District of Columbia vs Missouri LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026District of Columbia charges $99 to form an LLC; Missouri charges $50. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.
Over a rolling three-year window, Missouri runs about $1,249 less in total state fees than District of Columbia. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.
District of Columbia imposes an entity-level annual tax on every LLC ($250 minimum). Missouri does not. For pass-through LLCs that would otherwise owe nothing at the state level, that minimum is the deciding line.
On speed, Missouri typically clears standard online filings faster than District of Columbia. Both states offer expedited tiers at an additional cost for filers on tight timelines.
For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.
Key differences at a glance
- Missouri costs $49 less to form ($50 vs $99).
- Missouri is $400 per year cheaper to maintain ($100 vs $500).
- District of Columbia imposes an entity-level franchise or LLC tax that applies to pass-through LLCs. Missouri does not.
- Missouri requires LLCs to adopt a written operating agreement by statute. The other state treats it as recommended rather than required.
- Missouri has no annual report filing at all. District of Columbia requires an annual (or biennial) report every reporting period.
Where each state fits
For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.
What each state offers that the other does not
Only District of Columbia
- Paid expedited tier
- Operating agreement not statutorily required
Only Missouri
- No entity-level franchise or LLC tax
- No annual report
Both states
- Online filing
- No publication requirement
Three-year cost, side by side
Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.
Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).
What it costs under your specific situation
The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.
| Scenario | Year 1 | Each year after | 3-year total |
|---|---|---|---|
| You live in District of Columbia, business operates there No foreign LLC registration needed. You pay District of Columbia fees only. | $599 | $500 | $1,599 |
| You live in Missouri, business operates there No foreign LLC registration needed. You pay Missouri fees only. | $150 | $100 | $350 |
| Non-resident forming in District of Columbia with operations elsewhere You pay District of Columbia's fees plus a typical home-state foreign LLC registration of about $200 per year. | $799 | $700 | $2,199 |
| Non-resident forming in Missouri with operations elsewhere You pay Missouri's fees plus a typical home-state foreign LLC registration of about $200 per year. | $350 | $300 | $950 |
District of Columbia vs Missouri: full comparison
| Dimension | District of Columbia | Missouri |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 5 business days | 1 business day |
| Expedited option Paid fast-track filing | $50 | Not offered |
| Annual report Required in addition to tax | Required, $300 | None |
| State-imposed annual tax Franchise, privilege, or LLC tax minimum | $250 minimum | None |
| State income tax On pass-through LLC income at member level | Yes | Yes |
| Publication requirement Newspaper publication after formation | No | No |
| Operating agreement Required by state statute | Recommended, not required | Required by statute |
| Foreign LLC fee Cost to register as a foreign LLC in this state | $220 | $105 |
| State sales tax General statewide rate | 6.0% | 4.2% |
Taxes in District of Columbia and Missouri
How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.
District of Columbia tax
$250 minimum annual tax (net-income-with-minimum basis). State income tax applies to member-level pass-through income. Corporate rate 8.3%.
Missouri tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 4.0%.
Ongoing compliance
The recurring filings each state requires after formation.
District of Columbia
Annual report $300, due 04/01 each year. Registered agent required in District of Columbia.
Missouri
No annual state filing. Registered agent required in Missouri.
Formation process, side by side
What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.
District of Columbia
- Check business-name availability on the District of Columbia entity search.
- Appoint a registered agent with a physical District of Columbia street address.
- File Articles of Organization for Domestic Limited Liability Company (Form DLC-1) for $99.
- Wait for approval. Online typically 5 business days. Paid expedite from $50.
- Adopt an operating agreement (recommended, not required by District of Columbia statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $300 when it comes due.
Missouri
- Check business-name availability on the Missouri entity search.
- Appoint a registered agent with a physical Missouri street address.
- File Articles of Organization of a Limited Liability Company (LLC 1) for $50.
- Wait for approval. Online typically 1 business days. No paid expedite offered.
- Adopt a written operating agreement (statutorily required in Missouri).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- No annual state filing required in Missouri.
Before you pick either state
A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.
Registered agent is non-negotiable. Both District of Columbia and Missouri (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.
Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in District of Columbia or Missouri does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.
EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.
Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.
