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How to Start a Business in District of Columbia

How to register a business in District of Columbia and everything else it takes to open legally, in order — sole proprietor vs. LLC, the state filing, your EIN, tax registration, and licenses, with the official District of Columbia links for each step. Most people finish the core setup in one to three weeks.

LLC filing fee
~$99
Processing
1–2 business days online
Ongoing report
biennial · ~$300
State sales tax
yes
State income tax
yes

  1. How to register a business in District of Columbia

    Sole proprietors under their own name file nothing with District of Columbia to exist — a DBA if you use a trade name, plus local licenses. To register an LLC or corporation you file formation paperwork with the District of Columbia business filing office (about $99, 1–2 business days online), then get a free EIN and register for state taxes.

    District of Columbia business registration ↗

  2. Pick a structure (sole proprietor or LLC)

    Most District of Columbia owners start as a sole proprietor (free, no filing) or form an LLC for liability protection. The LLC filing fee is about $99, and formation typically takes about 1–2 business days online. Confirm the current fee on the state site before you pay.

    District of Columbia business filing office ↗

  3. Name a registered agent

    If you form an LLC or corporation, District of Columbia needs a registered agent with a physical in-state address. You can be your own agent if you're available during business hours, or hire a service for about $100–$150/year.

  4. Get your EIN from the IRS

    An Employer Identification Number is free from the IRS and takes a few minutes online. You need it to open a business bank account and to hire.

    IRS — Apply for an EIN ↗

  5. Register for District of Columbia taxes

    District of Columbia has a state sales/use tax and has a state income tax. DC also requires a Basic Business License and, for LLCs, the unincorporated business franchise tax above a threshold.

    District of Columbia tax registration ↗

  6. Confirm local licenses and permits

    District of Columbia rarely issues a single statewide "business license" — most licensing is by city or county, plus profession-specific licenses. Check your city and your trade.

    District of Columbia professional licensing ↗

  7. Open a business bank account and get insurance

    Keep business and personal money separate from day one. General liability insurance is the baseline; some contracts also require a bond.

  8. Put the ongoing report on your calendar

    District of Columbia requires a biennial report (about $300). $300 every two years, first due April 1 of the year after formation

    District of Columbia reports ↗

Start your business in District of Columbia

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Frequently asked

How do I register a business in District of Columbia?

Sole proprietors under their own name file nothing with District of Columbia to exist — a DBA if you use a trade name, plus local licenses. To register an LLC or corporation you file formation paperwork with the District of Columbia business filing office (about $99, 1–2 business days online), then get a free EIN and register for state taxes.

How much does it cost to register a business in District of Columbia?

Registering as a sole proprietor is free (a DBA filing, if you use a trade name, is usually $10–$50 at the county or state). Registering an LLC costs about $99 in District of Columbia, plus a biennial report (~$300). An EIN from the IRS is free.

How much does it cost to start an LLC in District of Columbia?

The state filing fee is about $99. Beyond that, budget for a registered agent if you hire one (~$100–$150/year), the biennial report (~$300), and any local license fees. An EIN is free.

Do I need an LLC to start a business in District of Columbia?

No. You can operate as a sole proprietor in District of Columbia with no state filing. An LLC adds a layer of personal liability protection and can make you look more established to customers and lenders — it's a judgment call based on your risk and goals, not a legal requirement.

How long does it take to form an LLC in District of Columbia?

Standard processing is about 1–2 business days online. Many states offer paid expedited options.

Does District of Columbia have a sales tax?

Yes. If your product or service is taxable in District of Columbia, you must register with the state tax agency before you collect tax. Many services are not taxable — confirm on the official site.

What ongoing filings does a District of Columbia LLC have?

District of Columbia requires a biennial report (about $300). $300 every two years, first due April 1 of the year after formation

Official sources

Fees and timelines are commonly-cited figures last reviewed September 2026 and can change — always confirm on the official site. This is educational information, not legal or tax advice.

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AI-generated guidance is for educational purposes only and is not legal, tax, or investment advice. Disclosures · Trust center