Steps to Start a DC LLC
To start a DC LLC, choose a name, registered agent, and file paperwork for $99. You also need an EIN to open a bank account and file taxes, taking 1-2 weeks. Use a service to simplify address changes. DC recognizes LLCs. File a $300 report every 2 years by April 1st.
Requirements for a DC LLC
DC LLC requirements grant small businesses corporate advantages and protections. When choosing an LLC name, include “LLC” and ensure it won’t confuse with a government agency. Make it memorable and searchable by clients.
Operating a DC LLC
Your LLC receives an effective date upon filing articles of organization, expedited for a small fee. Creating an operating agreement protects your business. State fees range from $220-$370.
Recognizing DC LLCs
Yes, DC recognizes LLCs. If purchasing out-of-state real estate, form your LLC there. The main cost to start a DC LLC is a $99 filing fee. Also file a $300 report every 2 years. To hold an LLC name, file a Name Reservation Form for 180 days before registering.
Roles of a Registered Agent
Hiring a Registered Agent in DC is a must since a Registered Agent is responsible for receiving important legal documents on behalf of your DC LLC. Most states require you to designate a Registered Agent when forming your LLC.
Responsibilities of a Registered Agent
A registered agent accepts service of process and other vital messages. Get a year of registered agent services free when forming a DC LLC through Northwest ($29 plus state fees).
Filing and Compliance
When starting a DC LLC, account for filing costs. LLCs must file annual reports with the Department of Consumer and Regulatory Affairs. Failing to file risks dissolution or penalties.
Starting an LLC in Washington DC
For entrepreneurs wanting to start a business in Washington DC, creating a Washington DC limited liability company (LLC) is generally the fastest and easiest way. With more simplified rules and regulations, an LLC is an ideal business entity for startups and small to medium-sized businesses, granting you the advantages and protections that larger District of Columbia corporations benefit from.
Naming Your LLC
When choosing a name, there are a few searches that you need to complete before you settle on the final option:
- Your name must include the phrase “limited liability company,” “limited company,” “professional limited liability company” or any accepted abbreviation: “PLLC, LLC, L.L.C., LC, or L.C.” Your name cannot include words that could confuse your LLC with a government agency; examples of such words include “Treasury,” “FBI,” and “State.”
- This will need to comply with all applicable naming requirements under Washington DC law and be both succinct and memorable, as this will make it easily searchable by your potential clients.
Costs and Requirements
The state fees range between $220 and $370 in Washington DC, but those are subject to change by the Secretary of State.
Additional Steps for Formation
After your LLC is formed, creating an operating agreement, while not mandatory, is a step I strongly recommend.
Recognizing LLCs in Washington DC
Does DC recognize LLCs? Yes, Washington DC recognizes LLCs.
Establishing Your Entity
If you’re purchasing real estate outside of Washington, you should form your LLC in the state where the property is located.
Creating an LLC Name
If there is an LLC name you want to use, but you are not ready to register the LLC, file the Name Reservation Form with the Secretary of State to hold the name for up to 180 days.
Benefits of a Washington DC LLC
A Washington DC limited liability company (LLC) offers the benefits of limited liability protection and tax options. We’re here to help you get started in just 5 steps with this Checklist for Starting an LLC in Washington DC.
Overview of LLC Legislation
The procedures for forming and operating a Washington D.C. limited liability corporation (LLC) are outlined in the city’s LLC legislation. In this guide, we provide straightforward explanations of Washington D.C. LLC legislation such as: Requirements for forming an LLC Duties of a Registered Agent and Appointment Operating Agreements Requirements for Biennial Reports.
Importance of a Registered Agent
Why do I need a registered agent in DC? A Washington D.C. registered agent is the legally designated point of contact for your business or nonprofit.
DIY Registered Agent
Can I be my own registered agent in DC? If you work from home, or even a private office, and act as your own registered agent, your address will be published publicly on the District of Columbia Business Entity Search.
Formation Process in DC
To start an LLC in DC, you’ll need to choose a DC registered agent, file business formation paperwork with the DC Department of Licensing and Consumer Protection (DLCP), and pay a $99 state filing fee.
Non-commercial Registered Agent
What is a non-commercial registered agent in DC? A registered agent receives legal notices for your business. Registered agents ensure your home address remains private. A registered agent in DC needs a street address to receive legal documents. Choose a reliable registered agent available during business hours. Both foreign and domestic LLCs require a registered agent in DC.
Simplified Startup Process
To start a DC LLC, choose a name, registered agent, file paperwork, and pay a $99 state filing fee. We’ve outlined the 7 steps to quickly start a compliant LLC.