Agency contacts
DC Department of Licensing and Consumer Protection, Corporations Division
- Website
- dlcp.dc.gov
- Phone
- (202) 671-4500
- dlcp@dc.gov
- 1100 4th Street, SW, Washington, DC 20024
- Hours
- 8:30 AM to 4:30 PM Eastern Monday, Tuesday, Wednesday and Friday; 10:30 AM to 4:30 PM Eastern Thursday
Missouri Secretary of State, Corporations Division
- Website
- www.sos.mo.gov/business/corporations
- Phone
- (573) 751-4153
- corporations@sos.mo.gov
- Corporations Division, Missouri Secretary of State, P.O. Box 778, Jefferson City, MO 65102
- Office
- Corporations Division, 600 W. Main Street, Missouri State Information Center, Room 322, Jefferson City, MO 65101
- Hours
- 8:00 AM to 5:00 PM Central, Monday to Friday
DC Office of Tax and Revenue
- Website
- otr.cfo.dc.gov
- Phone
- (202) 727-4829
- e-services.otr@dc.gov
- 1101 4th Street, SW, Suite 270 West, Washington, DC 20024
- Hours
- 8:15 AM to 5:30 PM Eastern, Monday to Friday
Missouri Department of Revenue
- Website
- dor.mo.gov
- Phone
- (573) 751-3505
- Missouri Department of Revenue, Harry S Truman State Office Building, 301 West High Street, Jefferson City, MO 65101
- Office
- Harry S Truman State Office Building, 301 West High Street, Jefferson City, MO 65101
- Hours
- 8:00 AM to 5:00 PM Central, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in District of Columbia or Missouri?
Missouri is cheaper at formation ($50) than District of Columbia ($99). Ongoing costs are also different: $100 vs $500 per year. Total over three years: $350 vs $1,599.
-
Can I form an LLC in District of Columbia if I live in Missouri?
Yes, but your Missouri business will almost certainly need to register as a foreign LLC in Missouri too, which means paying Missouri's foreign registration fee and any ongoing Missouri obligations on top of the District of Columbia ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
-
How long does it take to form an LLC in District of Columbia vs Missouri?
District of Columbia online: 5 business days; Missouri online: 1 business day. District of Columbia offers paid expedite from $50. Missouri does not offer paid expedite.
-
Which state has lower taxes for an LLC, District of Columbia or Missouri?
District of Columbia: state income tax applies to member-level pass-through income, plus a $250 minimum entity-level tax. Missouri: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
-
Do both states require a registered agent?
Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. District of Columbia and Missouri both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
-
Do I need a written operating agreement in District of Columbia or Missouri?
Missouri requires LLCs to adopt a written operating agreement by statute. District of Columbia treats it as strongly recommended rather than required. In practice, any LLC with more than one member, or any LLC planning to preserve its liability shield, should have a written agreement regardless of which state it's formed in.
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Which state should I pick if I run an online business from home?
Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in District of Columbia or Missouri to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.
Full state guides
More District of Columbia and Missouri comparisons
More District of Columbia vs ...
Sources
- Filing fee: dlcp.dc.gov/node/1621921 · verified April 21, 2026
DLCP Corporations Division fee schedule for Limited Liability Company filings. Domestic LLC certificate of organization filing fee is $99.00. Amendment, statement of authority, statement of dissolution, merger, and most other LLC filings are $220. DC calls the formation document a certificate of organization in statute (section 29-802.01) but the DLC-1 form retains the Articles of Organization label. - Expedited filing: dlcp.dc.gov/node/1621901 · verified April 21, 2026
DLCP Fees for Corporate Registration Services page. Expedited same-day service: $100 in addition to all other fees required by statute. Expedited 3-day service: $50 in addition. Expedited fee is automatic for walk-in customers at the Business License Center. Expedited service may be limited or unavailable for mail-in filings; available via CorpOnline for web filings. We record the cheaper 3-day tier ($50, 72 hours) as the default. Same-day tier: $100 additional, 24-hour target. - Annual report fee: dlcp.dc.gov/node/1621921 · verified April 21, 2026
DLCP LLC fee schedule. Biennial report fee is $300 for domestic and foreign LLCs. Biennial report late fee is $100. D.C. Code section 29-102.11 sets the April 1 deadline every two years. - Annual report fee: code.dccouncil.gov/us/dc/council/code/sections/29-102.11 · verified April 21, 2026
D.C. Code section 29-102.11(c). First biennial report due April 1 of the year following the calendar year in which the public organic record became effective. Subsequent biennial reports due April 1 of each second calendar year thereafter. Failure to file leads to administrative dissolution per section 29-106.02. - Franchise tax: otr.cfo.dc.gov/page/dc-business-franchise-tax-rates · verified April 21, 2026
DC Office of Tax and Revenue Business Franchise Tax Rates page. Unincorporated Business Franchise Tax (UBT): 8.25% rate (all years 2018 and later). Filing threshold: DC-source gross income over $12,000 triggers a filing obligation. Minimum tax: $250 if DC gross receipts are $1,000,000 or less; $1,000 if over $1,000,000. A 30% salary allowance for owners and a $5,000 exemption apply in computing taxable income. Exemption: a business is exempt if more than 80% of gross income is derived from personal services rendered by the members and capital is not a material income-producing factor. - Franchise tax: code.dccouncil.gov/us/dc/council/code/titles/47/chapters/18/subchapter… · verified April 21, 2026
