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The objective of the annual report is threefold. The annual report keeps the Government informed about all updates, communicates modifications or changes, & it keeps the LLC members informed about necessary taxes and costs. This article has all the information about the District of Columbia LLC Annual Report filing in the District of Columbia.
An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This annual report is a comprehensive record of the company’s activities for the entire year. It is also referred to as the Annual Franchise Tax Report, as it facilitates the filing of the franchise tax.
Content of the Annual Report
Typically, the annual report filed by an LLC in DC (or any other business entity for that matter) will include all the information related to its business & members. The standard contents of the annual report or the annual franchise tax report are
- Office Address of the LLC
- Names & Addresses of the Members & managers.
- Identification Documents
- Social Security numbers of the key members of the LLC
- The objective of the business of the LLC
- List of all the signatories of the LLC
- Information of the registered agent, if any
LLC Tax Update: Before you file your LLC annual report in the District of Columbia, make sure to pay all the tax dues for the year.
District of Columbia LLC Biennial Report
Unlike many states, the state of District of Columbia requires an LLC to file a Biennial report. A biennial report makes sure that all the information provided by the LLC is accurate & updated. This information about the LLC is necessary for the State officials to track the company’s tax payments.
In the District of Columbia, instead of an Annual filing of the report, an LLC has to file a biennial report (a report to be filed every two years). Such a report must include updated information about the company’s addresses, the addresses of its registered agent, and other relevant details. Note that the LLC Annual Report is not the same as the Certificate of Good Standing in the District of Columbia.
Does the District of Columbia Require an Annual Report Filing?
The District of Columbia requires an LLC to file a Biennial report every two years with the Office of the District of Columbia Department of Consumer and Regulatory Affairs. All the legal entities, such as C Corporations, Limited Partnerships, and Limited Liability Companies, are bound to file the Biennial Report in the District of Columbia.
How to File a District of Columbia LLC Biennial Report
In the District of Columbia, an LLC can file the Biennial Report online, by mail, or in person. Every two years, LLCs in DC are required to file the Biennial Report on April 1. For example, if an LLC is approved by the SOS in March 2025, the first Biennial Report should be filed on April 1st, 2027.
In the District of Columbia, annual reports can be filed with the Secretary of State online by following a few simple steps.
- Step 1: Visit the District of Columbia Government’s official website.
- Step 2: If you have already created an account on the Columbia Government’s official website, you can simply enter your credentials & log in. If you don’t have an existing account, sign up & create one.
- Step 3: After logging in to the website, select the option to submit the Biennial Report and file the required documents & fees.
Filing District of Columbia LLC Biennial Report By Mail
To file the Biennial Report in the District of Columbia by mail, you can follow the steps as below:
- Click on the District of Columbia Document Management System website.
- Click on the All Documents button.
- Type BRA-25 in the search box.
- Click on the form & the form will automatically download.
- Print the form and attach the required documents.
- Write a check properly to make the payment.
- Send the printed copies of the forms and relevant documents to the Department of Consumer and Regulatory Affairs, Corporations Division, P.O. Box 92300, Washington, DC 20090, with $300 filing fees.
District of Columbia LLC Biennial Report (Domestic & Foreign)
| State Office: | Department of Consumer and Regulatory Affairs, Corporations Division, P.O. Box 92300, Washington, DC 20090. Links to Website, Forms |
| Due Date: | April 1st Every second year. |
| Filing Fee: | The Biennial report filing fees in the District of Columbia are $300 in the second year when the biennial report is submitted. In the first year, there is no fee. |
| Penalty: | If the Biennial Report is filed post-April 1(in the second year), then an LLC will be charged with a $100 late fee. If an LLC doesn’t file the biennial report at all, it may lead to the dissolution of the LLC. |
| Filing Method: | An LLC can file the District of Columbia Biennial report Online Or by Mail |
| Forms: | Form |
| Important Information: | A biennial report is as important as an Annual Report & failure to file the same can result in the dissolution of the LLC. |
Biennial Report Deadline
The District of Columbia Biennial Report is due by April 1 every 2 years.
Penalties for Non-filing or late filing
If an LLC fails to file the Biennial Report within the prescribed time, the District of Columbia Department of Consumer and Regulatory Affairs charges a late filing penalty of $100.
Tax Structure in District of Columbia LLC
For an LLC in the District of Columbia, the tax structure is very simple and flexible. First of all, every LLC has the advantage of a pass-through taxation. On the other hand, an LLC can choose the desired tax structure at the time of formation. There are two ways an LLC can be taxed,
Default Status:
When filing your LLC in the District of Columbia, entrepreneurs have the opportunity to select a desirable tax structure. If they do not choose a specific structure, the LLC will be taxed under the ‘Default Status’. That means the tax will be levied based on the number of LLC members.
For a single-member LLC, it is considered a ‘disregarded entity’. This means that a single-member LLC does not have to file a federal income tax return, but the individual (or the LLC member) must file it personally. In the case of a single-member LLC, it is treated as a sole proprietorship.
In the case of a multi-member LLC, it is considered a partnership for tax purposes. Hence, the default status for a multi-member LLC is a partnership firm. LLCs are required to file a separate ‘partnership form’ with the IRS.
