How to Start a Foreign LLC in District of Columbia (Step-by-Step Guide)

If you have an LLC in DC and want to expand your business beyond DC, you must form a foreign LLC. Any business, especially a limited liability company, located in other states, starts its operation in DC, must file a foreign LLC in DC. To do so, every LLC needs to file additional filing documents, along with tax and relevant documents with the DC government.

In this article, you’ll be reading about how to start a foreign LLC in DC. Along with that, the page guides you through the steps involved in managing and maintaining a foreign LLC in DC after you form it.

Forming a Foreign LLC in DC

A foreign LLC does not need to be a company from another country but a business formed under the laws of another state. If you register your LLC in one state and operate your business in DC, you probably need to register your LLC as a foreign entity here. Imagine, if your family owns a sushi restaurant in Alabama and you want to expand the chain somewhere in Texas, you must establish your restaurant in Texas as a foreign entity.

Anyone who has an active and in good standing LLC anywhere (except for DC) and wants to expand their operations in DC can file their LLC as a foreign entity. To start a foreign LLC in DC, you need to register it with the DC Secretary of State. Every state has a different rule for establishing a foreign LLC. Here are the steps to follow in DC for registering a foreign LLC.

Note: These are generic steps to file a foreign LLC in DC. Make sure to check with the State Secretary of State, before you start filing your business. – LLCBuddy Team

Step 1: Get the Certificate of Good Standing From Home State

Before you proceed to register your LLC in DC as a foreign entity, you must get the Certificate of Good Standing issued from your home state SOS. This is an important document to register an LLC in a foreign state.

If your LLC is originally registered in DC, then you must obtain the Certificate of Good Standing from DC Secretary of State. If your LLC is in other states, the name of the same document might be different. Every LLC, registered in any state other than DC must get this document to register a foreign LLC in DC.

Filing Certificate of Good Standing: In the District of Columbia, one has to sign up with the DC Bar to get the Certificate of Good Standing. Those, who are already signed up, must log in to the DC Bar Official Portal to send a request for the certificate.

Step 2: Choose DC Foreign LLC Name

Obtain a name reservation certificate and submit it with your foreign qualification requirements to the DC Secretary of State. Your LLC’s legal name outside of DC will be listed on the application, along with the name it will use in DC. Take note of the requirements for naming your LLC.

You can use the same name as your domestic LLC name, however, that name should be available in DC to use. Check name availability at DC’s business entity names and reserve your LLC name. There are a bunch of LLC naming guidelines in DC when it comes to forming a foreign LLC. Check the guidelines before you name your business.

Step 3: Select DC Foreign LLC Registered Agent

A registered agent is a person responsible for receiving all official and legal documents on behalf of your company, whether it is located domestically or in a foreign state. For a foreign LLC in DC, you must have a registered agent from DC only. No matter where your domestic LLC is located, you must hire a registered agent from DC for your foreign LLC.

You’ll need a registered agent to form a foreign LLC in DC and take note that the DC Registered Agent must have a local address. Here are the best LLC services on our list that will provide you with registered agents to ease your worries:

LLC Service	Our Rating & Pricing	Top Features	Learn More
#1 TOP PICK	5/5 $0 + State Fees	Fastest filing: 1-day processing 4.8/5.0 Trustpilot & A+ BBB scores 700k+ new businesses formed	START LLC NOW
	4.5/5 $39 + State Fees	In-house corporate guides Standalone Registered Agent service DIY packages	Learn More

Step 4: File Application for Registration for DC Foreign LLC

The most important step is to send the application for registration with DC SOS. Download the PDF form from the DC Secretary of State website or file it online (whichever method is available). The form must be filled out with the following details:

LLC’s full legal name.
A fictitious name or a DBA (only if your LLC’s legal name is not available); Attach a statement of adoption of the fictitious name signed by all LLC members.
- DBA filing method in DC: two methods, online and by mail
- Online: For online filing, check the Washington DC Secretary of State. There, look for the “Trade Names” section. You will get the registration form.
- Offline: For filing by mail, you must download the form, and send it to the Department of Licensing and Consumer Protection, Corporations Division, P.O. Box 92300, Washington, DC 20090
- DBA filing fee in DC: $55
LLC’s principal office and mailing addresses
LLC formation state and date.
Registered agent’s name and address in DC.
Date when your LLC will start operations in DC.
Credit card information is on the last page of the form for the application fee.

