names containing terms related to the finance industry (e.g., “credit union”, “insurance”, “banking”) are not permitted without the Mayor’s express approval
• Names cannot be identical or similar to those adopted by any branch of the federal or state government

You can find the full list of these naming requirements for LLCs in Washington DC under D.C. Code § 29-103 within the state’s statutes.

Keep in mind that even though picking an LLC name in itself has no cost, there are certain fees that can be associated with the overall process.

Reserve an LLC Name

If you’re not yet ready to launch your business and still need a little more time, you can choose to reserve your desired LLC name for later by submitting an Application for Name Reservation with the District of Columbia Government Corporations Division ($50 fee).

This can be done by mailing in the name reservation form above or by submitting an online request using the DC Department of Licensing and Consumer Protection’s (DLCP) CorpOnline system.

Either way, if your requested name is available, this reservation will keep anyone from being able to take it for up to 60 days.

It’s important to be aware that false statements on this application are taken seriously, and could lead to you facing fines of up to $1000 and/or prison time according to D.C. Code § 22-2405.

Note: To be able to successfully reserve a name, it must not be currently in use by any business entities within Washington DC. The way to check this is by performing a business entity search on the DLCP’s website.

Register a Trade Name

Another potential cost associated with naming your LLC is a “doing business as” (or DBA) name. This is essentially a nickname that you can choose to register for your business to operate under — particularly if you’re not content with your LLC’s legal name.

Registering a DBA name can be done by filing a TN-1 Trade Name Registration form with the Secretary of State and paying a $55 fee.

Note: In Washington, trade names must be renewed on a biennial basis ($55 renewal fee). For your first renewal, the deadline is April 1 of the second year following the registration of your LLC’s trade name.

Buy a Domain Name

Finally, you’ll want to focus on securing a good domain name (which is your website’s URL address) for your business. For this, try to focus on choosing one that’s easy for customers to remember, relevant to your business, and accurately reflects your brand.

After confirming the domain name you want to use is actually available, you can purchase it through a trusted registrar.

Step 2: Pick a Registered Agent

The next step you’ll need to take toward forming your LLC is to pick a registered agent.

This is an individual or business entity that accepts legal correspondence on behalf of your business, such as service of process, notice of lawsuits, and official government communications; you’re required to continuously maintain one as long as your LLC is active.

Your registered agent can be an individual or business entity, but will need to satisfy the following requirements according to DCOC § 29-104:

• If an individual, must be at least 18 years old and a Washington DC resident
• If an entity, must be authorized to conduct business in Washington
• Must maintain registered office at a physical street address within the state

Keep in mind that you can choose to act as your own registered agent if you’re looking to save money, though we don’t typically recommend this as you’re much more likely to suffer fines and penalties due to non-compliance than if you just hire a professional service.

On top of this, you’ll lose any anonymity your LLC would have given you since your name, address, and contact information will be publicly available.

Note: To have a look at some of our other top recommendations, you can also check out our Best Registered Agent Service of 2024 guide.

Step 3: Submit Your Articles of Organization

In Washington DC, the Articles of Organization is the filing document that you’ll need to submit with the Secretary of State in order to officially register your LLC (this is also referred to as the Certificate of Formation in other states).

For a domestic LLC filing their formation documents this will cost $99, while a foreign LLC would instead be expected to pay $220.

To complete your Articles of Organization, you’ll need to have the following information available:

• The official name of your LLC
• The location of your LLC’s principal office
• Your Washington DC registered agent’s name and address
• The date on which you want this form to become effective
• The names and addresses of the members/managers of your LLC
• The name and address of the person organizing the LLC
• The organizer’s signature along with the date of signing

In the sections below, we’ve discussed the two primary ways of filing this document with the Department of Licensing and Consumer Protection (which was previously known as the Department of Consumer and Regulatory Affairs) in more depth.

Online Filings

In almost all cases, filing your LLC formation documents online through the DCLP’s CorpOnline system is the quickest and easiest submission method.

Paper Filings

With that said, you’re also able to submit these documents by mail or in-person by printing out and completing either Form DLC-1 (domestic entities) or a Foreign Registration Statement (foreign entities).

Once you’ve filled out the relevant form for the type of LLC you’ll be organizing, you’ll be ready to go ahead and send it to the following address:

Business and Commercial Section
Secretary of State
P.O. Box 13697
Austin, TX 78711

Note: Be aware that if you submit your documents by mail, you’ll be required to include a cover letter alongside your submission.

Step 4: Create a Washington DC LLC Operating Agreement

Once this is completed, the next step you’ll need to take is to create an operating agreement.

This is an internal document that clearly outlines the ownership and management structure of your company in order to reduce potential future conflict.

While this document isn’t legally mandated in Washington DC, all LLCs are recommended to have one as it can help maintain both: smooth operations and your LLC’s corporate veil (which is what protects you from personal liability).

A number of companies provide drafting services for operating agreements online, typically for a fee of around a few hundred dollars. However, it’s quite easy to sort this out by yourself if you want to save money, and you can even find a number of free templates online to help with this.

Step 5: Get an EIN

Even though it’s not a legal requirement (unless your LLC has employees or multiple members), all Washington DC LLCs should apply for an Employer Identification Number (EIN).

