What is a Limited Liability Company?
Frequently asked questions about starting and running an LLC, or limited liability company.
When forming a company in Washington, D.C., many new business owners choose to create a limited liability company (LLC). An LLC offers many benefits, such as limited liability for owners, flexible management structures, and various tax benefits.
If you're looking to start an LLC in Washington, D.C., you'll need to follow these essential steps. For more information on how to form an LLC in any state, check out our article on how to start an LLC. You can also use our online LLC formation service to register your LLC.
As you start forming your LLC, you'll want to choose a business name. When you select a business name, you must follow Washington D.C.'s laws for LLC names.
LLC name must be distinguishable. You must pick a name for your LLC's name that's distinguishable (different) from the names of other business entities already on file with the D.C. Department of Licensing and Consumer Protection (DLCP). You can check which names have already been taken using CorpOnline. To use CorpOnline, you must have an Access DC account. (D.C. Code § 29-103.01 (2025).)
LLC name must include an entity designator. Under D.C. law, an LLC must contain the words "limited liability company" or "limited company," or the abbreviation "L.L.C.," "L.C.," "LLC," or "LC." You can abbreviate the words "limited" as "Ltd." and "company" as "Co." (D.C. Code § 29-103.02 (2025).)
Name reservation. You can reserve an available name for 120 days by filing a Name Reservation Registration & Transfer Form (Form GN-3) with the DLCP. You can file the application online via CorpOnline or by mail. As of 2025, the filing fee to reserve an LLC name is $50. (D.C. Code § 29-103.03 (2025).)
Using a trade name. You don't have to use your LLC's official legal name registered in your articles of organization when you do business out in the real world. Instead, you can use a trade name, also called a "DBA" (short for "doing business as"), "assumed name," or "fictitious name." If you do use a name other than your business's legal name, you must register your trade name with the DLCP. To register your name, file a Trade Name Registration Form (Form TN-1) with the DLCP. You can file the form online via CorpOnline. As of 2025, the fee to register a trade name is $55. (D.C. Code §§ 47-2855.01 and following (2025).)
Every D.C. LLC must have an agent for service of process in the district—known as a "registered agent." A "registered agent" is an individual or business entity that agrees to accept legal papers on the LLC's behalf if it's sued. They must have a place of business in the state and accept the designation.
In general, the agent must be either:
Commercial registered agents must file a commercial registered agent listing statement with the DLCP.
(D.C. Code §§ 29-104.01 and following (2025).)
You can create a Washington D.C. LLC by filing Articles of Organization (Form DLC-1) with the DLCP. The articles must include the following information:
(D.C. Code § 29-802.01 (2025).)
The articles will request additional information about your LLC.
You can file the certificate online via CorpOnline or by mail. As of 2025, the filing fee for Washington, D.C. Articles of Organization is $99.
Washington, like most states, doesn't require LLCs to adopt anoperating agreement. Though not legally required, it's still important to create an agreement. An operating agreement—like bylaws for a corporation—will establish the rules and procedures for how your LLC will operate, including your LLC's management structure.
The agreement lets you make your own rules for your LLC. When someone becomes a member of an LLC with an operating agreement, that member automatically becomes bound by the agreement. Without an operating agreement, D.C.'s default LLC laws will govern how your LLC operates.
Under Washington, D.C. law, an operating agreement should govern:
(D.C. Code § 29-801.07 (2025).)
Your LLC's operating agreement is an internal organizational document. You don't need to file it with the state. But you should put this important document in writing.
For help creating an LLC operating agreement, you can use our online LLC formation service.
Your LLC will likely need to comply with tax and regulatory requirements, including applying for business licenses and permits and registering for other business taxes.
EIN. If your LLC has more than one member, it must obtain a federal employer identification number (EIN), even if it has no employees. If you form a single-member LLC, you must obtain an EIN only if you'll have employees or you elect to have your LLC taxed as a corporation instead of a sole proprietorship (disregarded entity). You can obtain an EIN by completing an online EIN application on the IRS website. There's no filing fee.
Business licenses. Depending on your business activities, your LLC might need to obtain a basic business license. You can find a list of business licensing categories on the DLCP's Business Licensing Division page. You can apply for a license via the DC Business Licensing Portal. Be sure you and your business have all necessary operational, tax, and professional licenses and all required zoning and building permits.
Office of Tax and Revenue. In some cases, for example, if you have employees or will be selling goods and collecting sales tax, you'll need to register your business with the Office of Tax and Revenue. You can register your LLC to file and pay taxes online via MyTax DC. Unless your LLC primarily provides personal services, you might also have to pay the District's unincorporated business franchise tax. For more information on state LLC taxes, check out our article on LLC annual report and tax filing requirements in Washington, D.C.
