District Of Columbia LLC Costs – Detailed Breakdown (Apr. 2026)

The first step when creating your Limited Liability Company (LLC) in Washington DC is to submit your Articles of Organization to the Department of Licensing and Customer Protection (DLCP) and pay the $99 filing fee. This is your main one-time LLC formation cost.

Once your LLC is operational, you must file a Biennial Report every two years and pay $300 per filing. In addition to this, you have other expenses when forming and maintaining your LLC. These include obtaining your Certificate of Occupancy/Home Occupation Permit (CofO/HOP), paying your applicable taxes, and acquiring your Basic Business License (BBL).

The table below lists the primary LLC costs in the District of Columbia. Some are required when forming your business, while others are ongoing operating costs.

In this article, I will discuss the main District of Columbia LLC costs required when forming and running your business. Read each section carefully to understand your required budget better.

The District Of Columbia LLC Costs Breakdown

1. Choosing An LLC Name ($0)

Your first step when forming your LLC is to pick a suitable LLC name. Choosing your name in Washington DC costs nothing, as you do NOT need to reserve it before filing your formation documents with the DLCP.

• Your LLC name must be unique and distinguishable from existing district business names.
• It must also follow the district’s naming rules and regulations.

2. Appointing An Official Registered Agent ($0–$199 Annually)

All domestic and foreign LLCs must appoint and maintain an official Registered Agent when operating in the district under DC Code § 29–104.02. This is an individual or a business whose primary job is to receive and process state regulatory notices, legal filings, and service of process on behalf of your LLC.

You have two main Registered Agent choices, provided that they fulfil the requirements stated above:

1. A non-commercial Registered Agent: An individual such as yourself, a trusted friend, or a family member.
2. A commercial third-party Registered Agent service.

You do NOT need to pay an annual fee if you nominate yourself or another individual. While this option may save you money initially, it can cause several issues:

• Your agent’s personal details (name and address) will be on the District of Columbia public record. This can expose your personal information to potential fraud when acting as your own agent.
• Your agent must be available during normal operating hours. If you use an individual who has other commitments, you increase the risk of them missing important district documents and legal filings.

I highly recommend hiring a professional third-party Registered Agent service. These generally cost around $150 to $199 per year.

You can read this guide for a detailed comparison of your options: DC Best Registered Agents.

3. Filing Your Articles Of Organization ($99)

Submitting your completed LLC Articles of Organization to the DLCP officially establishes your business as a separate legal entity. This is stated under DC Code § 29–802.01, and costs a one-time fee of $99 to complete your filing.

Once completed, your filing should typically be approved within 5 business days. You can use an expedited processing option and pay an additional fee if you need faster approval.

For details regarding your expedited filing options and other requirements, you can read my full guide on the DC Articles Of Organization.

4. Completing Your LLC’s Internal Operating Agreement ($0)

Your LLC Operating Agreement is a foundational internal business rulebook that defines how your business will be owned, operated, and managed. It sets rules regarding how your LLC will run and how daily decisions will be made.

As an internal business document, you do NOT need to file it with the DLCP or any other official government agency. You should keep a signed physical copy with your official business records. Furthermore, each LLC member should keep a physical, signed version for their own records.

Make sure that your Operating Agreement clearly specifies your LLC management structure:

1. Member-managed LLCs: All LLC members are responsible for daily operations and decision-making processes. This structure is best for small businesses.
2. Manager-managed LLCs: LLC members appoint one or more managers to handle daily business operations and major decisions. Other members remain as passive investors.

Download my free District of Columbia LLC Operating Agreement templates and tailor them to your business needs. Alongside this, read my DC Operating Agreement guide for step-by-step customization tips.

5. Obtaining Your EIN ($0)

You must obtain an EIN from the Internal Revenue Service (IRS) when operating your LLC in Washington DC. This is completely free to obtain and required for several important business tasks:

• Opening a dedicated business bank account.
• Hiring LLC employees.
• Filing required taxes.

Only apply once the district has officially approved your LLC. This means that you must have filed your completed Articles of Organization and received your approved version. This is because the IRS needs your business to be an existing legal entity before giving you an EIN.

See my guide on How To Get An EIN In DC for a detailed breakdown on how to obtain your EIN.

You have two main ways to obtain your EIN based on your U.S. residency status. I’ve explained both methods in the boxes below.

6. Completing Your Required Tax Registrations ($0)

Every LLC beginning business operations in Washington DC must complete and file Form FR-500, also known as the Combined Business Tax Registration Application. This must be filed online via the MyTax DC to set up your tax accounts for sales, use, and withholding taxes. There is no filing fee for completing your application.

Make sure you don’t submit your form until you’ve obtained your EIN and applied for your BBL. This is because you need an EIN to complete your registration process. Also, you need your Notice Number (issued after approval) to finalize your DC business license application.

You can read my guide on the DC Tax Registration to learn more about how to register and the different requirements.

7. Obtain Your CofO Or HOP ($75 – $125)

Every LLC in Washington DC must acquire a CofO or an HOP to operate legally in the district. After obtaining your required permit or certificate, you need to provide your CofO/HOP number when applying for your LLC’s BBL.

