Does District of Columbia have a state income tax?

Yes, District of Columbia has a personal income tax rate of 4%-10.75% and a corporate tax rate of 8.25%.

Do I need an EIN to start a business in District of Columbia?

Yes, most businesses need an EIN (Employer Identification Number). It's free from the IRS — apply online at IRS.gov and receive it immediately.

How to Start a Business in District of Columbia

Q: How long does it take to form a business in District of Columbia?

District of Columbia typically processes business filings in 3-5 business days. Online filing is available through the DCRA.

Everything you need to form an LLC or Corporation in District of Columbia — filing fees, tax rates, and step-by-step instructions.

$99

LLC Filing Fee

$220

Corp Filing Fee

4%-10.75%

Income Tax

3-5

Days to File

Steps to Start a Business in District of Columbia

Choose Your Business Structure

Decide between LLC, Corporation, S-Corp, Sole Proprietorship, or Partnership. LLCs are the most popular choice in District of Columbia for their simplicity and liability protection.

Choose a Business Name

Your business name must be unique in District of Columbia. Search the DCRA database to check availability. For LLCs, the name must include 'LLC' or 'Limited Liability Company.'

Appoint a Registered Agent

Every District of Columbia business needs a registered agent — a person or service with a physical address in District of Columbia who receives legal documents on your behalf.

File with the DCRA

File your Articles of Organization (LLC) or Articles of Incorporation (Corp) with the District of Columbia DCRA. Filing fee: $99 for LLC, $220 for Corp.

Get Your EIN

Apply for a free Employer Identification Number (EIN) from the IRS. Takes minutes online at IRS.gov. You'll need this for taxes, banking, and hiring.

Open a Business Bank Account

Separate your business and personal finances. You'll need your EIN, formation documents, and operating agreement. Holdings makes this easy with integrated banking.

Business Entity Types in District of Columbia

LLC

Corporation

Corporation (C-Corp)

Businesses planning to raise venture capital, go public, or have complex ownership structures.

District of Columbia filing fee: $220

S-Corp

S Corporation

Small businesses wanting to reduce self-employment tax while keeping pass-through taxation. Must meet IRS eligibility (≤100 shareholders, US citizens/residents only).

Sole Proprietorship

Solo freelancers and contractors. No state filing required but offers no liability protection.

Partnership

General Partnership

Two or more people starting a business together. Consider an LLC instead for liability protection.

Nonprofit

Nonprofit Corporation

Organizations with charitable, educational, or religious missions seeking 501(c)(3) tax-exempt status.

Getting an EIN in District of Columbia

An Employer Identification Number (EIN) is a 9-digit number assigned by the IRS to identify your business for tax purposes.

Free

IRS Filing Cost

Instant

Online Application

9 Digits

EIN Format

Apply for EIN at IRS.gov →

District of Columbia Business Taxes

Corporate Tax Rate	8.25%
Personal Income Tax	4%-10.75%
Annual Report Fee	$300

Official District of Columbia Resources

🏛️

DCRA

File your business formation documents

📋

IRS EIN Application

Get your free EIN online instantly

Frequently Asked Questions

How much does it cost to start an LLC in District of Columbia?

Filing an LLC in District of Columbia costs $99 with the DCRA. You'll also pay $300 annually for the annual report. Add $50–$300/year if you hire a registered agent service.

How long does it take to form a business in District of Columbia?

District of Columbia typically processes filings in 3-5 business days. Online filing is available and generally faster.

Do I need a registered agent in District of Columbia?

Yes. Every business entity in District of Columbia must have a registered agent — a person or service with a physical address in District of Columbia who can receive legal and tax documents on your behalf. You can serve as your own registered agent if you have a District of Columbia address.

Should I form an LLC or Corporation in District of Columbia?

For most small businesses, an LLC is the better choice — simpler management, flexible taxation, and personal liability protection. Choose a Corporation if you plan to raise venture capital or go public. In District of Columbia, an LLC costs $99 to file vs $220 for a Corporation.

Start a Business in Other States

Alabama LLC: $200 Alaska LLC: $250 Arizona LLC: $50 Arkansas LLC: $45 California LLC: $70 Colorado LLC: $50

View all 51 states →

Related Resources

NAICSFind Your NAICS Code for Registration GlossaryWhat Is an EIN? (Employer ID Number)GlossaryWhat Is a DBA?FeesCompare Business Bank Accounts

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