Starting a business in the nation’s capital? One of the most essential steps to take is making your business legal. Another important step is calculating start-up costs, which include the cost of a business license.
But first off, what is a business license and how much does a business license cost?
The term business license is used for any licenses, certifications, or permits you’ll need to provide a service, sell a product, and run your start-up in Washington, DC.
The most common type of license is the Basic Business License (BBL), which is the one most start-ups need. DC requires this license for any business activity, allowing you to legally operate in the district. There are different types of licenses depending on the types of services, activities, or products you sell.
Do you need a business license in Washington, DC?
Absolutely. A DC business license is needed for almost every business operating in the nation’s capital. The District considers a “business” as any trade, profession, or activity that provides goods or services to the general public. That means it doesn’t matter if your business is home-based, a brick-and-mortar shop, or you’re providing professional services.
Here’s what makes DC unique: DC is both a city and basically a state, so there is no separate state-level licensing. Everything goes through DC government agencies. The good thing is that the licensing has been simplified with the Basic Business License system, avoiding a lot of red tape.
DC’s “Clean Hands” requirement means you cannot owe more than $1,000 to the DC government to get or renew your license. This includes unpaid parking tickets, taxes, or other fines. If you’re selling products, you’ll need Sales and Use Tax Registration with the DC Office of Tax and Revenue. The best part? It’s free.
How much does a business license cost in Washington, DC?
The Basic Business License is $49 for six months, $99 for two years, or $198 for four years. Most businesses choose the two-year license because it balances cost and convenience. Now, you may need additional licenses or a different one based on the following:
Business type and industry: A consulting business may only need the basic license, but a restaurant may need multiple permits with separate fees.
Location: Working from home means you need an expedited Home Occupation Permit or a standard Home Occupation Permit. Commercial locations also need a Certificate of Occupancy.
Additional endorsements: Each extra endorsement for different business activities costs $25.
Professional requirements: Licensed professionals like accountants, therapists, or real estate agents pay separate professional licensing costs.
Types of business licenses in Washington, DC and their costs
Basic Business License (BBL)
This is the most common and widely used. Costs are:
- $49 for 6 months
- $99 for 2 years
- $198 for 4 years
General business license
A general business license is needed for businesses that have a tax ID that doesn’t need specialized endorsements. Issued every two years, the fee is $200. This is needed for retail and office-based businesses.
Additional endorsements
Each additional endorsement is $25 per endorsement. Make sure you have money set aside, because if you have multiple businesses run from the same location, things could get costly.
Professional and occupational licenses
There are specific licenses for regulated professions. These professional license fees range from $100 to over $800, depending on occupation:
Licensed Professional Counselors, Marriage and Family Therapists, and Addiction Counselors pay $145 every two years.
Real estate professionals pay $130 every two years.
CPAs and other accounting professionals also have two-year renewals.
Verify your professional licensing fees and requirements through the licensing board at the DC Department of Licensing and Consumer Protection.
Industry-specific licenses
Businesses in certain industries need specialized licenses with their own fee structures.
Restaurants and Food Service
Restaurant licenses are based on seating capacity:
- 1-10 seats: $599.50
- 11-50 seats: $722.70
- 51-100 seats: $844.80
- 100+ seats: $968.00
Construction and Contracting
General Contractors and Construction Managers also need a specialized license. These licenses are for two years and have a fee of $500.
Liquor Licenses
These are the most expensive licenses. They range from 1,000 to over $10,000, depending on the license class and establishment size. The regulatory agency and costs for your specific business can be found by visiting the DC Business Center or contacting the Department of Licensing and Consumer Protection.
Business license cost comparison
| License Type | Cost | Duration |
|---|---|---|
| Basic Business License | $49 / $99 / $198 | 6 months / 2 years / 4 years |
| General Business License | $200 | 2 years |
| Each Additional Endorsement | $25 | Per endorsement |
| Restaurant (1–10 seats) | $599.50 | 2 years |
| Restaurant (100+ seats) | $968.80 | 2 years |
| General Contractor | $500 | 2 years |
| Professional Counselor | $145 | 2 years |
| Real Estate Salesperson | $130 | 2 years |
| Liquor License | $1,000 – $10,000 | Varies |
Examples of different industries and the licenses they require in Washington, DC
Washington, DC requires businesses to have specific licenses depending on their industry.
Retail businesses
Retail shops need a Basic Business License and usually a General Business License. If the products being sold have sales tax, you’ll also need a Sales and Use Tax Registration (free). Additionally, physical locations require a Certificate of Occupancy for your commercial space.
Restaurants and food service
Food businesses have some very complex requirements. You’ll need:
- A restaurant license based on seating capacity
- A food establishment license from DC Health
- Health permits and inspections
- Food manager certification
- A liquor license (if serving alcohol)
Home-based businesses
Working from home doesn’t exclude you from needing a business license. Home-based businesses need an expedited Home Occupation Permit (eHOP) when applying online, or a standard Home Occupation Permit, plus the Basic Business License. Many people starting home businesses appreciate that DC has streamlined the home permit process.
Professional services
Doctors, lawyers, accountants, real estate agents, therapists, architects, and other licensed professionals need a professional license from the DC board and a Basic Business License.
Some licensed professionals may be exempt from having to obtain the General Business License, but before purchasing, verify whether it is needed.
Industries that usually require professional licenses include:
- Healthcare providers (doctors, nurses, therapists)
- Legal professionals
- Accounting and finance professionals
- Real estate agents and brokers
- Architects and engineers
- Barbers and cosmetologists
Contractors and construction
General contractors and construction managers need a specialized license. The fee is $500 for two years. Electrical, plumbing, or HVAC work requires additional licenses from DC’s Board of Industrial Trades.
Online and E-commerce Businesses
If you sell online, you still need a license in DC. The process is the same, whether online or operating a storefront.
Conclusion
Starting a business in Washington, DC comes with clear licensing requirements, and understanding them upfront can save you time, money, and compliance issues down the road. While most businesses will need a Basic Business License, your total cost depends on your industry, location, and whether additional endorsements or professional licenses are required.
Before you apply for any DC business license, make sure your business is legally formed. If you plan to operate as a limited liability company, understanding how to get an LLC in Washington, DC is a critical first step, since your entity formation affects the licenses, permits, and tax registrations you’ll need.
By forming your LLC first and then applying for the correct licenses through DC’s streamlined system, you can focus on launching and growing your business with confidence—knowing you’re fully compliant from day one.
FAQ
The processing times vary depending on business type, but it should take a few weeks. Complex licenses requiring inspections or additional approvals could take several weeks.
You can renew your license up to 90 days before it expires via the online portal. You will receive a 90, 60, 30, and 7 day email reminder.
Yes. In most cases it doesn’t matter if you’re online or working from home, you need a Basic Business License. You may also need a Home Occupation Permit.
Visit the My DC Business Center, complete the online application, and pay the fee. You can also visit in person. Make sure you have all the required information.
Yes.
No. Food trucks require several specialized permits beyond the Basic Business License. You’ll need a mobile food vendor license, health permits from DC Health, food manager certification, and maybe a few additional endorsements.