LLCs with Spouses: There are specific states (like California) where starting an LLC with a spouse is considered a single-member LLC instead of a partnership or multi-member LLC. In such cases, both husband and wife will be liable to pay taxes
Elective Status:
For an elective status, the LLC can choose the tax structure while filing the formation documents. LLCs in the District of Columbia should file a separate tax form if they do not wish to be taxed by default. Many LLCs choose to be taxed as a corporation to enjoy corporate benefits, especially if the LLC is large.
LLCs can choose between S-Corp and C-Corp tax status when filing the formation document in District of Columbia. In that case, the concerned LLC needs to submit a separate form for each type it chooses. For the S-Corp type, Form 2553 must be submitted; for the C-Corp type, Form 8832 must be submitted.
In District of Columbia, there may be local taxes (inquire with the local government body for details) that LLCs must pay to be updated. Make sure to pay and update your tax dues before you file your annual report in Disctrict of Columbia.
Annual Report vs Certificate of Good Standing in District of Columbia
The Certificate of Good Standing is a legal document that certifies that an LLC in District of Columbia is in good standing and compliant with all applicable laws. That includes an updated annual report as well. While Annual Reports show if your company is up to date.
They are both similar documents (although not identical) and serve as proof of the company’s good standing. The Annual Report is a domestic document, whereas the Certificate of Good Standing in District of Columbia is a mandatory document if the LLC is going beyond the home state to a foreign state. There are several ways to obtain a Certificate of Good Standing in District of Columbia.
In the District of Columbia, one must sign up with the DC Bar to obtain 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.
A filing fee of $20 must be paid to the SOS to obtain the Certificate of Good Standing. The amount might be more depending on the number of copies you request. If you request additional copies of documents, you may incur an additional fee.
Request Certificate of Good Standing:
- Online application: Log in to the DC Bar Official Portal
- Offline application: Not available
- Fees: $25
Why Do LLCs Have to File the Annual Report?
Some states are not required to file this yearly report, commonly referred to as the Annual Report. However, there are several reasons why states require an LLC Annual Report. Here are some reasons,
To Maintain the Accuracy of the Information
An annual report filed by the LLC has all the updated information about its official addresses & the names or addresses of all its officials. This updated information allows the State authorities to track down any LLC when communicating.
To Provide the Correct Correspondence
Many times, any creditor or other entity willing to transact with the LLC requires the correct correspondence address. If this information (which can only be modified with the help of an annual report) is not updated every year, such entities will not be able to communicate with them.
To Notify the Government About All the Significant Changes
If you have changed your main business address or had new business appointments of managers or members, the annual report notifies the State Government Entities about it. So, the next time someone questions a newer reform that you have introduced in your LLC, you will be saved because you had submitted the information to the Government.
To Provide an Activity Log of an LLC
The Annual report is like an activity log of the LLC. It brings on record all the transactions, new associations, appointments, etc. & keeps those records intact for all future references.
To Help You With the One-time Filing of Taxes
The annual report is an excellent means to keep you on your toes in case of your dues payment. Every LLC must pay taxes through the annual report filing. By filing the report on time, the LLC can manage the exemptions & can avoid penalties imposed by the Government.
To Enable the State to Track the Payments
The government authorities use all the information filed through the annual report, for tracking the payment of State Taxes.
Seek the Help of a Registered Agent
Every State will have a different rule for filing the Annual Report. Usually, it is submitted every year, but it is submitted once in two years in some states. Some states require the filing of the report only once in ten years.
Not only the timing, the mode of filing, the proper addresses, exemptions, legality, annual report compliance, etc., have to be taken care of while paying the taxes or filing any reports with the State authorities. In many such scenarios, it is advised that an LLC appoints a Registered Agent to manage all this. Check out the best LLC service that offers all the services at an affordable price. An experienced agent is required for:
- Streamlining the mandatory processes & filing.
- Sending or receiving any documents.
- Reminding you about important dates of filing or payment of taxes.
- Simplifying the filing procedures.
- Avoid any penalties.
- Flexibility in working.
- Maintaining Privacy (as it keeps your personal records off the public record)
You can read more about a District of Columbia Registered Agent here.
FAQs
Yes, an annual report is essential for every business entity in most states. Some states also ask to file biennial or decennial reports to be filed.
A Yearly Business Report or the annual report typically incorporates the address of the business, names & addresses of the members, a list of all the signatories, SSN of the members, & details of the registered agent.
A Registered Agent is well-aware of all the filing requirements, annual report filing fee, & overall Annual Report compliance. The knowledge & proficiency of the registered agent allows the smooth filing of reports & other fees.
The most important thing for filing an Annual Report is record keeping. Make sure that you document every other transaction well.
Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing.
In Conclusion
In conclusion, we can see that the annual report – which is also called the Franchise Tax Public Information Report is much easy to be filed. However, it is mandatory to file the report on time to avoid any penalties. If you are running an LLC in the state of the District of Columbia, you have to comply with the filing of certain important documents including the annual report or the Franchise Tax Public Information Report as it is named in the state of District of Columbia.
It is also important to note that once this Public Information Report is filed with the Comptroller of Public Accounts, there is no need for additional filing with the secretary of state. Additionally, please note that an annual report is not the same as a Certificate of Good Standing in Disctrict of Columbia. They might look similar, as many parts of the certificate are the same as those in the annual report; however, it is a completely different document and should be compliant with the filing requirements for the annual report in Disctrict of Columbia.