Here are some other questions you might have about your Washington, D.C. LLC.
If you're just starting your business or have already been operating as a sole proprietor, you should consider forming an LLC. LLCs limit an owner's personal liability for business debts and lawsuits and offer a lot of flexibility when it comes to ownership, management, and taxation of the business.
To learn more about LLCs and decide if it's the right business structure for you, see our article on LLC basics.
Below are the fees (as of 2025) you might need to pay to form your LLC in Washington, D.C.:
Filing on your own is often the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another option, but it will often cost you hundreds, if not thousands, of dollars in the process. If you'd like help completing all the filings, try our online LLC formation service.
To learn more about the costs associated with forming and running an LLC, see our article on how much it costs to form an LLC.
Yes. Every LLC must file a biennial report with the DLCP. The report is due every two years by April 1. The first report is due the first calendar year following the LLC's formation. For example, if you formed your LLC on September 9, 2020, then your first report would be due on April 1, 2021. Subsequent reports would be due by April 1, 2023, 2025, and so on. (D.C. Code § 29-102.11 (2025).)
You can file your biennial report online through CorpOnline. You can also mail or hand deliver Form BRA-25 to the DLCP. As of 2025, the fee to file a biennial report for your LLC is $300.
For more details, see our article on LLC biennial reports and tax filing requirements in Washington, D.C..
Apart from biennial reports, your LLC will need to file and pay applicable taxes to the local, state, and federal governments. In addition, your LLC might need to obtain and periodically renew any required general or special business licenses or permits. You'll be responsible for keeping track of these maintenance requirements to keep your LLC in good standing and legally compliant.
Starting in 2024, all LLCs were previously required to submit a beneficial ownership information (BOI) report to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. However, in March 2025, after some constitutional challenges, FinCEN revised the BOI reporting rule so that the requirement only applies to companies created outside the U.S. So, if you form your LLC within the U.S., then you no longer need to worry about the BOI reporting requirement.
You're not required to have an operating agreement for your LLC in Washington, D.C. Though, it's highly advisable to have one. An operating agreement can help protect your limited liability status, prevent financial and managerial misunderstandings among members, and ensure that you choose the rules that govern your business instead of your state's default rules.
Yes. To do business in Washington, D.C., all LLCs organized outside of the District (called "foreign LLCs") must register with the DLCP. Your foreign LLC must appoint a registered agent for service of process that's physically located in Washington, D.C.
To register, file a Foreign Registration Statement (Form FN-1) with the DLCP. Along with your statement, you must include a certificate of good standing, certificate of existence, or a similar document from your home state that's no more than 90 days old.
You can file the application online using CorpOnline or deliver Form FN-1 by mail or in-person to the DLCP. As of 2025, the filing fee to register your foreign LLC in Washington, D.C. is $220.
Before filing, make sure your LLC's name is available in Washington, D.C. If the name isn't available, your foreign LLC must adopt an alternate name to use in the District. You'll indicate your LLC's alternate name in your Foreign Registration Statement.
(D.C. Code §§ 29-105.01 and following (2025).)
See our article on qualifying to do business outside your state for more guidance.
Yes. For most formation purposes, a Washington, D.C. single-member LLC is considered the same as a multi-member LLC. The steps to form a single-member LLC in Washington, D.C. are generally the same as those listed above.
Single-member LLCs do have additional flexibility when it comes to filing a tax return. To learn more, see our article on how single-member LLCs pay federal income tax.
Yes. If you provide a licensed professional service in Washington, D.C. and want to form an LLC, you can form a professional LLC (PLLC). A "professional service" is any type of personal service to the public including services performed by certified public accountants, attorneys, architects, professional engineers, dentists, optometrists, podiatrists, and other health professionals. (D.C. Code § 29-502 (2025).)
You can form a PLLC by filing Articles of Organization (Form DLC-1) with the DLCP. In your articles, you'll need to specify the type of professional service your PLLC will provide. In addition, your PLLC's name must end in "Professional Limited Liability Company," "P.L.L.C.," or "PLLC."
You can submit your articles online using CorpOnline. As of 2025, the fee to form a PLLC in Washington, D.C. is $99.
If you reach the point where it's time to close your business and cease all operations, then you'll want to properly dissolve your LLC to limit your liability for lawsuits and government fees. To dissolve an LLC in Washington, D.C., you should:
(D.C. Code §§ 29-807.01 and following (2025).)
You'll also need to close your tax accounts and take any other steps necessary to close out your business. See our article on what you need to do when closing your business for more in-depth information and guidance.
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