How to Register a Business in DC: Formation, EIN, and Licensing

To register a business in DC, you file formation documents with the Department of Licensing and Consumer Protection (DLCP), get a federal EIN, register for District taxes using Form FR-500, obtain zoning approval for your location, and then apply for a Basic Business License before you start operating. The core entity filing costs $99 for most LLCs and corporations, but the full sequence involves several agencies and additional fees. Getting the order right matters, because each step depends on the one before it.

Pick Your Business Structure First

Your entity type decides which form you file, what you pay in ongoing taxes, and how you’re taxed on profits. D.C. Code Title 29 governs business entities, and the Corporations Division accepts LLCs, for-profit corporations, professional corporations, nonprofits, limited partnerships, and limited liability partnerships.¹ Most small businesses in DC choose the LLC for its flexibility, but the right fit depends on how you plan to raise capital, split profits, and run operations.

One tax point worth knowing up front: DC imposes an unincorporated business franchise tax on LLCs, sole proprietorships, and partnerships with gross receipts over $12,000. The minimum tax is $250 if your DC gross receipts are $1 million or less, and $1,000 above that.² Corporations pay a separate corporate franchise tax instead.

File Your Formation Documents With DLCP

This is the step that legally creates your business. Before you file, lock down three things: a compliant name, a registered agent, and the right form for your entity type.

Name Requirements

Your entity’s name has to signal its legal structure. An LLC’s name must contain “limited liability company,” “limited company,” or an abbreviation like “LLC” or “L.L.C.”³ A corporation must include “corporation,” “incorporated,” “company,” or “limited” (or abbreviations like “Corp.” or “Inc.”). Professional entities use suffixes like “PLLC.”

The name also has to be distinguishable from any entity or trade name already on file with the Corporations Division.¹ Search the DLCP database before you file. If the name you want is available but you’re not ready to form, Form GN-3 reserves it for 120 days.⁴

Registered Agent

Every DC entity needs a registered agent to accept legal documents and government notices. Under D.C. Code § 29–104.04, the formation filing must list either a commercial registered agent or the name and address of a noncommercial agent in the District.⁵ The agent needs a physical DC address where process can be served, so a P.O. box won’t work. You can be your own agent if you have a DC address, or you can hire a commercial service.

The Right Form

LLCs file Form DLC-1 (Articles of Organization). You’ll provide the LLC’s name, principal office address, registered agent information, a statement that the LLC has at least one member, and the names and addresses of anyone holding more than a 10 percent ownership interest or controlling operations.³

Corporations file Form DBU-1 (Articles of Incorporation).⁶ Other entity types have designated forms: DNP-1 for nonprofits, DLP-1 for limited partnerships, and DPR-1 for professional corporations.¹ File through the CorpOnline portal on the DLCP website, or mail to the Corporations Division.⁷

Fees and Processing

The filing fee for a domestic LLC’s articles of organization is $99.⁸ A domestic business corporation’s articles of incorporation is also $99 when the authorized capital is $100,000 or less; corporations with higher authorized capital pay more.⁹

If you need faster turnaround, the Corporations Division offers expedited service:

Three-day service: $50 on top of the standard filing fee.
Same-day service: $100 on top of the standard filing fee.

Expedited service is required for all walk-in customers at the Business License Center.⁷ Once approved, you get a Certificate of Organization (for LLCs) or Certificate of Incorporation (for corporations). Save it. You’ll need it for bank accounts, leases, and later licensing applications.

Get a Federal EIN

You need a Federal Employer Identification Number from the IRS before you can register for DC taxes or open a business bank account. Apply at irs.gov; it’s free and issued immediately online.¹⁰ Even single-member LLCs with no employees should get one, since the DC tax registration step requires it.

Register for DC Taxes (Form FR-500)

Once your entity exists and you have an EIN, register with the Office of Tax and Revenue by filing Form FR-500.¹¹ This one form sets up your accounts for income tax, sales tax, withholding tax, and other DC taxes that apply. You’ll receive a Notice of Business Tax Registration confirming the District recognizes your tax obligations.

This is a separate step from your entity formation at DLCP and separate from your federal EIN. New business owners often assume one filing covers everything; it doesn’t. The FR-500 also registers you with the Department of Employment Services for unemployment insurance.¹²

Get Zoning Clearance for Your Location

Before DLCP will issue a Basic Business License, you need zoning approval for where you operate. The right document depends on your setup:

Commercial location: a Certificate of Occupancy from the Department of Buildings.¹³
Home-based consultant, writer, salesperson, or similar independent role: an Expedited Home Occupation Permit (eHOP), which you can obtain during the Basic Business License application itself.
Any other home-based business: a standard Home Occupation Permit before applying for the license.

