DC LLC costs: summary
It’s not always easy to stay on top of every cost involved with forming an LLC and keeping it in good standing every year thereafter. That’s why we’ve created a handy chart for you here, so make sure to bookmark this page in your browser for future reference!
| Item | Cost |
|---|---|
| LLC filing fee (articles of organization) | $99 |
| Reserve business name (optional) | $50 (holds the name 120 days) |
| Filing a DBA (optional) | $55 (valid 2 years; renewal $55) |
| Certificate of good standing | $50 |
| Registered agent service (optional) | $50 to $300 per year |
| Business license (cost varies by license category) | General business license: $49 (6 months), $99 (2 years) or $198 (4 years); other categories vary |
| Operating agreement (optional) | $0 to $1,000 |
| Unincorporated Business Franchise Tax | 8.25% of net income; $250 minimum ($1,000 if DC gross receipts are over $1 million); applies if gross receipts are over $12,000 |
| Biennial report | $300 |
| Biennial report late fee | $100 |
| Expedited service (optional) | $100 for same day; $50 for 3-day |
| Amendment or restatement of certificate of organization | $220 |
| Statement of dissolution | $220 |
Setting up a new business is one of the most exciting steps you can take in launching your new career or side hustle. The endless possibilities are matched only by the anxiety you probably feel in figuring out how to set up your LLC (limited liability company). Of course, that probably leads you to the question, “How much does an LLC in DC cost?”
Starting a Washington DC LLC can be difficult if you don’t know what you’re doing. That’s the bad news. The good news is, it doesn’t have to be that expensive. As long as you understand the basic steps, you’ll likely find it easier than you think.
So just what are those steps and costs? What kind of filing fee are we talking upfront? What do the annual fees look like? Should you use a registered agent service, and if so, what will it cost you?
In this post, we’re going to answer those questions. We’ll look at the specific costs for different requirements and services needed when setting up an LLC in DC. We will also tackle one of the most commonly raised issues: whether you need a registered agent. Let’s get started.
General steps and costs when forming a DC LLC
Forming an LLC in the District of Columbia is a multi-step process, with fees attached to many (but not all) of the steps. Instead of feeling overwhelmed, just follow the step-by-step process we’ve outlined here.
Naming your DC LLC
Picking a name is one of the most exciting parts of your business, but it’s also one of the most stressful. You want a name that is:
- Unique and not easily confused with other businesses
- Easy to pronounce
- Memorable
- Able to withstand the test of time as your business grows
Once you have a general idea of the direction you want to take, you should perform a DC entity search using DC BOSS (formerly CorpOnline) to ensure your District of Columbia LLC name isn’t already being used.
Make sure you name your business according to DC’s rules, which say that your LLC name must include “LLC,” “L.L.C.,” “LC,” “L.C.,” “limited liability company” or “limited company,” unless it is a profession (attorney, architect, doctor, dentist, etc.), in which case you must use “PLLC.” If you fail to do this, your LLC may not get approved.
In some cases, you may wish to do business under a different name than your LLC. This is useful when you want a very clear LLC name, e.g. Your Name LLC, but want your business to have a more fun one, e.g. KidsJump for a trampoline center. In that case, you want to file a DBA, or “doing business as,” also called a trade name in DC.
This is also useful when you want to operate multiple arms of a business under one LLC, so that you account for income and get taxed the same. In that case, you might have a DBA named KidsJump and another named KidsWear, for instance. The cost of filing a trade name is $55, and the registration is valid for 2 years (renewal is also $55).
Either way, you have the option of reserving your LLC name if you know what you want but aren’t yet ready to file your articles of organization. The cost for doing so is $50, and the reservation holds the name for 120 days.
Filing articles of organization
The cost for filing articles of organization, the paperwork that makes your LLC official, is $99 in Washington, DC. This may be referred to as the LLC filing fee or the articles of organization fee, but they are the same thing.
Beneficial ownership information (BOI) report
Since March 2025, FinCEN no longer requires companies formed in the U.S. (or U.S. persons) to file beneficial ownership information reports. Note that DC’s own biennial report does ask you to list anyone who owns more than 10% of the LLC.
Appointing a registered agent
If you’re feeling a little beside yourself at the amount of work to do so far, take heart: There is another option. Of course, you can do all of the above steps by yourself, and many people do.
However, if you don’t feel up to it, you might want to hire a registered agent service. Every DC LLC must have a registered agent, who receives legal and government mail and service of process for the LLC.
Registered agents can also help you make sure you are always in compliance.
Considering a DC registered agent service costs somewhere between $50 and $300 a year, it’s a reasonable price to pay for relieving a great deal of stress.
Creating an operating agreement
DC doesn’t require a written operating agreement. Under DC law, it can be written, oral or implied, and it isn’t filed with the District. However, many banks ask for a written one when you open a business account, so it’s a good idea to create a DC LLC operating agreement and keep it on file internally.
You can use a lawyer or a registered agent to create an operating agreement, or you can do it yourself. If you take the DIY approach, it will cost nothing, but beware that it is an exacting document. If you use a lawyer, the cost can be up to $1,000.
Register with the Office of Tax & Revenue
Any LLC that wishes to operate in DC must register with the Office of Tax & Revenue. While there is no charge for this, you must fill out FR-500 using either your federally issued EIN (employer identification number) or your social security number.
Other annual and additional DC LLC Costs
Overall, setting up an LLC in the District of Columbia is fairly affordable. However, there are a few items on the LLC DC cost list of which you should be aware.