A CofO is needed when operating in a commercial building. It confirms that the building is legally approved for your specific business use. Your filing cost depends on your building size, with most people paying a one-time fee between $75 and $125.

Read my DC CofO article if you want to learn more about how to obtain your certificate and the different requirements.

An HOP is needed if you run your LLC from a home in Washington DC. Furthermore, you must comply with permitted-use rules. You need to get an HOP regardless of whether you rent or own, operate part-time or full-time, or live in a house or an apartment, as long as your operations don’t negatively impact the surrounding neighbourhood. The total cost for obtaining your HOP is a one-time fee of $122.60.

You can read my guide on how to obtain your HOP and the different requirements here: DC HOP.

8. Maintain Your BBL (Varies)

Any business operating in the District of Columbia must maintain a BBL under DC Code § 47–2851.02.

From September 2025, the BBL fee structure was simplified across all categories using the B.E.S.T. Act. While LLCs can choose the 6-month, 2-year, or 4-year license, not every category offers all three options.

The fee for each option is as follows:

• 6-month license: $49.
• 2-year license: $99 (this is the most common option).
• 4-year license: $198.

You can use the My DC Business Center page to apply for your BBL and pay with a credit or debit card. However, you may need to pay a small card fee when completing your payment.

Some operating industries have additional licensing requirements, such as obtaining professional or occupational licenses. See my guide on the DC Business Licenses & Permits to learn more about your license requirements.

9. File Your Biennial Report ($300 Every 2 Years)

The DC Biennial Report (Form BRA-25) is a mandatory document that must be filed every two years with the DLCP. It keeps them up to date regarding your business and ownership details.

You must pay a $300 DC Biennial Report filing fee, regardless of your filing method. If you ignore this requirement, your LLC may be automatically administratively dissolved by the DLCP under DC Code 29-106.01.

Your first DC Biennial Report is due by April 1 of the year following your LLC’s registration date. After this, it’s due on April 1 every two years thereafter.

You can read my full guide on how to complete your filing, including the different requirements, here: DC Biennial Report.

10. Handling Your Washington DC LLC Tax Obligations (Varies)

Once you’ve registered with the Washington DC Office of Tax and Revenue, you must ensure you complete your ongoing tax requirements when operating. These depend on your operating location and chosen business activities.

a. Federal Taxes

You may need to complete one or more federal tax filings depending on your business structure and operations. Some of your common federal tax responsibilities include:

• Federal excise taxes: This applies to certain products, services, or regulated industries.
• Federal income tax: This is reported on your LLC members’ individual tax returns unless you elect to be taxed as a corporation.
• Federal payroll taxes: This is required if your LLC has employees.
• Self-employment tax: This applies to LLC members actively working or running the business. It’s calculated based on their profit shares.

b. District-Level Taxes

Alongside this, some Washington DC LLCs may need to collect and remit several district taxes. These include the:

• Sales and Use Tax: You must register to collect and remit Sales Tax to the Office of Tax and Revenue if your LLC sells taxable goods or services.
• Minimum Tax: This is required if your DC LLC’s gross receipts are above the stated threshold.
• Franchise Tax: LLCs operating in the district need to pay tax based on their income derived from sources in the district.
• Unincorporated Business Tax (UBT): Generally speaking, unincorporated businesses such as LLCs must pay the same franchise tax rate on their net income.

Essential Contact Details For Washington DC LLCs

1. DLCP Contact Information

You can contact the DLCP if you have any questions or queries regarding your formation filings. Their knowledgeable team members can help you with general questions regarding your Articles of Organization.

• Phone: 202-671-4500.
• Address: 1100 4th Street SW, Washington, DC 20024.
• Online Services: CorpOnline (business entity search), Scout (license status).
• Opening hours: Monday to Friday, 8:30 A.M. to 4:30 P.M. ET. (9:30 A.M. on Thursdays).

2. Contact Information For The Department Of Buildings

If you have questions regarding your HOP or LLC’s CofO, contact the Department of Buildings:

• Phone: 202-671-3500.
• Online chat: Click the speech bubble on the Department of Buildings website.
• Hours: Monday, Tuesday, Wednesday, and Friday: 8:30 A.M. to 4:30 P.M., Thursday: 9:30 A.M. to 4:30 P.M.

3. DC Office Of Tax And Revenue Contact Information

Reach out to the Office of Tax & Revenue if you have any questions about your tax registration procedures.

• Phone: 202-727-4829. 
• Office hours: 8:15 A.M. to 5:30 P.M., Monday to Friday.
• Address: 1101 4th Street, SW, Suite 270, Washington, DC 20024.

4. DC Business Licensing Division

Contact the Business Licensing Division using the details below if you have questions regarding your DC Business License or licensing categories.

• Phone: 202-671-4500 (press “2” for licensing).
• Hours: Monday to Friday, 8:30 A.M. to 4:30 P.M. (Thursdays: 9:30 A.M. to 4:30 P.M.).

Frequently Asked Questions