Forming an LLC in
District of Columbia DC
Checked November 4, 2026 · How we score
Filing fee
$99
Articles of Organization
Annual fee
$150
per year, normalised
State income tax
10.75%
top rate
Cost rank
#38
of 51, first-year fees
District of Columbia LLC costs
| Filing fee | $99 |
|---|---|
| Annual report / franchise fee | $150 Biennial report: $300, due April 1 of each odd-numbered year (≈$150 per year). |
| First-year state fees | $249 |
| Registered agent | Required (about $50–$300/year if you don't use your own address in the state) |
| Newspaper publication | No |
| Anonymous ownership | No |
| Processing time | 5 days |
District of Columbia taxes for LLCs
| Personal income tax (top) | 10.75% Graduated 4%–10.75%. |
|---|---|
| Corporate income tax | 8.25% 8.25% on net income. |
| State sales tax | 6% |
| Franchise / gross receipts | Unincorporated business franchise tax (UBT) of 8.25% on LLCs with over $12,000 DC gross income that are taxed as partnerships or sole proprietorships. |
A single-member LLC is a disregarded entity: profit flows to the owner's personal return. Federal income tax applies in every state. Non-US owners without US-source business income generally owe no US income tax but must file Form 5472 with a pro-forma 1120 each year.
Pros and cons
Why form in District of Columbia
- Low $99 formation fee
- Biennial reporting
- Strong federal contracting ecosystem
Watch out for
- 8.25% unincorporated business tax on DC-source income
- High personal income tax
Best for: Government contractors and consultants · DC-based professional services
District of Columbia LLC: common questions
How much does an LLC cost in the District of Columbia?
Filing the Articles of Organization in the District of Columbia costs $99. After that, expect $300 every two years ($150 per year). Biennial report: $300, due April 1 of each odd-numbered year (≈$150 per year). A commercial registered agent, if you need one, is typically $50–$300 a year extra.
Do I need a registered agent in the District of Columbia?
Yes. The District of Columbia requires every LLC to keep a registered agent with a physical street address in the state to accept legal and tax notices. You can act as your own agent if you live there, but non-residents and owners who want privacy usually pay a commercial agent, typically $50–$300 a year.
Can a non-US resident form an LLC in the District of Columbia?
Yes. The District of Columbia does not require US citizenship, residency or an SSN to own an LLC; you need a District of Columbia registered agent address and then an EIN from the IRS (by fax or mail with Form SS-4 if you have no SSN). A foreign-owned single-member LLC must also file Form 5472 with the IRS every year, even with no US income. Check what the District of Columbia publishes, since member or manager names may appear in public filings.
Does the District of Columbia have a state income tax?
Yes. Graduated 4%–10.75%. LLC profits normally pass through to the owners' personal returns. Corporate income tax: 8.25% on net income.
What is the DC unincorporated business franchise tax?
DC charges unincorporated businesses, including LLCs taxed as partnerships or sole proprietorships, an 8.25% tax on net DC income once gross income exceeds $12,000. LLCs electing corporate tax treatment pay the corporate franchise tax instead.
Sources
District of Columbia Secretary of State business filings
- District of Columbia Secretary of State / business filing office
- Tax Foundation – 2026 state income tax rates
- LLC University – LLC filing and annual fees by state (cross-check)
Similar states
Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.