How Much Does an LLC Cost in District of Columbia

It costs at least $99 to form an LLC in the District of Columbia. But these additional expenses could increase the total to over $3,000.

Forming an LLC in the political heart of the United States could be a strategic move.

After all, having a D.C. address can lend credibility and a sense of prestige to your business. However, you must be prepared for the startup and maintenance costs.

Plan a budget with this in-depth guide, starting with the Articles of Organization.

You can also use the calculator below to get a clear picture of your minimum startup expenses.

Articles of Organization

One-Time Fee: $99^[1]

To form an LLC in the District of Columbia, you must file the Articles of Organization with the Department of Licensing and Consumer Protection. Once the documents are approved, your LLC will be recognized as a separate legal entity.

A Washington D.C. LLC's Articles of Organization contains the following information, among other details:^[2]

• Limited liability company name
  
• Registered agent name and address
  
• Principal office address
  
• Name and address of each member/manager

File the Articles of Organization by mail, in person, or online. Once submitted, your documents will be reviewed within 5 to 15 business days.^[3] Alternatively, you can pay for expedited services.

Foreign Registration Statement

One-Time Fee: $220^[1]

If you already have an LLC in another state and want to expand your business to Washington, D.C., register it as a foreign LLC with the Department of Licensing and Consumer Protection.

Don't forget to attach a Certificate of Good Standing from your domestic state.

Biennial Report

Annual Fee: $300^[1]

All LLCs in Washington, D.C., must file biennial reports with the Department of Licensing and Consumer Protection. These reports let the government, banks, and anyone who can access public records know that your business is still active.

In the District of Columbia, biennial reports are due by April 1st every other year—starting the year after your formation.^[5]

For example, if your LLC was formed on July 23, 2024, your first biennial report is due by April 1, 2025, and then every other year after that.

Business Permits and Licenses

Cost: At least $36.30

Most businesses in Washington, D.C., must have at least two business permits:

1. Zoning Permit
   If you run a business from home, you must pay the $36.30 home occupation permit.^[6]

   You may need a Certificate of Occupancy if your business is in a commercial space. The total cost is calculated based on square feet, but fees start at $75.^[6]

2. Basic Business License
   The type of basic business license you need depends on your business purpose. However, you can get a General Business License for $99 if your LLC does not belong to any of Washington, D.C.'s business licensing categories.^[7]

   Most basic business licenses must be renewed every two to four years, at least 90 days before the license expires. Otherwise, you may need to pay a penalty fee of at least $250.^[8]

The number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated by various governmental offices simultaneously and could renew yearly.

Business Taxes

Business Franchise Tax: At least $250/yr^[9]

LLCs are generally considered "pass-through" entities for tax purposes. This means the LLC's profits and losses pass through to the owners and are reported on individual tax returns.

However, in the District of Columbia, LLCs must pay a minimum of $250 business franchise tax for D.C. gross receipts of $1 Million or less.^[9] It's a tax on businesses for the privilege of operating in D.C.

As an LLC owner, you must also pay Washington, D.C.'s current income tax rate—up to 10.75% of taxable income.^[10] However, the District's income tax rates may vary yearly.

On top of that, you must also pay federal income taxes.

2025 Federal Income Tax Rates:^[11]

Don't forget the 15.3% federal self-employment tax.^[12]

Optional Fees

While the fees below are generally optional, some are unavoidable depending on your business needs.

For example, obtaining a Certificate of Good Standing is often necessary when opening an LLC bank account.

Expedited Services

Cost: $50 to $100^[13]

Documents filed online and by mail are reviewed in the order they are received—typically within 5 to 15 days.^[3] If you need it faster, you can pay for expedited services:^[13]

• Same-day service: $100
  
• 3-day service: $50

Walk-in filings are treated as same-day service, so you must pay an additional $100 on top of the document filing fee.^[4] For example, if you file the Articles of Organization in person, your total bill would be at least $199.

Registered Agent Services

Annual Cost: $0, or $100-$300/yr

In Washington D.C., you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.

