Starting a Business in DC Checklist
Check business name availability with the Department of Consumer and Regulatory AffairsCheck online to see if your business name is available. You will need to create an account and log in to search business names: https://corp.dcra.dc.gov/Account.aspx/LogOn?ReturnUrl=%2fHome.aspx LLC names require the words “limited liability company” or “limited company” or the abbreviation “L.L.C.”, “LLC”, “L.C.”, or “LC” Corporation names require corporation”, “incorporated”, “company”, or “limited”, or the abbreviation “Corp.”, “Inc.”, “Co.”, or “Ltd.”, or similar words or abbreviations in another language. Department of Consumer and
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File papers to create my businessYou can form your DC corporation or DC LLC by filing online at https://corp.dcra.dc.gov/Account.aspx/LogOn?ReturnUrl=%2fHome.aspx. You can file a paper form, but filing online is quick and easy. The filing fee is $220 to form a DC corporation or LLC. The DCRA Corporations Division will take up to 2 weeks to process your articles of incorporation or organization. If you would like expedited processing, you can pay $50 to have your articles filed in 3 days, or $100 for same day filing. If you hand deliver your articles to the DCRA, the expedited service fee is mandatory. You can incorporate in the District of Columbia with Northwest Registered Agent if you don’t want to do the filing yourself. DCRA Corporations DivisionDepartment of Consumer and Regulatory Affairs |
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Register with the Department of RevenueFile a Combined Business Tax Registration Application, FR-500 form with the DC Office of Tax and Revenue. You can send them the paper form or you can register online at https://www.taxpayerservicecenter.com/fr500/. Sales Tax:The District of Columbia sales tax rate is currently 5.75%. Income Tax:Individual Income tax rates range from 4% to 8.95%. The DC corporate franchise tax rate is 9.975% of taxable income. There is a minimum payment of $250 if your gross receipts are $1 million or less. The minimum is $1000 if your gross receipts exceed $1 million. DC Office of Tax and RevenueOffice of Tax and Revenue |
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Get a DC business licenseAlmost all DC businesses will need a business license from the DCRA. And some business activities will require additional endorsements on the DC Basic Business License. Your fees will depend on the type of business you have. Also, there is an exception to the business license requirement for licensed professionals, but you have to apply to the DCRA for an exemption. You can now apply for a DC Basic business license online at https://cpms.dcra.dc.gov/OSUBI/Default.aspx. You also have the option of filling out the paper application form and mailing it in or dropping it off. Any other registration requirements? Getting your DC business license requires jumping through a lot of hoops. Before you apply, you need to:
If you are applying for an special endorsed license, you may have to meet additional requirements. Make sure you check on your specific license. The DCRA has an online directory http://dcra.dc.gov/node/514522 of business license endorsement categories. Click on the category type to see the licenses and their requirements. Once you have all the necessary licenses and permits, it is time to start doing business in DC! DCRA Business License OfficeDCRA P: (202) 442-4400 |
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Collect and Charge Sales TaxDo I need to collect Washington DC sales tax?You need to collect sales tax if you sell, deliver, or furnish goods in the District of Columbia. What is the Washington DC sales tax rate?The DC sales tax rate is 5.75%. How much does a Washington DC sales tax license cost?No fee How do I register for DC sales tax?File a Combined Business Tax Registration Application with the DC Office of Tax and Revenue. You can mail the paper form or you can register online at https://www.taxpayerservicecenter.com/fr500/. If you prefer to file the paper form, printable applications are available on the Office of Tax and Revenue website. DC Office of Tax and RevenueDC Office of Tax and Revenue |
