How much does it cost to form an LLC in DC in 2026?

The filing fee for the Articles of Organization (Form DLC-1) is $99, paid once to the DC Department of Licensing and Consumer Protection. Plan another $50 to $125 per year for a commercial registered agent if you are not serving as your own. If you elect expedited service, 3-day costs $50 and same-day costs $100 on top of the filing fee.

Does DC have an annual report for LLCs?

No, it runs on a two-year cycle. DC LLCs file a biennial report every two years under D.C. Code §29-102.11, with the first one due April 1 of the year after formation and each subsequent one due April 1 two years later. The fee is $300, which works out to $150 per year. A $100 late fee applies after April 1 and continued non-filing leads to administrative dissolution.

Do DC LLCs pay state income tax?

DC imposes the Unincorporated Business Franchise Tax (UBT) on LLCs that are not taxed as C corporations federally. The rate is 8.25% on DC-sourced net income, with a $250 minimum when DC gross receipts are $1 million or less, and $1,000 when they exceed $1 million. Filing is required once DC-source gross income exceeds $12,000 in a year. An 80% personal-services exemption under D.C. Code §47-1808.01 takes many consulting, legal, medical, and creative LLCs out of the tax entirely.

Who qualifies for the DC UBT 80% exemption?

An unincorporated business is exempt from UBT if more than 80% of gross income comes from personal services actually rendered by the owners or members, and capital is not a material income-producing factor. That typically covers single-member consulting LLCs, two-member law firms, solo medical practices, photographers, designers, and tutors. It does not cover product companies, restaurants, real estate LLCs, or contractors with meaningful equipment and inventory, because capital is material for those businesses.

How long does it take to form a DC LLC?

Online filings through CorpOnline typically clear in about 5 business days. Mail filings to the DLCP Corporations Division take closer to 21 business days, which is on the slow end for US jurisdictions. DC sells expedited service at two tiers: $50 for 3-day and $100 for same-day, both on top of the regular filing fee.

Should I form my LLC in DC instead of my home state?

Only if you actually live or operate in DC. UBT apportions to DC-sourced income, so forming here for non-DC activity does not create a DC tax obligation but it does stack the biennial report, foreign registration back home, and Clean Hands compliance on top of your home state's filings. For non-residents looking for a low-friction wrapper, Wyoming is cheaper; for DC residents, forming in DC is the right call.

Does DC require an operating agreement?

No. D.C. Code §29-801.07 permits an operating agreement but does not require one, and §29-801.02 allows it to be oral, implied, or in a record. Any multi-member DC LLC should still have a written agreement to override the statutory defaults and to satisfy banks when you open an account. It does not need to be filed with DLCP.

What is a Clean Hands certificate and do DC LLCs need one?

Clean Hands is DC's way of confirming a business has no outstanding tax or regulatory debt above $100 to any DC agency. It is required before DLCP will issue or renew certain licenses and before the government will do business with the entity, and it is pulled from MyTax.DC.gov after the LLC registers a tax account. Landlords, clients, and banks sometimes also ask to see one. Keeping Clean Hands means staying current on UBT (if applicable), sales tax, and other DC obligations.

DC LLC: fees, filing steps, and 2026 costs

$99 Filing fee Online filing available

$599 Year 1 estimate Filing + first year tax + RA

5 days (expedited 72h) Approval Mail ~21d

$400 per year Ongoing Due 04/01 annually

Where District of Columbia fits, and where it doesn't

Good fit for District of Columbia

You live in DC and run a professional services practice (law, medicine, consulting, design, creative) where more than 80% of revenue comes from personal services by the owners. Those LLCs typically qualify for the UBT exemption under D.C. Code §47-1808.01 and owe no entity-level tax. You run a small DC business under the $12,000 DC-gross-income threshold and want a clean home-jurisdiction LLC for liability reasons. You are a DC resident forming a holding entity for DC-only activity and are fine with the biennial compliance cadence.

Skip District of Columbia when

You own DC rental property or flip DC real estate through the LLC. Capital is a material income-producing factor for real estate, which disqualifies the personal-services exemption, and the UBT hits the full DC-sourced profit at 8.25% on top of the $250 or $1,000 minimum. You sell physical products out of DC and capital (inventory, equipment) drives meaningful revenue. You live in Virginia or Maryland and commute into a DC office. The UBT apportions to where the business operates, so if the business actually operates from DC, the tax follows. You want to form in DC as a non-resident for the address prestige; the biennial report, UBT filing, and Clean Hands certificate all stack up for a business that does not actually need DC registration.

What a District of Columbia LLC actually costs

Formation filing fee Paid once at formation $99
Commercial registered agent Annual, estimate $100
Annual report fee Every 2 years, due 04/01 $300
State LLC tax minimum Minimum, scales with revenue $250
Year 1 total estimate Formation plus first-year ongoing $599

Registered agent estimate uses a $100 midpoint. Specialist agents start around $50 per year. Full-service formation companies bundle RA for $125 to $200.

