How to Start Your LLC in Washington DC
Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!
Quick Summary:
- Filing Fee: $99
- Turnaround time: 5 business days
How do I start an LLC in Washington DC?
Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.
If you want to check the name availability for Washington DC, visit https://corponline.dcra.dc.gov/Home.aspx/Landing.
After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.
What are the costs & processing times of starting a business in Washington DC?
Here's the rundown for Washington DC:
- The filing fee is: $99
- There are ongoing fees of $300 (every 2 years)
- It usually takes 5 business days if you're filing online or 2-4 weeks (plus mail time) if by mail.
Why Washington DC is a great state for your LLC
Starting a company in Washington DC offers several compelling advantages that cater to both startups and established businesses. Here are some key benefits:
- Access to Funding: Entrepreneurs can tap into the Washington Area Community Investment Fund (WACIF), which provides crucial funding and expertise to new businesses. This nonprofit organization focuses on helping local entrepreneurs and community organizations succeed.
- Simplified Business Structure: Establishing a Limited Liability Company (LLC) in Washington, D.C. is typically straightforward and efficient. This business structure is favorable for startups and small to medium-sized businesses due to its flexible management and fewer regulatory burdens.
- Asset Protection: Forming an LLC allows entrepreneurs to protect their personal assets from business liabilities and debts. This separation can provide peace of mind and encourage business growth without the risk to personal finances.
- Ease of Compliance: LLCs in Washington, D.C. come with manageable regulations, making it easier for business owners to create, manage, and remain compliant with legal requirements.
- Tax Advantages: Washington, D.C. provides options for tax treatment that may benefit LLCs, simplifying tax filing processes and potentially reducing tax burdens.
- Affordability: The cost to file for an LLC in Washington, D.C. is relatively low at $220, making it accessible for entrepreneurs focused on budget management.
These advantages combine to create a supportive environment for starting and growing a business in the nation’s capital, making Washington D.C. an attractive location for entrepreneurs.
Legal Requirements
Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for Washington DC:
Articles of Organization
A certificate of organization must include:1. The name of the LLC;
- The street and mailing addresses of the initial principal office and the name and street and information required by D.C. Code § 29-104.04; and
- If the company will have one or more series that is treated as a separate entity which limits the debts, obligations, and other liabilities to the assets of a particular series as provided in the operating agreement, a statement to that effect.
D.C. Code § 29-802.01
Filing fee: $99
Filing Process
After you've prepared the initial formation documents, you need to file it! Here is what Washington DC laws require for filing:
A document required or permitted to be filed with the mayor must:1. Be physically delivered in written form unless and to the extent the mayor permits electronic delivery;
- Be in English and numbers must be in Arabic or Roman numerals, but the name of the entity need not be in English if written in English letters or Arabic or Roman numerals;
- Be signed by or on behalf of a person authorized or required to sign the filing;
- State the name and capacity, if any, of each individual who signed it, but need not contain a seal, attestation, acknowledgment, or verification; and
- Be accompanied by any required fee, tax, or penalty.
- For entity registration filings made on or after January 1, 2020, the filing shall state the names, residence and business addresses of each person whose aggregate share of direct or indirect, legal or beneficial ownership of a governance or total distributional interest of the entity: (A) Exceeds 10%; or (B) Does not exceed 10%; provided, that the person: (i) Controls the financial or operational decisions of the entity; or (ii) Has the ability to direct the day-to-day operations of the entity.
D.C. Code § 29-102.01
The mayor may require that a cover sheet for an entity filing and a biennial report, and any filing by a foreign entity, be on a form prescribed by the mayor.
D.C. Code § 29-102.02
Additional Legal Considerations
Here are some additional relevant laws that might be useful when operating your business in Washington DC:
Operating Agreement
D.C. Code § 29-801.07
Operating agreement–effect on LLC and persons becoming members; preformation agreement
D.C. Code § 29-801.08
Operating agreement–effect on third parties and relationship to records effective on behalf of LLC
D.C. Code § 29-801.09
Certificate of good standing or registration
D.C. Code § 29-102.08
Biennial report for mayor
D.C. Code § 29-102.11
Series LLC Provisions
D.C. Code § 29-802.06