Looking to start an LLC in the District of Columbia? This handy guide has the info you need to get up and running.
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by Rudri Bhatt Patel
Rudri Bhatt Patel is a former attorney turned writer and editor. Prior to attending law school, she graduat...
Updated on: March 21, 2024 · 6 min read
A limited liability company (LLC) offers liability protection and tax advantages, among other benefits for small businesses.
LLC formation in the District of Columbia is easy. Just follow these eight steps and you'll be on your way.
You'll need to choose a name to include in your articles before you can register your LLC.
Names must comply with District of Columbia's naming requirements. The following are the most important requirements to keep in mind:
See a complete listing of District of Columbia's naming rules.
The District of Columbia requires you to appoint a registered agent for your LLC.
A registered agent is the LLC's official contact. This is the person or entity who will receive legal documents, government correspondence, tax forms, as well as notice of lawsuits on the LLC's behalf.
A registered agent can be a person (including yourself or an employee of your LLC), or an entity that offers a registered agent service. They must meet the following criteria:
The articles of organization is a document that officially establishes your LLC by laying out basic information about it.
Prepare articles of organization and file them with the District of Columbia Corporations Division to properly register your District of Columbia LLC. Though it sounds like a big job, that simply means filling out a relatively simple online form and submitting it. You can also send it by mail or submit in person.
To prepare your articles, you'll usually need the following information:
Once you file your Articles, the secretary of state will review the filing. If the articles are approved, the LLC becomes a legal business entity.
Once your LLC is approved, the state will send a stamped and approved copy of your articles of organization as well as a certificate of organization with an official DC seal. If you filed your LLC application online, you'll be able to download these documents online.
This certificate will allow the LLC to obtain an Employer Identification Number (EIN), business licenses, and business bank account.
An operating agreement is a document that outlines the way your LLC will conduct business.
District of Columbia doesn't require an operating agreement but it is an essential component of your business. Having a readily accessible, written operating agreement is helpful for a variety of reasons including settling disputes that may arise over financial agreements and other potential litigation. Without an agreement in place, the courts make determinations based on state law, not necessarily what is in the best interest of the LLC and its members.
The operating agreement can include, but is not limited to, the following:
To conduct business legally in the District of Columbia, you must acquire a business license. The type of license will be dependent on the business. In most cases, you will beed a Basic Business License. In many cases, you'll need a Basic Business License (BBL). For more information check the Basic Business License (BBL) on the District of Columbia's website.
The nine-digit Employer Identification Number (EIN) is assigned by the Internal Revenue Service to identify your LLC for taxes. You can obtain your EIN by mail or online through the IRS.
The purpose of an EIN is to assist with the following:
An LLC in the District of Columbia must submit a report biannually with the Department of Consumer and Regulatory Affairs. It must include the following:
The initial biennial report must be filed by April 1 of the year following the calendar year the LLC was formed or registered to do business in the District of Columbia. Any subsequent biennial report must be filed by April 1 of each second calendar year.
Registering your LLC gives you a legal foundation to conduct business. Plan to keep your LLC compliant and in active status on the state's website.
This might include making quarterly tax payment. You also need to maintain a registered agent for your business.
A registered LLC also makes it possible for you to do the following:
Every state has different rules, costs, and considerations for LLC formation.
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