Cost across the first three years

Year 1 $599

Year 2 $500

Year 3 $500

How District of Columbia compares on the basics

Online filing File through state portal

Yes

Expedited processing $50 for 72h

Yes

Annual report required Separate report on top of tax

Yes

State-imposed annual tax Minimum $250 per year

$250

Written operating agreement required Recommended, not statutorily required

Recommended

Newspaper publication requirement Not required in this state

State sales tax 6% state rate

How to apply for an LLC in District of Columbia

Pick a compliant LLC name
The name must end in "Limited Liability Company," "LLC," or an approved abbreviation, and must be distinguishable from every other entity on the District of Columbia Secretary of State record. Check availability at the District of Columbia entity search.
Designate a registered agent
Every District of Columbia LLC is required to have a registered agent with a physical street address in District of Columbia. You can serve as your own agent if you live in District of Columbia, or hire a commercial service for $99 to $249/yr. See the District of Columbia registered agent guide.
File Articles of Organization for Domestic Limited Liability Company (Form DLC-1)
Filing fee is $99. Online filing is available through the state portal. Mail filings are accepted. Paid expedite is available for $50.
Apply for a federal EIN
Free directly from the IRS in about 15 minutes (see the EIN guide). Required for opening a business bank account, hiring employees, and most formation-service tax workflows.
Adopt an operating agreement
District of Columbia does not require an operating agreement by statute, but adopting one is strongly recommended to preserve the liability shield. See the operating agreement pillar for the 12 clauses every agreement should include.

Filing walkthrough

File Form DLC-1 (labeled Articles of Organization for Domestic Limited Liability Company, even though statute calls it a Certificate of Organization) through the DLCP CorpOnline portal at corponline.dlcp.dc.gov. The fee is $99 whether you file online or on paper, and online processing runs about 5 business days. Mail filings to the Corporations Division at 1100 4th Street SW take closer to 21 business days, which is slower than most states, so use CorpOnline unless you have a reason not to. If you need it faster, DC sells $50 for 3-day expedited and $100 for same-day; same-day is automatic for walk-ins at the Business License Center.

Every DC LLC needs a registered agent with a DC street address, and you can serve as your own if you are a DC resident. The DLC-1 is short (name, principal office, agent, management structure). After the entity is on file with DLCP, you still have a second step: register for a tax account with the Office of Tax and Revenue at MyTax.DC.gov and pull a Clean Hands certificate once you have any tax activity. DC is the only US jurisdiction where a Clean Hands certificate attaches to ongoing compliance, and banks and clients sometimes ask to see it. The DLCP filing alone does not satisfy the tax side.

Check name availability File online District of Columbia formation guidance

How District of Columbia taxes an LLC

DC's UBT is the piece that makes this jurisdiction different from a typical state. Every LLC that is not taxed as a C corporation federally is an unincorporated business under D.C. Code Title 47, Chapter 18, Subchapter VIII. If DC-source gross income exceeds $12,000 in a tax year, the LLC files Form D-30 and owes UBT at 8.25% on DC-sourced net income. The minimum is $250 when DC gross receipts are $1 million or less, and $1,000 when they exceed $1 million. D.C. Code §47-1808.04 allows a 30% salary allowance for owners and a $5,000 exemption in computing taxable income, which softens the effective rate.

The 80% personal-services exemption under §47-1808.01 is the important one. If more than 80% of gross income comes from personal services actually rendered by the owners or members, and capital is not a material income-producing factor, the LLC is exempt from UBT entirely. A single-member consulting LLC, a two-member law firm, a solo medical practice, a photographer, a tutor, a management consultant. These typically clear the exemption and owe nothing. A product company, a restaurant, a real estate LLC, a contractor with meaningful equipment and materials: none of those qualify, because capital is a material factor, so the UBT applies to the full DC-sourced profit.

An LLC that elects C-corp treatment with the IRS files Form D-20 instead of D-30 and pays DC corporate franchise tax at the same 8.3% rate with the same $250 or $1,000 minimum. General sales and use tax is 6.0%, with higher tiered rates on prepared food and drinks (10%), off-premises liquor (10.25%), lodging (15.95%), and parking (18%). DC personal income tax brackets run 4% to 10.75% on members' distributive share.

Ongoing compliance and costs after year one

Budget $300 every two years for the biennial report under D.C. Code §29-102.11, plus $50 to $125 a year for a commercial registered agent. The first biennial report is due April 1 of the year after formation, and the next one is due April 1 two years later. Late filings trigger a $100 late fee and eventually administrative dissolution. On a per-year basis the report works out to $150, which is reasonable.

The variable is the UBT. A professional services LLC that qualifies for the 80% exemption pays nothing at the entity level. A product company or DC real estate LLC pays the $250 or $1,000 minimum every year it is above the $12,000 gross threshold, plus 8.25% of DC-sourced net income above that, less the 30% salary allowance and $5,000 exemption. Budget accordingly before you form; the UBT is not optional if you are not exempt.

A non-resident forming in DC for out-of-DC work also owes the home-state foreign LLC fee and annual report, and the UBT apportioning rule means you only pay UBT on DC-sourced income anyway, so forming in DC for non-DC activity generally adds cost without a tax benefit.