D.C. Code Title 47, Chapter 18, Subchapter VIII: Tax on Unincorporated Businesses. Section 47-1808.01 defines unincorporated business and sets exemptions. Section 47-1808.03 sets the rate. Section 47-1808.04 governs the $250/$1,000 minimum and the 30% salary allowance and $5,000 exemption used to compute taxable income. Confirms UBT applies to LLCs taxed as partnerships or disregarded entities federally, unless exempt. - Operating agreement requirement: code.dccouncil.gov/us/dc/council/code/sections/29-801.07 · verified April 21, 2026
D.C. Code section 29-801.07 permits but does not require an operating agreement. Section 29-801.02 defines operating agreement as the agreement of all the members; it may be oral, implied, in a record, or in any combination. Recorded as operatingAgreementRequired: false. - Foreign LLC registration fee: dlcp.dc.gov/node/1621921 · verified April 21, 2026
DLCP LLC fee schedule. Foreign LLC Foreign registration statement filing fee is $220.00. - Publication requirement: code.dccouncil.gov/us/dc/council/code/titles/29/chapters/8 · verified April 21, 2026
DC does not require newspaper publication for LLC formation. No such requirement exists in D.C. Code Title 29, Chapter 8 (Limited Liability Companies). Recorded as required: false. - Business name search: corponline.dlcp.dc.gov/ · verified April 21, 2026
DLCP CorpOnline portal is the unified entity registration and entity search system. Old corponline.dcra.dc.gov URL now redirects here. Use before filing DLC-1 to confirm name availability. - Sales tax rate: otr.cfo.dc.gov/page/sales-and-use-tax-faqs · verified April 21, 2026
DC Office of Tax and Revenue general sales tax FAQs. General Sale tax rate: 6%. Higher tiered rates apply to soft drinks (8%), prepared food and alcohol for on-premise consumption (10%), rental vehicles and off-premises liquor (10.25%), lodging (15.95%), and parking (18%). - Corporate income tax rate: otr.cfo.dc.gov/page/dc-business-franchise-tax-rates · verified April 21, 2026
DC Corporate Franchise Tax rate is 8.25% for tax year 2025 and all years since 2018. Minimum corporate franchise tax: $250 if DC gross receipts $1M or less; $1,000 if over $1M. Corporations or financial institutions are not exempt from the minimum even if otherwise exempt under DC Code. - Filing fee: www.sos.mo.gov/CMSImages/Business/fees.pdf?v=2025 · verified April 21, 2026
Missouri SOS Schedule of Fees and Charges (revised 01/2025), Chapter 347 Limited Liability Companies: Certificates of Limited Liability Company (domestic online) $50.00; Certificates of Limited Liability Company (domestic or foreign, paper) $105.00. Includes $5 Technology fund component. Mo. Rev. Stat. 347.179(1) sets the base fees as $45 online / $100 paper; the $5 tech surcharge brings totals to $50/$105. - Expedited filing: www.sos.mo.gov/business/corporations/forms · verified April 21, 2026
Missouri SOS Corporations Division does not publish an expedited service tier for LLC filings. Online filings through bsd.sos.mo.gov are typically processed immediately or within one business day at the standard $50 fee, so there is no separate expedite option. A $55 Pre-Clearance Examination is available for reviewing a document for form and legal adequacy before submission (Schedule of Fees and Charges, General Fees) but does not accelerate filing itself. - Operating agreement requirement: revisor.mo.gov/main/OneSection.aspx?section=347.081 · verified April 21, 2026
Mo. Rev. Stat. 347.081(1) provides that the member or members of an LLC 'shall adopt' an operating agreement. The statute uses mandatory language (shall adopt) and describes permissible contents, making Missouri one of the handful of states (with California, Delaware, Maine, and New York) that statutorily require an operating agreement. The agreement does not need to be filed with the SOS and may be in any form, but it must exist. - Foreign LLC registration fee: www.sos.mo.gov/CMSImages/Business/fees.pdf?v=2025 · verified April 21, 2026
Missouri SOS Schedule of Fees and Charges (01/2025): Certificates of Limited Liability Company (domestic or foreign)(paper) $105. Foreign LLCs must file the Application for Registration of a Foreign Limited Liability Company (LLC 4) by paper; Missouri does not publish an online filing path specifically for foreign LLC registration. - Business name search: bsd.sos.mo.gov/BusinessEntity/BESearch.aspx?SearchType=0 · verified April 21, 2026
Missouri SOS Business Entity Search. Confirm name distinguishability before filing the LLC 1. - Corporate income tax rate: dor.mo.gov/taxation/business/tax-types/corporation-income/ · verified April 21, 2026
Missouri Department of Revenue Corporation Income Tax page: the corporate income tax rate is a flat 4% for tax years beginning on or after January 1, 2020 (Chapter 143 RSMo). Applies to LLCs electing C-corp treatment. - Sales tax rate: dor.mo.gov/taxation/business/tax-types/sales-use/ · verified April 21, 2026
Missouri Department of Revenue Sales/Use Tax page: state sales and use tax rate is 4.225% (3.0% General Revenue, 1.0% Education, 0.125% Conservation, 0.10% Parks/Soils). Local jurisdictions add their own sales tax on top; combined rates typically range from 5% to over 10%.