CobaltProsper

How to start an LLC in District of Columbia

By Brent Chudoba, editor Updated

Forming an LLC in District of Columbia costs $99 to file the Articles of Organization for Domestic Limited Liability Company (Form DLC-1) with the District of Columbia Secretary of State. After that you file a biennial report of $300. District of Columbia also charges a franchise or business tax (details below). Biennial report fee is $300 (a $100 late fee applies if missed); first biennial report is due April 1 of the year following the calendar year of registration.

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

District of Columbia LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization for Domestic Limited Liability Company (Form DLC-1))$99
Biennial report$300 every 2 years
Franchise or business taxYes, see below
Registered agentRequired

Source: District of Columbia Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in District of Columbia?

  1. Name your LLC. Pick a name that is available and meets District of Columbia naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. District of Columbia requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization for Domestic Limited Liability Company (Form DLC-1). Submit it to the District of Columbia Secretary of State and pay the $99 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your biennial report. District of Columbia charges $300 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does District of Columbia have a franchise tax on an LLC?

Unincorporated Business Franchise Tax (Form D-30): net income taxed after a 30% owner salary allowance and $5,000 exemption; minimum tax is $250 if DC gross receipts are $1 million or less, $1,000 if DC gross receipts exceed $1 million. Exempt if more than 80% of gross income is from personal services rendered by the members and capital is not a material income-producing factor.

How is an LLC taxed in District of Columbia?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. District of Columbia has a state individual income tax with a top rate of 10.75% (graduated brackets), so those profits are taxed on your District of Columbia return on top of federal tax. Seven brackets: 4% up to $10,000; 6% $10,000-$40,000; 6.5% $40,000-$60,000; 8.5% $60,000-$250,000; 9.25% $250,000-$500,000; 9.75% $500,000-$1,000,000; 10.75% over $1,000,000.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

Sources