Common mistakes forming a District of Columbia LLC

Two patterns come up often. First, assuming UBT is a flat annual fee like Delaware's $300 or California's $800. It is not. UBT is a real income tax on DC-sourced net profit with a $250 or $1,000 minimum floor, and product and real estate LLCs can owe significantly more than the floor. Plug your expected DC net income into Form D-30 before you assume the minimum is your total exposure. Second, treating the biennial report as annual. DC is one of a handful of jurisdictions that runs on a two-year cycle, due April 1 every other year. Setting a calendar reminder for every April 1 is fine, but do not panic and file twice; the portal will hold you to the two-year schedule regardless.

State agencies that handle District of Columbia LLCs

DC Department of Licensing and Consumer Protection, Corporations Division

Website: dlcp.dc.gov
Phone: (202) 671-4500
Email: dlcp@dc.gov
Mail: 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

DC Office of Tax and Revenue

Website: otr.cfo.dc.gov
Phone: (202) 727-4829
Email: e-services.otr@dc.gov
Mail: 1101 4th Street, SW, Suite 270 West, Washington, DC 20024
Hours: 8:15 AM to 5:30 PM Eastern, Monday to Friday

Frequently Asked Questions

How much does it cost to form an LLC in DC in 2026?

The filing fee for the Articles of Organization (Form DLC-1) is $99, paid once to the DC Department of Licensing and Consumer Protection. Plan another $50 to $125 per year for a commercial registered agent if you are not serving as your own. If you elect expedited service, 3-day costs $50 and same-day costs $100 on top of the filing fee.
Does DC have an annual report for LLCs?

No, it runs on a two-year cycle. DC LLCs file a biennial report every two years under D.C. Code §29-102.11, with the first one due April 1 of the year after formation and each subsequent one due April 1 two years later. The fee is $300, which works out to $150 per year. A $100 late fee applies after April 1 and continued non-filing leads to administrative dissolution.
Do DC LLCs pay state income tax?

DC imposes the Unincorporated Business Franchise Tax (UBT) on LLCs that are not taxed as C corporations federally. The rate is 8.25% on DC-sourced net income, with a $250 minimum when DC gross receipts are $1 million or less, and $1,000 when they exceed $1 million. Filing is required once DC-source gross income exceeds $12,000 in a year. An 80% personal-services exemption under D.C. Code §47-1808.01 takes many consulting, legal, medical, and creative LLCs out of the tax entirely.
Who qualifies for the DC UBT 80% exemption?

An unincorporated business is exempt from UBT if more than 80% of gross income comes from personal services actually rendered by the owners or members, and capital is not a material income-producing factor. That typically covers single-member consulting LLCs, two-member law firms, solo medical practices, photographers, designers, and tutors. It does not cover product companies, restaurants, real estate LLCs, or contractors with meaningful equipment and inventory, because capital is material for those businesses.
How long does it take to form a DC LLC?

Online filings through CorpOnline typically clear in about 5 business days. Mail filings to the DLCP Corporations Division take closer to 21 business days, which is on the slow end for US jurisdictions. DC sells expedited service at two tiers: $50 for 3-day and $100 for same-day, both on top of the regular filing fee.
Should I form my LLC in DC instead of my home state?

Only if you actually live or operate in DC. UBT apportions to DC-sourced income, so forming here for non-DC activity does not create a DC tax obligation but it does stack the biennial report, foreign registration back home, and Clean Hands compliance on top of your home state's filings. For non-residents looking for a low-friction wrapper, Wyoming is cheaper; for DC residents, forming in DC is the right call.
Does DC require an operating agreement?

No. D.C. Code §29-801.07 permits an operating agreement but does not require one, and §29-801.02 allows it to be oral, implied, or in a record. Any multi-member DC LLC should still have a written agreement to override the statutory defaults and to satisfy banks when you open an account. It does not need to be filed with DLCP.
What is a Clean Hands certificate and do DC LLCs need one?

Clean Hands is DC's way of confirming a business has no outstanding tax or regulatory debt above $100 to any DC agency. It is required before DLCP will issue or renew certain licenses and before the government will do business with the entity, and it is pulled from MyTax.DC.gov after the LLC registers a tax account. Landlords, clients, and banks sometimes also ask to see one. Keeping Clean Hands means staying current on UBT (if applicable), sales tax, and other DC obligations.
How do I apply for an LLC in District of Columbia?

Apply for an LLC in District of Columbia by filing Articles of Organization for Domestic Limited Liability Company (Form DLC-1) with DC Department of Licensing and Consumer Protection, Corporations Division. The filing fee is $99. Online filing is available through the state portal. Approval typically takes 5 business days online. Mail filings take about 21 business days. Before filing, pick a registered agent (see the District of Columbia registered agent guide) and confirm your business name is available using the state's entity search.

Compare District of Columbia to another state

Side-by-side breakdowns of fees, taxes, approval time, and compliance. Every other US jurisdiction has a dedicated compare page against District of Columbia.

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District of Columbia vs Louisiana

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District of Columbia vs Pennsylvania

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District of Columbia vs Rhode Island

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District of Columbia vs Utah

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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.

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