Do I Need To Register My Business In Dc

In that location are 8 steps to starting a business in Washington DC:

Cull a name for your concern
Choose the right type of business entity
Register your business with the Department of Consumer & Regulatory Affairs
Become your EIN Number (Federal Tax ID Number)
Open a business depository financial institution account
Register for taxes with the Office of Tax & Revenue
Get a Certificate of Occupancy or a Dwelling house Occupation Permit
Go a Basic Business organization License

We'll prove you lot how to complete each step below. We will likewise give yous some tips to brand starting your business in Washington DC easier.

Step one: Cull a Name for Your DC Business

Choosing a name for your Washington DC business concern is not something you want to breeze through. In fact, rushing the procedure of choosing your business proper name can be a large mistake.

We recommend taking some time to cull a name people will call up and positively associate with your business.

To make sure your business is worth remembering, you lot should cull a name that:

rhymes or contains ingemination (ex: Piggly Wiggly, Dunkin' Donuts)
speaks nearly the benefits of your business organization
you can say it with pride
is like shooting fish in a barrel to pronounce
has a positive connotation for your potential customers
and ideally, is available every bit a ".com" domain name

By the way, the first bullet point above refers to the phonological loop. Your brain can better remember words that rhyme and sound similar.

For additional business concern naming tips, check out how to choose a proficient business name.

After yous've thought of a few business organization names, you can search them on the Washington DC Business Name Search. This search folio is available inside CorpOnline (an Access DC login is required).

How to notice a good domain name:
Check out TRUIC's Business organisation Name Generator. Only enter one or 2 fundamental terms relevant to your business, and the tool will come up upwards with a list of domain names that are non only bachelor, but are also easy to spell and remember.

Check out our Business Domain Name Guide for tips on picking a domain name and a step-by-footstep guide to ownership the domain name through GoDaddy.

Step 2: Choose the Correct Type of Business Entity

Side by side, you'll need to decide the best blazon of legal structure for your Washington DC concern.

The most common business structures are:

Sole Proprietorship
Partnership
Corporation
Express Liability Company (LLC)

Sole Proprietorship in Washington DC: Happens when you lot operate your business organization as yourself. There is no separate legal entity created; the police treats y'all and your business organization as one person. Yous are responsible and personally liable for all business activities or wrongdoing.

Washington DC Partnership: The same thing as a Sole Proprietorship, simply just with 2 or more people. Similar a Sole Proprietorship, a Partnership doesn't create a dissever legal entity and the partners are responsible and personally liable for any business activity or wrongdoing.

Washington DC Corporation: A more circuitous legal structure that requires a board of directors, corporate officers, and shareholders. Corporations don't normally work for nearly small business organisation owners since they face double taxation. Corporations can exist beneficial to companies that are looking to raise capital investment, have the company public, or have large healthcare expenses for their employees. The nigh mutual types of companies that form Corporations are high-growth technology and startup companies.

Different a Sole Proprietorship or a Partnership, a Corporation is a separate legal entity from its owners (called shareholders). It provides them with personal liability protection.

Washington DC LLC:A legal entity that combines the benefits of a Corporation and a Sole Proprietorship/Partnership.

An LLC in Washington DC is a separate legal entity under the constabulary. And like a Corporation, it provides personal liability protection for the owners. If the LLC is sued, the owner's personal assets – like their home, cars, and bank accounts – are protected. And like a Sole Proprietorship/Partnership, an LLC has pass-through taxation (so there's no double taxation).

A Washington DC LLC is the most popular option and a expert choice for people who desire to run a small business for two reasons:

Personal liability protection (personal assets are kept safe)
No double taxation

Unlike a Sole Proprietorship (and a Partnership), your Washington DC LLC'south assets are separate and distinct from your personal assets. In the event your LLC gets sued, your personal assets are protected.

And unlike a Corporation, your LLC is not subject to double taxation. Instead, your LLC'due south profits will "laissez passer-through" to your personal revenue enhancement return and federal taxes are paid just in one case.

