How to Start LLC in Washington DC Step-by-Step Guide

For further details on LLC expenses, Explore the specifics of LLC costs in Washington DC.

See "How Long Does It Take to Form an LLC in Washington DC" to find out how long it will take to get your LLC approved and to make sure there are no delays.

Here are the steps to forming an LLC in Washington DC

1. Search for your Limited Liability Company (LLC) Name

To ensure your Washington DC LLC name is available and meets state requirements, follow these steps.

First, search your business name. Entity Search tool to ensure it's unique and not already in use.

This is necessary because two businesses in the state cannot share the same name.

Second, check domain availability for an online presence Select a name that is memorable to the customer and best suited for the brand.

We'll explore the specifics of naming an LLC in Washington DC in greater detail.

2. Find a Registered Agent in Washington DC

The next step is to select the Washington DC Registered Agent.

A person or organization appointed to accept official notices and legal communications on behalf of your LLC may function as your LLC's registered agent in Washington DC. To carry out this function efficiently, they must have a physical address inside the state.

Who is eligible to serve as an LLC Registered Agent?

Your LLC's registered agent can be you.

• A trusted friend or family member
• A professional Registered Agent Service
• You

They must have a physical address in Washington DC, as PO Boxes are not acceptable.

The Registered Agent's details are available to the public in state records.

If you prioritize privacy or lack a physical Washington DC address, a Registered Agent Service could be beneficial.

3. File the Washington DC LLC Articles of Organization

Prepare and submit the Articles of Organization to the Washington DC Department of Licensing and Consumer Protection.

Guide for completing the articles. Including details like your name and registered agents.

Filing the Washington DC LLC Articles of Organization costs $99 when submitted online. This is a one-time cost to create your LLC.

If you want to file this yourself, see our step-by-step guide: ?.

4. Create the Washington DC LLC Operating Agreement

A Washington DC LLC Operating Agreement is like a companion document to an Articles of Organization. The articles create your LLC, while the Operating Agreement explains who owns it.

Banks may require it to open your LLC business bank account, and it is important in court to prove your LLC is running correctly.

That's why we recommend that all LLCs, including Single-Member LLCs, have an Operating Agreement.

Operating Agreement is essential in legal proceedings because it serves as evidence that your LLC operates by proper governance practices, bolstering your defense in court.

An Operating Agreement is an internal document, so you don’t need to file it with the IRS. Just keep a copy in your business records for your reference.

5. Get an EIN for LLC

Getting a Washington DC EIN from the IRS for LLC.

An EIN (Employer Identification Number) is needed for:

• Identifying tax purposes
• Open the business bank accounts
• Apply for licenses and permits

How can I obtain an EIN?

For US Citizens or Residents: If you possess an SSN or ITIN, you are eligible to apply for an EIN online. Follow these steps and apply for an EIN online.

For Non-US Residents: You are unable to obtain an EIN online, but you can still acquire one through fax or mail. Follow these steps to get an EIN without an SSN or ITIN.

6. Register with the Office of Tax & Revenue

Every LLC doing business in Washington, DC, must register with the Office of Tax & Revenue (OTR) to file taxes.

This registration process necessitates obtaining your Employer Identification Number (EIN) from the IRS

Registering for taxes with the DC Office of Tax & Revenue is a complimentary service for LLCs based in Washington DC You can easily complete the tax registration process online through the OTR portal, MyTaxDC. Once your registration is submitted, your LLC will be officially enrolled for all required District of Columbia taxes. Notifications regarding tax deadlines will be sent accordingly.

Following the submission of your tax registration, anticipate receiving a Notice of Business Tax Registration by mail within 3 to 5 business days. Your LLC’s Notice Number, located in the upper-right corner of the letter, will be necessary for applying for your Basic Business License, as outlined in subsequent steps.

7. Get a Certificate of Occupancy or Home Occupation Permit

In Washington, DC all LLCs are required to obtain either a Certificate of Occupancy or a Home Occupation Permit (HOP) to legally conduct business.

• A Certificate of Occupancy is necessary if your LLC will own or lease office or commercial space.
• A Home Occupation Permit (HOP) is required if your business operates from a residential building.

The cost of a Certificate of Occupancy for most LLCs is $75, though fees may vary based on the size of the commercial space.

Most applications for a Certificate of Occupancy are submitted by emailing the required forms to the DC Department of Buildings.

A Home Occupation Permit is $122. And you must get a HOP regardless of whether you rent or own the home.

8. Get Washington DC Business Licenses and permits

For an LLC to legally conduct business in the District of Columbia, a Basic Business License (BBL) is required. Make sure you have the following paperwork available before submitting an LLC business license application:

1. LLC Certificate of Organization
2. LLC's EIN Number
3. Notice of Business Tax Registration letter
4. Certificate of Occupancy or Home Occupation Permit

What Should I Do after the LLC is Approved?