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Every step to open an LLC in District of Columbia and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Department of Licensing and Consumer Protection (DLCP) · Office of Tax and Revenue (OTR) · Department of Employment Services (DOES) · Office of Paid Family Leave · Office of the Attorney General (new hire reporting).
This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.
Customize this checklistPopular District of Columbia business types:
Do this first. The state tax and payroll accounts ask for your registration details.
Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.
This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.
Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.
Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.
If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.
File Articles of Organization (or the state's equivalent) online through DLCP Corporations Division (CorpOnline / DC Business Portal).
Changing your registered agent costs $50.
Trade names are registered with DLCP (attach the Certificate of Trade Name Registration when registering for tax).
Corporation articles cost $99 for up to $100,000 of authorized capital, and more for larger amounts (up to $1,650). Most businesses also need a DC Basic Business License from DLCP after registering for tax.
After registering with DLCP and OTR, most businesses need a DC Basic Business License. A General Business License costs $99 for 2 years.
Register for withholding, sales and other business taxes by filing Form FR-500 on MyTax.DC.gov. Register with DLCP first if required, then file the FR-500, then return to DLCP for your business license.
DC is a single jurisdiction with no separate county or city taxes. Most businesses need a Basic Business License from DLCP; a General Business License is $99 for 2 years ($49 for 6 months, $198 for 4 years).
Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.
District of Columbia calls it a Certificate of Registration (Sales and Use Tax). Register with the DC Office of Tax and Revenue (OTR) through MyTax.DC.gov (Form FR-500) before you make your first taxable sale in District of Columbia. You'll collect tax from customers and send it to the state.
Give your supplier OTR-368, Certificate of Resale so you don't pay tax on inventory you'll resell. The buyer requests it from OTR on MyTax.DC.gov; it is good for one year, must show an expiration date, and must show the buyer's DC sales tax registration number. Keep certificates your own customers give you, too.
Out-of-state sellers must register once sales into District of Columbia pass $100,000 or 200 transactions (previous or current calendar year), even with no office here.
Special rates apply: 10% on restaurant meals, 15.95% on hotel stays, and 18% on parking. The general rate stays 6% through September 30, 2027, then rises to 7% on October 1, 2027 (postponed from 2026).
Applies once you pay W-2 employees who work in this state.
Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.
Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.
Register once you pay wages to employees working in Washington, DC. Reports and payments are usually quarterly.
DC Paid Family Leave (Universal Paid Leave) is paid entirely by employers at 0.75% of covered employees' wages, the rate in effect since July 1, 2024. Nothing may be deducted from employee pay.
Required at 1 or more employees. Cover all employees working in DC. Domestic workers are covered once they reach 240 hours in a quarter. Uninsured employers face fines up to $10,000, and corporate officers can be personally liable. Post Form 1 DCWC and report injuries on Form 8 DCWC within 10 working days.
Report online at dc-newhire.com (needs an FEIN).
DC does not tax nonresidents' wages. Employees who live outside DC (for example, in Maryland or Virginia) file Form D-4A with the employer so no DC income tax is withheld; withhold for their home state instead.
Washington, DC's wage payment rules:
$18.40 an hour.
All employers must provide paid sick and safe leave. Accrual and caps depend on employer size.
No operating DC-run retirement savings mandate was confirmed.
Washington, DC doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.
Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.
Most DC workers live in Maryland or Virginia. Have them file Form D-4A so you do not withhold DC tax, and register to withhold for their home state.
DC Paid Family Leave is an employer-paid tax on wages. It cannot be deducted from employee pay.
The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.
File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).
Recurring deadlines. Put these on your calendar now.
FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.
Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.
File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.
Monthly if tax is $1,201 or more per period (and always for remote sellers and facilitators), quarterly for $201 to $1,200, annual for $200 or less. Monthly and quarterly returns are due the 20th of the next month; annual returns are due October 20. File a zero return if you had no sales; skipping it can bring penalties.
Recurring dates for Washington, DC and federal filings. A payroll service handles most payroll lines, but you should know they're happening.
| When | What | Filed with |
|---|---|---|
| Apr 1 | Biennial report due every 2 years ($300) | Washington, DC |
| Jul 1 | Minimum and tipped wages adjust | Washington, DC |
| Quarterly (end of month after quarter) | UI wage report and Paid Family Leave contributions due in DOES ESSP | Washington, DC |
| Assigned schedule | Sales tax return (file a zero return if no sales) | Washington, DC |
| Jan 31 | W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941 | IRS / SSA |
| Jan 31 | 1099-NEC to contractors and IRS | IRS |
| 15th monthly | Federal payroll tax deposit (monthly depositors) | IRS |
| Apr 30 · Jul 31 · Oct 31 | Form 941 for the quarter | IRS |
| Jul 31 | Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension) | DOL (EFAST2) |
Last verified: October 27, 2026
The District of Columbia state filing fee for an LLC is $99. That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.
You need to register to collect sales tax in District of Columbia if you sell taxable products or services there. The state rate is 6%, and local taxes may add to it. Registration cost: Free.
Out-of-state sellers must register once their sales into District of Columbia pass $100,000 or 200 sales a year. Having an employee or office in District of Columbia also creates nexus right away.
Recurring filings include: file the Biennial Report; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.
This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.
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