For more than details, on which is the all-time entity type for you, please see:
LLC vs Sole Proprietorship vs Corporation

If you want to class an LLC in Washington DC, we have instructions here: Washington DC LLC formation.

If you want to form a Corporation in Washington DC, you tin can file information technology yourself or you can hire a filing company like Northwest Registered Amanuensis.

Step three: Register Your Concern with the DCRA

You may need to file business formation documents with the Section of Consumer & Regulatory Affairs (DCRA) in club to properly register your business in the District.

Regardless of what type of business structure you cull in DC though, all businesses must obtain a Document of Occupancy or a Dwelling Occupation Permit every bit well as get a Basic Business License (BBL). These are discussed further below on this page.

Washington DC LLC:

The cost to course a Washington DC LLC is $99.

Class: DLC-1 (Manufactures of Organization)

Biennial Study: In lodge for a DC LLC to remain in good standing, it must file a Biennial Written report every 2 years. The LLC Biennial Report fee is $300.

Washington DC Corporation:

For most people, the cost to form a Washington DC Corporation is $99.

Grade: DBU-ane (Articles of Incorporation)

The $99 is the "starting" filing fee amount if your Corporation's authorized uppercase is valued at $100,000 or less. Filing fees increment based on the value of the authorized capital:

authorized upper-case letter $100,000 or less = $99 filing fee
authorized capital $100,001 – $500,000 = $550 filing fee
authorized capital $500,001 – $1,000,000 = $i,100 filing fee
authorized capital $ane,000,001 or more than = $1,650 filing fee

Authorized capital: Authorized capital is but the total value of all shares that your Corporation issues. To calculate: multiply the full number of shares (all classes) by the par value per share.

Biennial Written report: In order for a DC Corporation to remain in skillful continuing, it must file a Biennial Written report every 2 years. The Corporation Biennial Report fee is $300.

Washington DC Sole Proprietorship or Partnership:

Unlike a Washington DC LLC and a Washington DC Corporation, if you choose to operate your business organization as a Sole Proprietorship (1 possessor) or a Partnership (2 or more than owners), y'all don't take to file any "germination" documents with the DCRA.

However, if you lot would similar for your Sole Proprietorship or Partnership to operate and do business under a name too the first and last proper noun of the owner(south), yous'll demand to annals a Trade Name in the Commune, also known every bit a DBA/"Doing Business As".

For example: If John Doe wants to operate a Sole Proprietorship in Washington DC, but wants to operate under the name "John's Remodeling Company", he must annals this as a Merchandise Proper name.

Washington DC Trade Proper noun:

Form: TN-one (Trade Proper noun Registration Form)

Fee: The cost to register a Trade Name in DC is $55.

Renewal: Merchandise Names must be renewed every 2 years by April 1st. The form is called TN-2 (Merchandise Name Renewal Class) and the cost is $55.

Is a Trade Name needed for an LLC or Corporation?
If you're going to form an LLC or Corporation in Washington DC and operate under the LLC or Corporation'due south truthful name, you don't have to file a Trade Proper name/DBA (unless y'all desire your entity to exercise business under a name other than its true name).

For more information on whether or not a Trade Name/DBA is needed for your DC business concern, please see this article: Do I demand a DBA?

Is there a newspaper publishing requirement for a DC Trade Proper noun?
Dissimilar many states that require you to publish an ad in a newspaper later registering a Trade Proper name, this is not a requirement in Washington DC.

If yous have any questions, you can contact the Washington DCRA:

Department of Consumer & Regulatory Affairs
Telephone: 202-442-4400
E-mail: dcra@dc.gov
Website: https://dcra.dc.gov/

Step iv: Get an EIN Number

An EIN Number is too known as an Employer Identification Number (EIN) or Federal Tax ID Number (FEIN). It is used by the IRS to identify your Washington DC business for revenue enhancement purposes.

