LLC Cost in DC – How Much to Pay for an LLC


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Perhaps you are hoping to form an LLC in DC. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in DC.

DC LLC Cost of Filing

Here are the costs involved in forming an LLC in DC.

Cost of Filing Formation Certificates

The DC Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the DC Secretary of State

DC Domestic LLC

  • Online Filing costs $220.
  • Expedited Filing Fee $320
  • By mail: Fill out the application form, and send it to Department of Consumer and Regulatory Affairs Corporations Division PO Box 92300 Washington, DC 20090. costs $320
  • In-person filing: Fill out the application form, and send it to the Department of Consumer & Regulatory Affairs, 1100 4th St. SW, Washington, DC 20024. costs $320.
  • Biennial Report filing costs $300.00. Late filing of the report bears a penalty of $100.00.

DC Foreign LLC

  • Online Filing Costs $220
  • By mail: Fill out the application form, and send it to the Department of Consumer and Regulatory Affairs Corporations Division PO Box 92300 Washington, DC 20090, costs $220.
  • Biennial Report filing costs $300.00. Late filing of the report bears a penalty of $100.00.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

DC LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in DC, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the DC Department of Revenue for regulatory boards or agencies requiring licensing. 

Business taxes

Apart from the filing of the Annual Report, the DC LLCs are also subject to state tax filing obligations. Though the taxes vary from place to place. There are different types of taxes imposed on entities operating their businesses in DC, such as federal income tax, payroll tax, sales tax, etc.

Income Tax

The income tax in the State varies between 4%-8.95% depending on the amount of income earned. If your business sells products into the State, it shall also attract sales tax at the rate of 6%.

Self-Employment Tax

DC Federal Self-Employment Tax is imposed on the business members who take profits out of the LLC. The current tax rate is 15.3%.

Federal Income Tax

DC Federal Income Tax is paid only on the income that you extract from the profits of your business, reducing the allowances and other deductions. The bracket for this is the same as the State Income Tax.

Withholding Tax

If you employ any person in your business, you must withhold the payroll tax from your employees at the rate of 7.65% of their taxable salary.

Other Mandatory Costs

DC LLC Name: It costs $50 to reserve the name of your LLC for 60 days.

Home Occupation Permit: The application for a Certificate of Occupancy for a DC LLC costs $72.60.

Business License: Obtaining Basic Business License costs around $200 for DC LLCs. Assessment of the licenses is done every two years and the licenses can be renewed at a cost of $70 with $25 for each endorsement. The DCRA Government website provides updated costs information to set up an LLC in DC.

Comparison with the Neighbouring States

 Every state has different costs of filing for an LLC to their respective State Authorities. If you wish to gain a better understanding of the costs of opening an LLC in a different state in comparison to DC, check out the table below:

StatesDCMarylandPennsylvaniaDelawareWest Virginia
Online filing fee$220$100 (Mail)
$150 (online or in-person)
$125$90$100
LLC Annual fee$300 (Biennial)$300$520 times the number of members of the LLC$300$25
Name reservation fee$50$25$70$75$15
Sales Tax6%6%6%No sales tax6%

The Department of Consumer and Regulatory Affairs offers several programs for the District of Columbia to support businesses. Those who want to start an LLC in DC can explore different sectors and trade as per their preferences. The major sectors contributing to the GDP of DC are retail trade, wholesale trade, construction, and utilities.

Other Costs

How Much Does It Cost to Maintain an LLC in District of Columbia

To maintain an LLC in District of Columbia you will need to pay a biennial fee of $300 along with sales tax at 6%, income tax (4-8.95%) and federal taxes.

How much does it cost to maintain an LLC in the District of Columbia? The cost of operating an LLC in the District of Columbia depends on several factors. For example, the name of your business must be unique and should not contain any words like “bank” or “insurance.” To check if the name you’ve chosen is available, you can search the business name database. Additionally, you may need to pay for a business license to do business in the District of Columbia.

To establish an LLC in DC, you must file a biennial report with the Department of Consumer and Regulatory Affairs. These reports cost $300 and are due on April 1 of each year. They include information about the name of the LLC, the jurisdiction it was formed in, the registered agent’s address, and the names of the LLC’s members. The biennial report can be filed online or through the mail.

In addition to paying the fee, you also need to pay unemployment insurance tax. Other taxes may apply to your business, and you must pay them. A professional can help you with this. You can also hire an accounting company to prepare the annual report for you. While this will cost you a bit more, you will avoid any legal entanglements. There are companies that will prepare and file the required documents for you, and they charge a small fee.

While a registered agent is a necessary expense, many LLCs opt to hire a registered agent in the District of Columbia. A registered agent serves as a point of contact for the district and forwards important documents to the LLC. Many formation services include the service, so check the cost before you buy it. Generally, it will cost about $150 per year to hire a registered agent in the District of Columbia. However, this fee will depend on the size of your LLC and your company.

In addition to hiring a registered agent, you also need to register a registered agent in the District of Columbia. This individual or business entity is responsible for accepting legal papers and keeping your business compliant with the District of Columbia business law. The registered agent must have a street address in the District of Columbia. The registered agent must also accept legal mail for the LLC. The registered agent service ensures that any important paperwork is filed on time.

Once you’ve registered your LLC in Washington D.C., you must select a registered agent for the LLC. This person will serve as the main contact between the district and your business. They will also accept service of process if your LLC is sued. To find a registered agent, visit ZenBusiness. This website offers registered agent services for as little as $39, plus state fees. In addition to hiring a registered agent, you should also draft an operating agreement for your LLC in the District of Columbia. This document outlines the ownership and operating procedures of your LLC.

How Much Does It Cost to Maintain an LLC? The cost of forming an LLC varies greatly depending on the state where you choose to form your business. In the District of Columbia, you’ll have to pay between $40 and $500 to form an LLC. In addition, you will have to create a business bank account. Although the cost of forming an LLC in the District of Columbia is lower than most other states, you’ll also need to pay for the services of a registered agent.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of D.C. is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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