Unincorporated Business Franchise Tax
Unless your LLC is taxed as a corporation, DC charges the Unincorporated Business Franchise Tax if your LLC’s gross receipts are over $12,000. To calculate your tax, you multiply your net income by .0825 (equivalent to 8.25% of your income).
However, it’s not a straight income tax, but rather a franchise tax. This means there is a minimum rate you must pay, as follows:
- If your gross receipts do not exceed $1 million, then you pay $250 minimum in tax
- If your gross receipts do exceed $1 million, then you pay $1,000 minimum in tax
Businesses where more than 80% of gross income comes from the members’ personal services (and capital isn’t a material income-producing factor) are exempt. LLCs taxed as corporations pay the DC corporate franchise tax instead.
Business licenses and permits
The business licenses and permits you need, and what they cost, vary widely depending on your business. You may need:
- A professional license
- A liquor or food handling license
- Permits to rent in a certain building or zone
- Permits for signage
The best way to determine what you need is to check with your professional organization or speak with a knowledgeable registered agent.
Annual report
Whereas many states require an annual report to impart information on the standing of their LLC (including about the owners, the income, and the business activities), DC only requires you to submit one every 2 years.
The report must be submitted by April 1 of the year after the LLC is formed, then every two years after that. The DC biennial report is $300 to file, with a $100 late fee if you miss the deadline.
Note that nonprofit corporations pay an $80 fee for their biennial report.
Certificate of good standing
A certificate of good standing is not required for all businesses, but it is for some, depending on the activities you’re planning. This can include:
- Opening a bank account for your business
- Buying insurance
- Getting a loan
- Selling, transferring, or expanding your business
… and a number of other activities. As such, it’s almost certainly a necessity for those operating a business in DC. The cost is $50 and can be completed online in just a few minutes.
What expenses you can write off
The good news is that many LLC formation costs are deductible on your federal taxes. These include filing your articles of organization, DBA fees, costs associated with operating agreements and registered agents, and so forth.
You can often also deduct:
- Self-employment tax preparation expenses: if you employ yourself, you’re often able to write off tax prep costs.
- Accounting and legal fees: legal fees are deductible if they are “ordinary and necessary” for the business, while accounting fees usually qualify as well.
- Registered agent costs: typically, a registered agent service is a tax-deductible cost as well.
- Reinstatement or amendment fees: if at any time you let your LLC fees and paperwork lapse, you may need to pay an additional cost to reinstate it with the DC government. Reinstatement costs $300, and amending your business name or information costs $220.
DC LLC state fees
The following fees are taken from the DC’s Department of Licensing and Consumer Protection site:
| Item | Cost |
|---|---|
| Domestic LLCs | |
| Certificate of organization | $99.00 |
| Amendment or restatement of certificate of organization | $220.00 |
| Documents or other filings related to signing and filing pursuant to judicial order | $220.00 |
| Certificate of series of members, managers, or interests of limited liability company | $220.00 |
| Statement of authority | $220.00 |
| Statement of denial | $220.00 |
| Statement of dissolution | $220.00 |
| Filings required for merger | $220.00 |
| Filings required for domestication | $220.00 |
| Reservation or transfer of name | $50.00 |
| Reinstatement after administrative dissolution | $300.00 |
| Statement of merger | $220.00 |
| Amendment or abandonment of statement of merger | $220.00 |
| Statement of interest exchange | $220.00 |
| Amendment or abandonment of statement of interest exchange | $220.00 |
| Domestic & Foreign LLCs | |
| Certificate of good standing or status certificates | $50.00 |
| Certified copy of filing | $50.00 |
| Biennial report | $300.00 |
| Biennial report late fee | $100.00 |
| Change of registered agent by entity | $50.00 |
| Change of name or address by noncommercial registered agent | $50.00 |
| Foreign LLCs | |
| Registration of name or its renewal | $200.00 |
| Foreign registration statement | $220.00 |
| Amendment of foreign registration statement | $220.00 |
| Withdrawal of registration of registered foreign entity | $220.00 |
| Withdrawal on dissolution or conversion to non-filing entity | $220.00 |
| Termination of registration reinstatement | $300.00 |
| Transfer of registration | $220.00 |
| Expedited Processing | |
| Same day service | $100 |
| 3 day service | $50 |
Conclusion
While establishing an LLC in DC isn’t cheap, per se, it’s absolutely doable if you … well, know what you’re doing. Budget accordingly, get help where you need it, and good luck with your new venture!
FAQ
The filing fee for the Articles of Organization is $99. This is the required cost to officially register your LLC with the DC Department of Licensing and Consumer Protection.
Yes. Most LLCs in Washington, DC are required to obtain a basic business license. A 2-year general business license costs $99 ($49 for 6 months or $198 for 4 years). The exact cost depends on your business type.
Yes. DC requires LLCs to file a biennial report every two years. The filing fee is $300, and there’s a $100 penalty if it’s late.
Optional costs may include reserving your LLC name ($50), filing a DBA or trade name ($55, valid 2 years), or hiring a registered agent ($50–$300 per year).
Yes. Unless taxed as a corporation, DC LLCs with gross receipts over $12,000 generally pay the Unincorporated Business Franchise Tax of 8.25% of net income, with a minimum of $250 ($1,000 if DC gross receipts are over $1 million). Businesses earning more than 80% of income from the members’ personal services may be exempt.