Recollect of your EIN Number as the "social security number" of your Washington DC business.

The EIN Number for your Washington DC business organisation will be used to open up a banking concern account, file taxes, get financing, and handle employee payroll (if applicable).

You can get an EIN for your Washington DC business by mail service, fax, or online. Getting your EIN online is the fastest option, since it only takes about 15 minutes to complete the application.

Y'all can access the IRS EIN Online Application here:
https://www.irs.gov/businesses/pocket-size-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

For instructions on how to complete the online EIN application for a Washington DC LLC, delight meet here: District of Columbia LLC EIN Number.

Notation: Brand sure your LLC or Corporation is approved before applying for an EIN Number.

Step 5: Open a Business Depository financial institution Account

A concern bank account (and a business debit/credit card) for your Washington DC business is important because:

information technology keeps your personal assets separate from your business assets
accounting and finances will exist easier to manage

One of the main reasons courts are able to "pierce the corporate veil" is due to the commingling of avails. This is when business and personal finances are mixed together.

Keeping the avails of your Washington DC business separate from your personal assets volition make accounting and documenting expenses a lot easier also.

To learn how to open up a bank account for your Washington DC LLC, you tin can read this lesson: LLC business banking concern account

Your bank will provide y'all with a debit card after the account is open. You tin besides get a business credit bill of fare and earn cash back or other rewards.

Step 6: Register with the Function of Tax & Revenue (OTR)

After your Washington DC business organization is formed, you're required to register it with the DC Part of Taxation & Revenue (OTR).

Form: FR-500

Filing method:
• Done online, via the OTR's online filing portal called MyTax.DC.gov: https://mytax.dc.gov/_/
• Click "Annals a New Concern: Grade FR-500" on the MyTax.DC.gov'due south dwelling page, or endeavour this direct link: https://mytax.dc.gov/?link=FR500

Fee: Registering your Washington DC business organisation for taxation purposes is costless.

Past going through the FR-500, you will be answering a number of questions nigh your DC business. Based on your answers, the online arrangement volition register your business for its applicative taxes and let you know when they demand to exist filed.

Approval: Within well-nigh 1 week the OTR volition postal service you a Notice of Business organization Tax Registration as verification and approving.

Sales tax: If your Washington DC business organization volition sell tangible personal property, y'all're required to collect sales tax from your buyers.

Sales tax help: TaxJar can assistance you lot by automating your sales tax filings in Washington DC.

Other taxes: The in a higher place is a general overview of tax registration in the Commune, even so, there are far more than details that go into taxes.

For case, you take to file D-40 (Individual Income Tax) every twelvemonth as an individual, and depending on how your business is setup in DC, you may demand to file either a:

D-20 (Corporation Franchise Tax Render),
D-30 (Unincorporated Business Franchise Tax Return), or
D-65 (Partnership Return of Income)

Personal Belongings Revenue enhancement: All businesses located in Washington DC must file a FP-31 (Personal Property Tax Render) likewise equally a FP-31P (Personal Property Taxation Return Payment Voucher) if payment is due. Everyone has to file the Personal Property Tax Render, simply you'll only owe a tax if the total value of your business' personal property is $225,000 or more.

Our recommendation is to speak with an accountant:
We recommend working with an accountant to make sure you properly register your business organization for DC taxes, in addition to properly filing any federal, state, and local taxes for which you lot're responsible.

Step 7: Certificate of Occupancy or Home Occupation Let

All businesses in Washington DC must get either a Certificate of Occupancy or a Home Occupation Let in order to legally operate. If not, the Commune imposes fines and penalties.

Certificate of Occupancy (C of O): Used for commercial part infinite. If you lot own a commercial building or are developing a new one, y'all volition need to apply for a new Certificate of Occupancy. If you plan to rent office infinite in DC, y'all likely don't need to apply for a new Document of Occupancy. Instead, speak with the owner or management company and make sure their Certificate of Occupancy allows for your type of business to operate inside its building. You'll want a copy of their Certificate of Occupancy and/or their Document of Occupancy Number.