Online Filing

Not Applicable

Offline Filling

For the offline filing of a foreign LLC in Washington DC, you must get the PDF form. Download the Foreign LLC Registration Form and fill it with the relevant and correct information, save it, and submit it to the DC SOS’ office address: Department of Consumer and Regulatory Affairs, Corporations Division, P.O. Box 92300, Washington, D.C. 20090.

Foreign LLC Registration Fee in DC: To register a foreign LLC in Washington DC, you must pay a $220 processing fee. This fee shall be paid to the SOS at the time of submitting the PDF form’s copies to the SOS office.

The LLC cost in DC, even for foreign LLCs will differ between online filing and by mail. Also, read about what’s the major difference between DC’s domestic and foreign LLCs.

Step 5: Determine How Your DC Foreign LLC is taxed

Foreign LLCs are also subjected to the DC Business Privilege Tax and must file LLC annual reports each year. If you have a single-member foreign LLC then it will be considered as a ‘disregarded LLC’ by IRS. That means the LLC will not be regarded as a company but it will be taxed as an individual (the owner). If you already have an LLC in the home state, you must have obtained the EIN as well. You don’t need to obtain the EIN in DC for a foreign LLC separately as it is issued from the IRS.

For other types of LLCs (member-managed or manager-managed LLCs), it will be a ‘pass-through taxation‘ where the LLCs don’t get taxed separately, instead, the members and managers are taxed based on their personal income. So, foreign LLCs are taxed as same as domestic LLCs in DC. However, it is recommended to check with the DC Secretary of State for state-wise taxes.

Note that forming a foreign LLC would be good for your business as you can legally operate in a different state thus reaching a larger market and opening more opportunities for higher profit.

Filing DC Foreign LLC Online – Quick Recap

Get the Certificate of Good Standing from your home state where your LLC is originally registered
Check if the name of your LLC is available in DC to use for your foreign LLC. If not, file DBA name with DC SOS.
Get a registered agent in DC to represent your foreign LLC in DC. Recommended, professional help instead of being your own registered agent.
File the Application of Foreign LLC with the DC Secretary of State following the mentioned method(s) above.
Make the processing fee.

BOI Reporting

According to the Corporate Transparency Act, every LLC (or business) has to send a BOI reporting to the Financial Crimes Enforcement Network (FinCEN). Once you establish an LLC and if it is enlisted under the list of reporting companies, you must file your BOI report in DC with the FinCEN.

After Forming DC Foreign LLC

Here are added things you need to accomplish after forming your DC Foreign LLC

Obtain Business Licenses. Find the business licenses you’ll need using the Business License Search. You can contact the license office at Department of Consumer and Regulatory Affairs (DCRA).
File LLC annual reports and Business Privilege Tax. You must file an Annual Report before the stipulated time frame after forming your LLC in DC. Here’s everything about DC LLC Annual Reports.
Pay State Taxes like sales tax; you’ll need an EIN for your LLC.

FAQs

Can I form a foreign LLC in DC?

Yes, you can form a foreign LLC in the District of Columbia.

What is the process for forming a foreign LLC in DC?

The process for forming a foreign LLC in DC involves filing an application for registration with the Department of Consumer and Regulatory Affairs (DCRA).

Are there any name requirements for a foreign LLC in DC?

Yes, the name of your foreign LLC must be distinguishable from any other entities registered in DC.

Do I need a registered agent for my foreign LLC in DC?

Yes, a registered agent is required for your foreign LLC in DC.

Can I serve as my own registered agent for my foreign LLC in DC?

No, you cannot serve as your own registered agent for your foreign LLC in DC.

What is the role of a registered agent for a foreign LLC in DC?

A registered agent receives legal documents on behalf of your foreign LLC and ensures they are forwarded to you.

Is there a fee for forming a foreign LLC in DC?

Yes, there is a filing fee required for the registration of a foreign LLC in DC.

How long does it take to form a foreign LLC in DC?

The processing time for forming a foreign LLC in DC can vary, but it typically takes a few weeks.

Can I have a virtual office address for my foreign LLC in DC?

