Free guide · District of Columbia

How to start a business in District of Columbia.

Business formation in District of Columbia runs through the DC Department of Licensing and Consumer Protection, the official government office. You can file there directly for just the state's own filing fee, and nobody can legalize your business "better" than the state itself. Fees change, so the current number is always on the official site.

The six steps, in order

1. 1

   Pick your business structure

   Most first businesses in District of Columbia choose an LLC for the liability separation between the business and your personal life. Sole proprietorships are simpler but offer no separation; corporations fit businesses raising investment.

2. 2

   Check that your business name is free

   Search the DC Department of Licensing and Consumer Protection's business registry to confirm nobody in District of Columbia already holds the name, and check the matching web domain at the same time. Our free name generator checks the domain with every name it suggests.

3. 3

   File your formation documents with the DC Department of Licensing and Consumer Protection

   This is the official step that makes the business real. File directly on the state's own site and pay only District of Columbia's filing fee. Every state requires a registered agent with a physical address in the state; if you live in District of Columbia, you can usually be your own.

4. 4

   Get your EIN free from the IRS

   The Employer Identification Number is the business's tax ID. The IRS issues it directly at irs.gov in about five minutes, at no charge. Never pay anyone for an EIN alone. Get the EIN at irs.gov ↗

5. 5

   Check for licenses and permits

   Many businesses also need a city or county business license, and some industries need District of Columbia state licenses. The DC Department of Licensing and Consumer Protection's site and your city hall list what applies.

6. 6

   Open the business bank account and connect payments

   Keep business money separate from day one: it protects the legal separation your LLC exists for and keeps taxes clean. Bring your EIN and formation documents to the bank. Our free Get Paid directory lists business banks and payment processors in the order to set them up.