If your business isn’t physically located in DC, you don’t need a Certificate of Occupancy or Home Occupation Permit at all.¹³ That matters if you serve DC customers from Maryland or Virginia.

Apply for a Basic Business License

Anyone engaging in business activity in the District must be licensed according to their specific activity.¹⁴ The Basic Business License is categorized by endorsement based on what you sell or provide. Apply through the My DC Business Center portal, which is a different system from the CorpOnline portal used for entity formation.¹⁵

As part of the application, you must certify under the Clean Hands requirement that you don’t owe more than $1,000 to the District in overdue fees, fines, taxes, or penalties, with a five-year lookback. Traffic tickets, littering fines, and unpaid child support aren’t included.¹⁶ If you’re over the threshold, you’ll need to settle those debts before the District issues a license.¹⁷ License fees vary by category and endorsement. Don’t start transacting business before this step is complete; operating without a valid license can result in civil fines or forced closure.

Extra Steps If You’ll Have Employees

Hiring in DC adds two requirements. Any employer with one or more employees must carry workers’ compensation insurance.¹⁸ There’s no minimum headcount exemption; a single employee triggers it. You must also register with the Department of Employment Services through its Employer Self-Service Portal to establish your unemployment insurance account.¹² Penalties for missing either requirement can far exceed what the coverage itself would have cost.

If Your Business Is Already Formed in Another State

You don’t form a new entity. You file a Foreign Registration Statement using Form FN-1 with the Corporations Division.¹⁹ You’ll need:

Your name as it appears in your home state, entity type, state and date of formation, and address in your state of formation.
A registered agent with a DC address, same as a domestic entity.
An original Certificate of Good Standing from your home state, no more than 90 days old.
Names and addresses of anyone holding more than 10 percent ownership or controlling operations.

The Foreign Registration Statement gives your entity authority to do business in DC, but it does not replace the FR-500 tax registration or the Basic Business License requirements. If your entity was already transacting in DC before registering, you may owe back reports and fees; contact the Corporations Division for the exact amounts.

Staying Registered: Biennial Reports

Forming your entity isn’t the end of your dealings with the Corporations Division. Every DC business entity must file a biennial report by April 1st on either even-numbered or odd-numbered years, depending on when it was formed. The report updates the District on your current officers, registered agent, and principal address. For LLCs, the filing fee is $300. Corporations have their own fee schedule.

Missing the deadline triggers a $50 late fee. If you still haven’t filed within five months after April 1st, the District can administratively dissolve or revoke your entity. Your business then loses its legal existence until you fix it. Reinstatement requires filing Form GN-5, submitting all overdue biennial reports, appointing a current registered agent, and paying every accumulated fee and penalty.²⁰ During any period your entity is dissolved, you cannot legally conduct business or enforce contracts in DC courts.

1
Department of Licensing and Consumer Protection. Corporations Division: Business Registration FAQs
2
Office of Tax and Revenue. DC Business Franchise Tax Rates
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Department of Licensing and Consumer Protection. DLC-1 Articles of Organization for Domestic Limited Liability Company
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District of Columbia Government – Corporations Division. Name Reservation Registration and Transfer Form GN-3
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D.C. Law Library. DC Code 29-104.04 – Designation of Registered Agent
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Department of Licensing and Consumer Protection. DBU-1 Articles of Incorporation of Domestic Business Corporation
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Department of Licensing and Consumer Protection. Fees for Corporate Registration Services
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Department of Licensing and Consumer Protection. Corporations Division Fees – Limited Liability Company
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Department of Licensing and Consumer Protection. Corporations Division Fees – Business Corporation
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Internal Revenue Service. Employer Identification Number
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Office of Tax and Revenue. New Business Registration
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Office of Unemployment Compensation. Employer Service Portal
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Department of Licensing and Consumer Protection. Certificate of Occupancy/Home Occupation Permit Details
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District of Columbia. Business Licensing Division
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Department of Licensing and Consumer Protection. Steps to Obtaining a Basic Business License
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Department of Licensing and Consumer Protection. Tax Registration and Clean Hands Certification Details
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Office of Tax and Revenue. Certificate of Clean Hands
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Department of Employment Services. Office of Workers’ Compensation FAQs
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District of Columbia Government – Corporations Division. Instruction Sheet for Foreign Registration Statement Form FN-1
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Department of Licensing and Consumer Protection. Reinstatement of Domestic Filing Entity