Starting an LLC in the District of Columbia costs about $420 at the hard floor in year one: $99 to file the Articles of Organization, $70 and up for a Basic Business License, and a $250 minimum franchise tax owed the following April. Add a registered agent service, an operating agreement, and any industry-specific license endorsements, and most new owners spend somewhere between $500 and $1,000 before their first anniversary. After that, a $300 biennial report and the $250 franchise tax minimum are the recurring government costs that keep the LLC alive.
The $99 Articles of Organization Filing
Your LLC legally exists once the Department of Licensing and Consumer Protection accepts Form DLC-1, the Articles of Organization.1District of Columbia Government – DLCP. Instruction Sheet for Articles of Organization for Domestic Limited Liability Company (LLC) Form DLC-1 The filing fee is $99.2Department of Licensing and Consumer Protection. Corporations Division Fees – Limited Liability Company You can file through the CorpOnline portal with a credit card or mail the form with a check.
Standard online processing runs about five business days. If you need the LLC sooner, the District charges $50 for three-day processing and $100 for same-day (by the end of the next business day), added to the $99 base.3Department of Licensing and Consumer Protection. Corporations Division Business Registration FAQs
Basic Business License
Before your LLC can legally operate, it needs a Basic Business License from the DLCP.4Department of Licensing and Consumer Protection. Steps to Obtaining a Basic Business License This is a separate step from forming the LLC and a separate charge. The base fee is $70, plus $25 per endorsement category, plus an industry-specific fee for each endorsement that can run from under $50 to well over $1,000 depending on what your business does. A consulting LLC pays very little. A business needing environmental or entertainment endorsements pays substantially more. The license is valid for two years.5Department of Licensing and Consumer Protection. Business Licensing Division
One prerequisite trips people up. The District will not issue a BBL until you produce a Certificate of Clean Hands from the Office of Tax and Revenue showing you don’t owe DC more than $100 in taxes, fees, or fines. The certificate itself is free through MyTax.DC.gov, but any unresolved DC debt stalls your license.6Office of Tax and Revenue. Certificate of Clean Hands
The $250 Franchise Tax Minimum
This is the cost most new owners don’t see coming. DC treats LLCs as unincorporated businesses subject to a franchise tax filed on Form D-30 at a rate of 8.25% of DC taxable income.7Office of Tax and Revenue. DC Business Franchise Tax Rates Even if your LLC loses money, you still owe a minimum:
- $250 if your DC gross receipts are $1 million or less
- $1,000 if your DC gross receipts exceed $1 million
Most new LLCs land in the $250 bracket. The return is due April 15 for calendar-year filers, and the minimum applies even in a partial first year of operation.8Office of Tax and Revenue. D-30 Unincorporated Business Franchise Tax Return Instructions Budget for it from day one.
Registered Agent
Every DC LLC must designate a registered agent with a physical address in the District to receive legal documents and official notices.9D.C. Law Library. District of Columbia Code Section 29-104.04 You have three options, and each carries a different cost.
You can serve as your own agent at no cost if you have a DC street address, though your name and address become public record and you must be available there during business hours. You can appoint another member or employee at no cost. Or you can hire a commercial service, which typically runs $50 to $200 per year depending on whether it bundles mail forwarding or compliance reminders.
Operating Agreement
The District does not require you to file an operating agreement with the government, and this is not a government fee. It still belongs in your budget. The agreement governs how profits get split, how decisions get made, and what happens when a member leaves. Without one, DC’s default statutory rules fill the gaps, and those rarely reflect what the members actually intended.
A single-member LLC can often use a low-cost or free template. Multi-member LLCs with different ownership percentages, capital contributions, or management structures usually benefit from a custom draft. Attorney-drafted agreements run roughly $400 to $1,000 for single-member and $800 to $5,000 for multi-member, depending on complexity.
$300 Biennial Report
After formation, the main recurring filing is the biennial report, which updates the District on your registered agent, principal address, and ownership.10D.C. Law Library. District of Columbia Code 29-102.11 – Biennial Report for Mayor The fee is $300 every two years. Your first report is due by April 1 of the year following formation.2Department of Licensing and Consumer Protection. Corporations Division Fees – Limited Liability Company
Miss the deadline and the late fee is $100 on top of the $300. Ignore it entirely and the District can administratively dissolve your LLC. Reinstatement requires filing every missed report, reappointing a registered agent if yours lapsed, and paying all back fees and penalties.11Department of Licensing and Consumer Protection. Reinstatement of Domestic Filing Entity Form GN-5 Filing on time is dramatically cheaper.
Free and Low-Cost Registrations
Your federal Employer Identification Number from the IRS is free and issued immediately through the online application. The IRS limits each responsible party to one EIN application per day, which matters if you’re forming multiple entities.12Internal Revenue Service. Get an Employer Identification Number
DC tax registration through Form FR-500 on MyTax.DC.gov is also free. It activates your DC tax accounts and is a prerequisite for the Basic Business License and for opening a business bank account.13Office of Tax and Revenue. New Business Registration
If your LLC will operate under a name different from its registered legal name, a trade name registration with the DLCP costs $55.14Department of Licensing and Consumer Protection. Corporations Division Fees – Trade Name Filing Note that this is a DC registration, not trademark protection.
What You Do Not Owe: BOI Reporting
If you’ve read about the federal Beneficial Ownership Information reporting requirement under the Corporate Transparency Act, it no longer applies to DC-formed LLCs. As of March 2025, FinCEN exempted all U.S.-formed entities, leaving only companies formed under foreign law and registered to do business in the U.S. subject to the filing.15FinCEN.gov. Beneficial Ownership Information Reporting An LLC formed in DC has no BOI obligation and no related fee.
First-Year Cost Summary
- Articles of Organization: $99 (required)
- Basic Business License: $70 base plus $25 per endorsement plus industry-specific endorsement fees (required)
- Certificate of Clean Hands: $0 (required for the BBL)
- FR-500 DC tax registration: $0 (required)
- EIN from the IRS: $0 (required)
- DC franchise tax minimum: $250 (due April 15 of the following year)
- Biennial report: $300 every two years, first due April 1 of the year after formation
- Registered agent: $0 to $200 per year
- Operating agreement: $0 to $5,000, depending on complexity
- Expedited filing: $50 or $100 (optional)
- Trade name registration: $55 (only if operating under a different name)
The absolute floor for a DC LLC with no professional help is roughly $420 in year one: $99 for formation, $70-plus for the BBL, and $250 for the franchise tax minimum. Most owners land higher once a registered agent, a proper operating agreement, and industry endorsement fees enter the picture.