Should you form your LLC in the District of Columbia? We've collected the relevant information that will help you make this decision.

Pros

  • Location 
  • Qualified workforce
  • Home to one of the top 20 metro areas in US

Cons

  • Competitive market
  • Proceeds over $11,400 subject to tax

Cost of doing business

  • $220 filing fee / $300 annual report

Privacy

  • Owner disclosure in original filing

Forming an LLC in the District of Columbia

The name
In order to communicate to the public that your new business is an LLC, its official name will need to end with one of the following signifiers (or abbreviation of): “Limited liability company”, “LLC”, or “L.L.C.” In addition, it is required that the name of your business is not intentionally misleading to consumers, for any reason. Your company’s new name must also be completely unique, and not deceptively similar to any other organizations name or trademarks. There are restrictions of the use of the word “bank.” Do a FREE name search now.

Ownership
The owners of an LLC are called “members.” The following information must be required regarding your LLCs members:

  • Required number of members
    The District of Columbia LLCs must have at least one member or manager listed in their incorporation documents.
  • Age restrictions
    LLC members in The District of Columbia may be of any age.
  • Residence restrictions
    LLC members in The District of Columbia must have a physical address, which cannot be a PO box.
  • What information needs to be included in the Articles of Organization?
    LLC Members in The District of Columbia are required to list their name and addresses in the Articles of Organization.

Requirements for the Articles of Organization

The Articles of Organization is a document that must be filed during the LLC formation process in every state. Here is the information that must be included in this document when filing in The District of Columbia:

Registered agent information
All The District of Columbia LLCs must have a registered agent on file, and submit their name and address (which cannot be a PO box). This agent will be required to be accessible during standard business hours, and act as the state’s point of contact with the company. Learn more about registered agents.

Additional District of Columbia filing requirements

Many states have steps in the LLC formation process that are unique to that state. These can also vary at the municipality or county level as well. Here are the atypical steps required throughout all of The District of Columbia:

Initial report deadlines
New LLCs in The District of Columbia are required to file an initial report within six months of incorporation.

If your business is a professional practice
Professional service companies are permitted to form under the professional limited liability company (PLLC) structure.

The District of Columbia LLC taxation and fee requirements

There are several tax and fee requirements that must be addressed by LLCs in The District of Columbia. They are as follows:

Taxation
All states have complex taxation requirements. For more information regarding taxes in The District of Columbia it is advised that you visit the state’s official business related website. 

Annual report requirements
LLCs in The District of Columbia are required to file a bi-annual report every other year before June 16. The cost of this filing is currently $300. Learn more about annual reports.

Tax identification numbers
The District of Columbia requires an EIN (employee identification number) for all LLCs that will have employees, and most banks will require one to open accounts. The District of Columbia does not require LLCs to obtain state tax ID numbers. Learn more about EINs.

Business license requirements

The business licenses and permits required in The District of Columbia vary wildly depending on the county or municipality in which your new LLC is located. If you would like to see more in-depth information on licenses and permits, please feel free to visit the content in our learning library that covers business licenses and permits.

Need a District of Columbia corporation instead? Click here.