LLC Cost in DC – How Much to Pay for an LLC


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

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Perhaps you are hoping to form an LLC in DC. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in DC.

DC LLC Cost of Filing

Here are the costs involved in forming an LLC in DC.

Cost of Filing Formation Certificates

The DC Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the DC Secretary of State.

DC Domestic LLC

  • Online Filing costs $220.
  • Expedited Filing Fee $320
  • By mail: Fill out the application form, and send it to Department of Consumer and Regulatory Affairs Corporations Division PO Box 92300 Washington, DC 20090. costs $320
  • In-person filing: Fill out the application form, and send it to the Department of Consumer & Regulatory Affairs, 1100 4th St. SW, Washington, DC 20024. costs $320.
  • Biennial Report filing costs $300.00. Late filing of the report bears a penalty of $100.00.

DC Foreign LLC

  • Online Filing Costs $220
  • By mail: Fill out the application form, and send it to the Department of Consumer and Regulatory Affairs Corporations Division PO Box 92300 Washington, DC 20090, costs $220.
  • Biennial Report filing costs $300.00. Late filing of the report bears a penalty of $100.00.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

DC LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in DC, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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#1 TOP PICK

$0 + State Fees

  • 100% accuracy guarantee

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$0 + State Fees

  • Established reputation

  • Extras are bit more expensive

  • Good customer support

Business Permits and Licenses

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the DC Department of Revenue for regulatory boards or agencies requiring licensing.

Business taxes

Apart from the filing of the Annual Report, the DC LLCs are also subject to state tax filing obligations. Though the taxes vary from place to place. There are different types of taxes imposed on entities operating their businesses in DC, such as federal income tax, payroll tax, sales tax, etc.

Income Tax

The income tax in the State varies between 4%-8.95% depending on the amount of income earned. If your business sells products into the State, it shall also attract sales tax at the rate of 6%.

Self-Employment Tax

DC Federal Self-Employment Tax is imposed on the business members who take profits out of the LLC. The current tax rate is 15.3%.

Federal Income Tax

DC Federal Income Tax is paid only on the income that you extract from the profits of your business, reducing the allowances and other deductions. The bracket for this is the same as the State Income Tax.

Withholding Tax

If you employ any person in your business, you must withhold the payroll tax from your employees at the rate of 7.65% of their taxable salary.

Other Mandatory Costs

DC LLC Name: It costs $50 to reserve the name of your LLC for 60 days.

Home Occupation Permit: The application for a Certificate of Occupancy for a DC LLC costs $72.60.

Business License: Obtaining Basic Business License costs around $200 for DC LLCs. Assessment of the licenses is done every two years and the licenses can be renewed at a cost of $70 with $25 for each endorsement. The DCRA Government website provides updated costs information to set up an LLC in DC.

Comparison with the Neighbouring States

Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to DC, check out the table below:

StatesDCMarylandPennsylvaniaDelawareWest Virginia
Online filing fee$220$100 (Mail)
$150 (online or in-person)
$125$90$100
LLC Annual fee$300 (Biennial)$300$520 times the number of members of the LLC$300$25
Name reservation fee$50$25$70$75$15
Sales Tax6%6%6%No sales tax6%

The Department of Consumer and Regulatory Affairs offers several programs for the District of Columbia to support businesses. Those who want to start an LLC in DC can explore different sectors and trade as per their preferences. The major sectors contributing to the GDP of DC are retail trade, wholesale trade, construction, and utilities.

Other Costs

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

How Much Does It Cost to Maintain an LLC in District of Columbia

To maintain an LLC in District of Columbia you will need to pay a biennial fee of $300 along with sales tax at 6%, income tax (4-8.95%) and federal taxes.

One of the costs associated with maintaining an LLC in the District of Columbia is the annual report fee. LLCs must file an annual report with the Department of Consumer and Regulatory Affairs (DCRA) to update the company’s information, such as the names and addresses of members and managers. The filing fee for the annual report varies depending on the company’s revenue and can range from a few hundred dollars to over a thousand dollars.

Additionally, LLCs in the District of Columbia are required to pay a biennial report fee every two years to maintain their status as registered entities. This fee is separate from the annual report fee and helps fund the DCRA’s operations and oversight of business entities in the region.

Another cost associated with maintaining an LLC in the District of Columbia is the Registered Agent fee. LLCs must designate a registered agent, who is responsible for receiving legal documents and official correspondence on behalf of the company. Many business owners choose to hire a professional registered agent service to fulfill this requirement, which typically costs a few hundred dollars per year.

Beyond monetary costs, business owners must also consider the time and effort required to meet ongoing compliance obligations. LLCs in the District of Columbia are required to adhere to certain regulations, such as holding annual meetings of members and managers, maintaining accurate records and financial statements, and filing tax returns with the Internal Revenue Service (IRS) and the District of Columbia Office of Tax and Revenue.

Failure to comply with these requirements can put the LLC’s limited liability status at risk and could result in penalties or fines from government regulators. Additionally, noncompliance could lead to the company being dissolved or its members being personally liable for the company’s debts and obligations.

While maintaining an LLC in the District of Columbia comes with certain costs and responsibilities, the benefits of operating under this business structure often outweigh the drawbacks. LLCs provide business owners with limited liability protection, meaning their personal assets are shielded from the company’s debts and legal liabilities. Additionally, LLCs offer flexibility in terms of management and taxation, allowing owners to choose how they want to structure their business and how they want to be taxed.

In conclusion, managing an LLC in the District of Columbia requires a financial investment and a commitment to meeting regulatory obligations. Business owners should be aware of the costs associated with maintaining an LLC and should budget accordingly to ensure compliance with state regulations. By understanding and managing these costs, businesses can protect their limited liability status and position themselves for long-term success in the region.

In Conclusion

The cost of D.C. is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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