Home Occupation Permit (HOP): Used for residential space. Yous will need a Home Occupation Permit if you're going to run your business from your home.

Walk-in filing: Both a Certificate of Occupancy and Dwelling Occupation Permit tin be obtained via a walk-in filing at:

DC Permit Center
1100 fourth Street SW
second Floor
Washington, DC 20024

Parking: In that location is a parking garage next to the CVS if you can't find street parking.

Certificate of Occupancy Application:
Certificate of Occupancy (C of O) Application

Certificate of Occupancy Fee: In that location is an application fee ($36.30) and an issuance fee. Your final issuance fee will depend on the square footage of the building. It commonly starts effectually $twoscore to $l. Y'all won't have to pay this fee if you lot're renting office/commercial infinite and the edifice already has a Certificate of Occupancy.

Home Occupation Permit Application:
DCRA: Home Occupation Permit Application

Home Occupation Permit Fee: There is an application fee of $36.xxx and an issuance fee of $36.30, for a total of $72.60.

Footstep viii: Go a Basic Business License

In addition to a Certificate of Occupancy or Domicile Occupation Allow, all businesses in Washington DC must too apply for a Basic Business organisation License (BBL) in order to legally operate. If non, your business will be illegally operating without a license and the District volition impose fines and penalties.

Before you can get a Basic Business License (BBL) for your business organisation, you must:

have your concern entity approval documents from the DCRA (LLCs and Corporations)
go an EIN Number from the IRS
register your business with the Role of Revenue enhancement & Revenue
receive a Certificate of Occupancy or Abode Occupation Permit

Then yous can use for your Basic Business License at the same location where y'all got your Document of Occupancy or Dwelling house Occupation Permit:

Business Licensing Center
1100 4th Street SW
2nd Floor
Washington, DC 20024

Bones Business License Awarding:
https://eservices.dcra.dc.gov/DocumentManagementSystem/Home/recollect?id=BBL%20Application%20(Fillable).pdf

You tin can also apply for a BBL online at My DC Business Middle: https://mybusiness.dc.gov/#/register

Make clean Easily Self-Certification: Y'all'll also need to sign a Make clean Hands Self-Certification letter stating that you don't owe the Part of Tax & Revenue more than $100:
https://eservices.dcra.dc.gov/DocumentManagementSystem/Dwelling/call back?id=BBL%20Clean%20Hands%20Self-Certification%20(Fillable).pdf

Fee: Basic Business License fees start around $200 and go up to $500 (and in some cases up to $1,000). The fees will depend on your business' Endorsement Category. For example, a BBL for operating a rental property is $190 for two years and a BBL for the "general business" category is $325 for ii years.

BBL Renewals: Your Basic Concern License volition be skillful for 2 years before it expires. You must renew your Bones Business organization License every two years and pay the renewal fee.

After Your Washington DC Business organization is Started…

1. Run into with a Local DC Business concern Good for Free Counseling

Getting advice from others who've been there can be helpful in your entrepreneurial journey.

Here are some great organizations in Washington DC:

SCORE
DC Pocket-sized Business Development Centre
DC Pocket-sized Business Resource Center
Anacostia Economic Evolution Corporation
GW Police Small-scale Business & Community Economical Development Clinic
DC Women's Business Center
DC Bar Small Business organisation Legal Assist Program
Department of Modest and Local Business Evolution
Resource Guide for Pocket-sized Businesses (see page 12)
Washington DC Economic Partnership
Alexandria Economic Development Partnership

2. Kickoff a Website

Having a website these days is very helpful for a Washington DC small business organization. It gives your company a professional feel and allows people to learn about your products and services.

Building a website tin can seem like a complicated process. And it will be if you don't take the right information.

However, I've congenital over 130 websites and used to teach people how to use WordPress to build their website. WordPress (which is costless) is the tool I use and recommend. It can exist used to build unproblematic websites or information technology can be used to build more complicated websites, like eCommerce websites.