This is a free, nine-digit number used by the IRS to identify your business and keep track of its tax reporting — much like a Social Security Number (SSN) for individuals.

You’ll need an EIN to be able to:

• Hire employees
• Open a business bank account
• Apply for some business licenses/permits
• Establish a line of credit

On top of this, using an EIN instead of a Social Security Number (SSN) helps to protect your personal information and safeguard your anonymity as the business owner of your LLC.

You can quickly apply for an EIN for your LLC online through the IRS website. You’re also able to submit a paper application using Form SS-4 either via fax to (855) 641-6935, or by mailing it to the following address:

Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999

Note: Don’t worry if you don’t already have an SSN, it’s not necessary to have one in order to apply for an EIN — instead, you can just leave Section 7b of the application blank and call the IRS on (267) 941-1099.

Step 6: File a BOI Report

Starting January 2024, the vast majority of LLC owners will be required to file a Beneficial Ownership Information (BOI) Report with the US Financial Crimes Enforcement Network (FinCEN).

This is part of an initiative by the U.S. government to stop individuals and entities engaging in illegal or unethical activities from being able to conceal this using “opaque ownership structures”, like shell companies, to hide their true identities.

Existing LLCs will be able to file this report anytime between January 1, 2024, and January 1, 2025, while new LLCs will have up to 90 days after the date they were initially formed to do so (30 days for LLCs formed after the start of 2025).

Keep in mind that failure to file your LLC’s BOI report on time can result in exorbitantly high fines (i.e., $591 per day) or even jail time (up to two years).

Note: Not every LLC owner is required to file a BOI report. For example, companies with more than 20 full-time employees, accounting firms, and banks are exempt. For a full list of filing exemptions, you can have a look at FinCEN’s website.

How to Maintain Your Washington DC LLC

In order to keep operating legally in the state of Washington DC, there are a couple of things you’ll likely need to periodically take care of, including:

• Getting a Basic Business License
• Filing a Biennial Report

Don’t worry if you’re not sure how to complete each of these steps, as we’ve detailed all the information you’ll need to know in the sections below.

Get a Basic Business License

Before your LLC can begin its operations within Washington, D.C., it will be required to first obtain a Basic Business License (BBL), regardless of how much revenue it generates.

The term “Basic Business License” is an umbrella for a range of individual licenses which regulate more specific business activities, including food services and the sale of flammable liquids.

Your LLC will need to obtain the relevant licenses for the particular activities it engages in. Each license will have its own distinct requirements, with fees typically ranging from $99 to over $3,000.

If your business isn’t covered under any of these specific categories, it will be necessary to obtain a General Business License (GBL) instead, which costs $99.

To be able to apply for this license, you’ll first need to acquire an Employer Identification Number (EIN) and register your LLC with the Office of Tax & Revenue. Depending on your business location, you will also need either a Home Occupation Permit or a Certificate of Occupancy.

Once these steps are completed, you can apply for the Basic Business License either online or by turning up at the My DC Business Center kiosk located in the Business License Center.

Note: Licenses must be renewed every two or four years (depending on which one you have). Applications for renewals will open as early as 75 days before your license’s expiration date.

File a Biennial Report

To ensure your LLC stays in good standing in Washington, D.C., you must submit a biennial report to the DC Department of Licensing and Consumer Protection by April 1 of each odd-numbered year ($300 fee).

The report is typically submitted online using the CorpOnline platform, though in-person and mail filings are also available by delivering Form BRA-25 to the following address:

Department of Licensing and Consumer Protection
Corporations Division
PO Box 92300
Washington, DC 20090

This report updates the District with crucial information about your LLC, including its:

• Principal address
• Member details
• Registered agent information

Note: It’s important to be timely when filing this report, as missing the April 1 deadline will result in a $100 late penalty fee — continued non-compliance after this could even lead to administrative dissolution.

Washington DC vs Other States

Choosing Washington DC as the location for your LLC offers several compelling advantages.

On top of being a global hub with access to a number of international markets, DC boasts a highly educated workforce — with over 61% holding a bachelor’s degree or higher.

Additionally, Washington DC provides robust support for businesses through various incentives and programs, including tax credits, grants, and special financing options aimed at fostering growth and innovation.

In particular, the city’s Global Soft Landing Program is a great example of this as it helps foreign companies establish a presence in the U.S. market — ensuring they start strong and also have the resources to continue expanding.

However, there are notable challenges associated with forming a business in DC. The cost of living and operating a business is significantly higher compared to other popular states like Texas or Florida, which often provide lower taxes and more business-friendly regulations.

Regardless, keep in mind that the best state to form your LLC is almost always the state that you will be operating in; this is because otherwise you’ll likely be required to register as a foreign LLC in your home state, meaning that you’ll need to pay registration and maintenance fees twice.

Washington DC Department of Consumer and Regulatory Affairs Contact Information

Mailing Address:
Corporations Division
PO Box 92300
Washington DC 20090

Physical Address:
1100 4th Street, SW
Washington, DC 20024
Monday, Tuesday, Wednesday, and Friday: 8:30 a.m. to 4:30 p.m.
Thursday: 9:30 a.m. to 4:30 p.m.

Contact Information:

Email: dcra@dc.gov
Phone: (202) 442-4400