Best District of Columbia (DC) LLC Services Reviewed by ZenBusiness

How to Set Up a Washington D.C. LLC on Your Own

Technically speaking, you don’t have to use an LLC formation service like ZenBusiness or LegalZoom. These services are incredibly helpful, but you can save money by completing the process yourself.

You can read our complete guide to DIY an LLC setup in Washington D.C., but here’s a quick look at the process:

Choose a business name

Every LLC in  Washington D.C. needs a name that’s memorable and gives potential clients a good idea of what goods or services are available. The name also needs to be unique — both for legal reasons and so your business stands out from the competition.

Appoint a D.C. registered agent

As we’ve mentioned in this guide, every LLC needs an agent who can accept service of process on your behalf. In all states, you can act as your own registered agent as long as you have a physical address in the state. That said, we generally recommend that you appoint someone else (like an online service) to act as your agent.

File the Articles of Organization

This document, once filled out and filed, officially forms your business in the District of Columbia. You’ll need to provide some important information, including your contact information, your business address, signatures for your LLC’s members, and more. Washington D.C. has a $99 filing fee.

Setting up the LLC is literally as easy as 1-2-3; it’s the maintenance requirements that are a bit more complicated:

Register for and pay taxes

If you have employees, you’ll need to get an Employer Identification Number from the IRS. Then there are district-specific taxes, too. Most LLCs will be subject to D.C.’s unincorporated franchise tax. The standard rate is 8.25%, but there is a minimum fee of $250. Businesses involved in retail sales will need to collect and pay the district’s sales tax (6%). You can learn more about these and other miscellaneous business taxes at the Office of the Chief Financial Officer.

Get licenses and permits

Every business in D.C. needs to obtain a basic business license. However, which specific type you need will depend on what your business does. There’s also a good chance that you’ll need industry-specific licenses, such as those listed by the Department of Consumer and Regulatory Affairs.

Create an operating agreement

Even single-member LLCs should create a “master document” that sets out how the business will operate, both now and in the future.

File your biennial report

Every other year, your LLC will need to file a report to update the district about the standing of your business. It is due by April 1st, and D.C. requires a $300 filing fee for this document.

Obtain business insurance

Every business with employees needs to maintain workers’ compensation insurance and a commercial vehicle policy for company-owned vehicles. You may also want to get a general business liability policy, too.

Get a business bank account

You should sign up for a business bank account so you can write checks and make purchases in the name of the business instead of pulling from your personal accounts (a legal no-no).

This is just the tip of the iceberg, though. For more detailed guidance, we recommend contacting an attorney or checking out the full Washington D.C. LLC Formation Guide.

What Is a Washington, D.C., LLC?

LLCs are formal legal entities that are typically taxed similarly to sole proprietorships and general partnerships, in that the owners include any company profits or losses into their personal returns — the LLC itself does not owe income taxes. For more a more in-depth description see: What is an LLC?

The Total Cost of Forming and Maintaining an LLC in Washington D.C.

In addition to the costs of a business formation service or hiring an attorney (which are optional, as we’ve discussed), there are quite a few other required and optional expenses when forming and maintaining a Washington D.C. business. You cannot form an LLC in Washington D.C. without filing the Articles of Organization, the document that officially registers your business within the District. The filing fee is $220.

Some areas require all their businesses to submit annual reports, but the District of Columbia is a bit different: the District requires all businesses to submit a Biennial Report every other year. This report is pretty simple, but it keeps the District up-to-date on vital business facts like your registered agent and your address. The filing fee is currently $300. Read more about D.C costs – Washington D.C LLC costs.