At that place are four components to starting a website:

Domain registrar
Website hosting
WordPress
WordPress theme

Permit's use the "housing analogy":

The domain registrar is where you purchase your domain name. Think of this as the characterization on the mailbox or your street address.

A website hosting company is where all the code, images, graphics, and text are stored that gets provided to the world. Call back of this as the foundation of your home. It gives y'all the ability to build on meridian of it and display information to others.

WordPress is a CMS (content direction organisation) which makes it easier to build a website. Rather than amalgam your dwelling from scratch, think of WordPress as a prefabricated home where yous can easily resize rooms, move walls, and have consummate flexibility in pattern and customization. WordPress – or the prefabricated domicile – "sits on top of" your foundation (the website hosting).

A WordPress theme is a "design peel" that sits on acme of the WordPress CMS. If the WordPress CMS is the prefabricated home, recall of the theme as all the interior decorations and painting. In that location are gratuitous WordPress themes, but I recommend against them for diverse technical reasons. Instead, I recommend using a premium WordPress theme. The difference between a free WordPress theme and a premium one is the divergence between an amateur designer and a globe-class professional designer.

Here are some links and prices to get y'all started:

Domain registrar: I recommend NameSilo.com which is $x per year (per domain name). This is the service we employ equally it includes domain privacy for gratuitous to keep your accost and telephone number off those public record websites. It'll also help preclude those annoying telemarketing phone calls!

Website hosting: SiteGround.com ($10 per month)

WordPress: This is automatically included (again, for complimentary) with about every hosting company these days. Afterwards you sign upward with SiteGround, merely call them to help you install it. They'll walk you lot through the steps.

WordPress theme: ThemeForest.net (quondam fee of $xl to $60 for a WordPress theme)

Notation 1: Make certain you're using the "wordpress.org" cocky-hosted version. Non the "wordpress.com" version, which is stripped down and comes with limitations on how much you tin customize your website.

Note 2: If you demand help selecting a theme from ThemeForest, here is an explanatory video I fabricated:

How to Search for WordPress Themes on ThemeForest

3. Design a Logo and Go Business Cards

Designing a logo doesn't have to be also complicated.

We recommend starting off with a "words only" logo to keep things simple (no need for any fancy graphics). You can cull the font family and color yourself, or get help from 99 Designs. A cheaper pick is to apply Fiverr.

For some great tips on using a tagline with your logo, check out Neville Medhora's article, however, we recommend not even using a tagline (to showtime) in order to continue things unproblematic. Besides, well-nigh people don't really pay too much attention to a company'south tagline anyway.

And for business cards, I like using Moo.com.

4. Get a Business organisation Phone Number

Instead of giving out/publishing your actual jail cell phone number (or home telephone number), it might be a adept idea to get a "virtual business number" for your Washington DC business. You'll be able to customize the number and so it forwards to your jail cell telephone.

Our favorite visitor is Telephone.com. They have the cheapest plans and the all-time client support.

You lot tin can become a local DC telephone number or you tin get a one-800 number for your concern. Phone.com lets you easily setup call forwarding to whatever number yous similar, create pre-recorded messages, and you can get your voicemails delivered to your electronic mail.

Getting a separate phone number for your Washington DC business organisation is a good idea if you lot'd like to keep your bodily telephone number off of those annoying "public record" websites (and finish the spam phone calls).

I promise this guide has been helpful for you.

Matt Horwitz

Founder & Educator, LLC University®

Matt Horwitz has been the leading expert on LLC teaching for the past decade. He founded LLC University in 2010 subsequently realizing people needed elementary and actionable instructions to start an LLC that other companies weren't offer. He's cited by Entrepreneur Magazine, Yahoo Finance, and the U.s. Sleeping room of Commerce, and was featured by CNBC and InventRight.

Matt holds a Available's Caste in business from Drexel University with a concentration in business law. He performs extensive research and assay to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.