You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Washington D.C.. You must also be available to receive documents during business hours.

However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.

Change of Registered Agent

Filing Fee: $50^[1]

You can change your registered agent's details by filing the Statement of Change of Registered Agent/Office with the Department of Licensing and Consumer Protection. Changes include the registered agent's name and address.

Some registered agents will shoulder this bill if you switch to their services.

Operating Agreement

Cost: $0, or up to $500+

LLCs in Washington, D.C., are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.

An LLC operating agreement contains the following:

• The roles and responsibilities of each member
  
• How new or departing members will be treated
  
• How business profits and losses will be divided

Ideally, you should already have a signed Operating Agreement before forming an LLC in Washington, D.C.,. But if your LLC is already formed, you can always draft it yourself after.

Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.

Employer Identification Number

Cost: $0, or $50 to $99

Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.

You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:

• Northwest Registered Agent: $50
  
• Bizee: $70
  
• ZenBusiness: $99

Single-member LLCs in Washington, D.C., don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.

Beneficial Ownership Information Report

One-Time Cost: $0, or up to $149

The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 30 calendar days of your LLC's formation.^[14]

It includes information about the LLC's beneficial owners, including name, birth date, and address.

FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:

• Northwest Registered Agent: $25
  
• LegalZoom: $149
  
• ZenBusiness: $149

You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.

Name Reservation

Cost: $50^[1]

If you already have a business name but aren't ready to form an LLC, you can reserve your desired name first. This will prevent others from using that name for up to 120 days.^[15]

Remember to review the District of Columbia's naming regulations. For example, an LLC name must include LLC, Ltd., or similar.

Trade Name

Cost: $55^[16]

A trade name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state. Some LLCs use a DBA for branding purposes, like using a name without "LLC" at the end.

In the District of Columbia, trade names are valid for two years. If you want the LLC to keep using the same name, you must pay the $55 renewal fee every other year by April 1st.^[16]

Certificate of Amendment

Cost: $220^[1]

Your Washington, D.C., LLC's Articles of Organization contains specific details about your business. Should these details change, you must file an amendment with the Department of Licensing and Consumer Protection.

File an amendment if you:

• Change the LLC name
  
• Move to a new location
  
• Appoint a new registered agent

You must also file a statement of change with the $50 filing fee if you update your registered agent's details.

Certificate of Good Standing

Cost: $50^[1]

A Certificate of Good Standing is an official document by the Department of Licensing and Consumer Protection. It verifies that your LLC is updated with all state filings and has paid all its fees and taxes.

You might need a Certificate of Status to:

• Open a bank account
  
• Apply for business loans
  
• Qualify for business insurance
  
• Conduct business as a foreign LLC

Certified Copies

Cost: $50^[1]

Certified copies of documents verify that your LLC is legitimate and that its details are accurate.

You might need these for circumstances like opening a business bank account or expanding your LLC in another state.

Additionally, some LLCs keep certified copies of their initial Articles or Organization and amendments (if any) for recordkeeping purposes.

Business Website Domain

Annual Fee: $10 to $20

A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.

Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.

Business Insurance Premiums

Cost: Varies

Employers in the District of Columbia with one or more employees must have workers' compensation insurance.

You can self-insure, shop from a private insurance carrier, or obtain coverage through the Assigned Risk Pool.

Additionally, consider protecting your LLC's assets with other types of insurance:

• General liability insurance
  
• Commercial property insurance
  
• Professional liability insurance
  
• Cyber liability insurance

The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.

Curious to know how much it costs to maintain an LLC in Washington, D.C.? Use the calculator below to get a clear picture of your ongoing expenses.

Bottom Line

You need at least $99 to form an LLC in the District of Columbia. But you may incur more expenses like:

• Name reservation: $50
  
• Trade name registration: $55
  
• Zoning permit: At least $36.30
  
• Basic business license: At least $99

That said, the total cost of forming an LLC in the District of Columbia will increase depending on the additional services, documents, and licenses you need. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.

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