Yes, you can use a virtual office address as your business address for your foreign LLC in DC.

Do I need to file an annual report for my foreign LLC in DC?

Yes, foreign LLCs are required to file an annual report with the DCRA in DC.

What is the deadline for filing an annual report for my foreign LLC in DC?

The deadline for filing an annual report for your foreign LLC in DC is typically by April 1st each year.

Are there any ongoing compliance requirements for a foreign LLC in DC?

Yes, foreign LLCs in DC are required to file annual reports and pay applicable fees to maintain compliance.

Can I operate my foreign LLC in DC without a physical presence?

Yes, you can operate your foreign LLC in DC without a physical presence as long as you have a registered agent and business address.

Can I convert my foreign LLC into a domestic LLC in DC?

Yes, you can convert your foreign LLC into a domestic LLC in DC by filing the necessary paperwork with the DCRA.

Are foreign LLCs in DC subject to franchise taxes?

Yes, foreign LLCs in DC are subject to franchise taxes based on their gross receipts.

Can I operate multiple businesses under one foreign LLC in DC?

Yes, you can operate multiple businesses under one foreign LLC in DC, but it is recommended to consult with a legal professional.

Can I open a bank account for my foreign LLC in DC?

Yes, you can open a bank account for your foreign LLC in DC once it is officially registered with the DCRA.

Are foreign LLCs in DC required to obtain a business license?

Yes, foreign LLCs operating in DC are required to obtain a Basic Business License (BBL).

Can I hire employees for my foreign LLC in DC?

Yes, you can hire employees for your foreign LLC in DC once it is registered and compliant with local laws.

Do foreign LLCs in DC need to file for a tax ID number?

Yes, foreign LLCs in DC need to apply for an Employer Identification Number (EIN) for tax purposes.

Are foreign LLCs in DC required to collect sales tax?

Yes, foreign LLCs in DC are required to collect sales tax on applicable sales.

Can I use a trade name for my foreign LLC in DC?

Yes, you can use a trade name or “doing business as” (DBA) name for your foreign LLC in DC with proper registration.

What is the penalty for not filing an annual report for my foreign LLC in DC?

Failure to file an annual report for your foreign LLC in DC may result in late fees or administrative dissolution.

Can I dissolve my foreign LLC in DC if it’s no longer active?

Yes, you can voluntarily dissolve your foreign LLC in DC if it is no longer conducting business in the district.

Are foreign LLC owners in DC required to pay self-employment taxes?

Yes, foreign LLC owners in DC are generally subject to self-employment taxes on their business income.

Can I change the business address for my foreign LLC in DC?

Yes, you can update the business address for your foreign LLC in DC by filing a change of address form with the DCRA.

Can I convert my foreign LLC to a different entity type in DC?

Yes, you can convert your foreign LLC to a different entity type in DC by following the legal procedures for conversion.

Can I operate a foreign LLC in DC as a sole proprietor?

No, you cannot operate a foreign LLC in DC as a sole proprietor; you must register as a foreign entity.

What are the steps to form a foreign LLC in DC?

The steps to form a foreign LLC in DC include obtaining a Certificate of Authority from the DC Department of Consumer and Regulatory Affairs, appointing a registered agent in DC, and paying the necessary fees.

Do I need a registered agent in DC for my foreign LLC?

Yes, you are required to appoint a registered agent in DC for your foreign LLC to receive legal documents and official notices on behalf of your business.

In Conclusion

Having a foreign LLC in DC is nothing but expanding your business legally beyond the boundary of your domestic or home state. Starting a foreign LLC in DC does not require a lot of documentation or tasks. However, it is always good to seek help from a professional when it comes to running your business. From getting the Certificate of Good Standing to hiring a registered agent in DC, a professional or attorney can always be a perfect help. ZenBusiness is one of the most accurate and user-friendly services that offer a bunch of LLC formation services. They offer LLC formation for $0 (excluding the state formation fee).

The cost of registering a foreign LLC in DC can vary depending on a range of factors. While the initial registration fees and ongoing expenses can be a significant investment, many companies find that the benefits of establishing a presence in the state outweigh the costs. By carefully considering the expenses involved and budgeting accordingly, companies can ensure that their foreign LLC in DC is a success.