Washington DC LLC
Washington DC LLC
Steps to Form a Washington DC LLC:
- Name Your LLC: When you form a Washington DC LLC, you must first select a name for your business. The name cannot already be registered in DC, and it must adhere to district law. To see if your name is already on file, you can conduct a simple DC Business Entity Search.
- File Articles of Organization: To form an LLC you file Articles of Organization with the Department of Consumer & Regulatory Affairs Corporations Division. This can be mailed, hand-delivered, or filed online. There is a $220 filing fee.
- Designate a Registered Agent: On your Articles of Organization, you will be asked to appoint a DC registered agent to accept service of process on behalf of your company. A District of Columbia registered agent must maintain a physical street location within the district, and all business documents accepted by the agent must be forwarded to clients in a timely manner.
- Write an Operating Agreement: An operating agreement is the document that lays out the ownership of your LLC. It also outlines how your company will operate: the management structure, responsibilities and rights of managers and members, how new members can buy in and how initial members can sell out, as well as how annual meetings will be held.
- Open Bank Accounts: When you form an LLC, you will need business accounts for your company. These accounts will process all incoming and outgoing transactions. Most banks will require you to provide copies of your Articles of Organization and operating agreement in order to open an account.
- File Your Biennial Report: After you form an LLC in the District of Columbia, you will need to file your first biennial report the following April 1. After that, you will file every two years. The biennial report fee is $300, and the document can be filed online.
- Submit Beneficial Ownership Information Report: After company formation, you must file a BOI report with the federal Financial Crimes Enforcement Network. This report must be filed online. There is no fee to file and the information you provide does not go on the public record.
| Washington DC LLC Facts | |
|---|---|
| The Form | Articles of Organization |
| The Agency | DCRA Corporations Division |
| Filing Fee | $220 |
| Our Fee | $365 (includes registered agent service) |
| Online Filing | Yes |
| Biennial Report Due | April 1 |
| Biennial Report Fee | $300 |
Additional Resources:
How to Start an LLC in DC
How to Form a DC LLC (paper filing)
Do I Have to Appoint a Commercial Registered Agent in DC?
You are legally required to appoint a registered agent for your District of Columbia LLC. However, in DC you can appoint either a commercial or a non-commercial registered agent. They perform the same duties, but a commercial agent has registered with the DCRA and paid a fee to be considered a commercial agent.
Is There a Late Fee for Filing the Biennial Report After April 1?
Yes. There is a $100 late fee.
District of Columbia Registered Agent
A Washington DC registered agent is required to maintain a registered office within the district. This is a physical street address (not a PO box). The registered office must be kept open year round during regular business hours. The agent consents to accepting service of process (notice of a lawsuit) and other important business mail and forwarding all documents to clients in a timely manner.
What is the Effective Date?
On your Articles of Organization, you can elect an effective date, which is a date in the future upon which you want your LLC formation to officially take place. If you select an effective date, it can be no later than 90 days after your filing date. Your LLC will not be officially formed until the effective date.
If you do not want to elect an effective date, you can leave the space blank.
Washington DC LLC Biennial Report and Taxes
After you form an LLC in Washington DC, you will be required to file a biennial report every two years. The first report must be filed on April 1 the first year after formation. After the first year, you will file by April 1 every two years. The filing fee is $300. There is a $100 late fee. You can file the biennial report online.
There is a 4% to 8.5% income tax in the District of Columbia, as well as a 6% sales tax.
Federal Beneficial Ownership Information Report Filing
As a newly-formed LLC, you’ll probably need to submit a Beneficial Ownership Information (BOI) Report to the Financial Crimes Enforcement Network (FinCEN). The BOI report provides the federal government with basic information about your LLC and the people with the most power over your business decisions and profits. Starting January 1, 2024, this report is due following company formation. This report is a little complicated, but we can make filing painless with our $9 BOI report filing service.