LLC Formation Cost Calculator
District of Columbia LLC 2026

$399 to form your District of Columbia LLC

$99 state filing fee · $300biennial report. 5-year cost of ownership: $999.

By Aissam Baidi · Reviewed against dlcp.dc.gov · Verified 2026-04-28

How much does a District of Columbia LLC cost in 2026? A District of Columbia LLC costs $399 in year one ($99 filing fee for the Articles of Organization (Form DLC-1)). Ongoing cost is $150/year ($300 biennial report). Five-year total: $999. Standard processing takes about 5 business days; expedite for $100 extra. At $399, District of Columbia runs $244 above the US median of $155 for year-one LLC costs, mostly driven by higher state filing fees. District of Columbia sits in the mid-range for LLC formation costs, competitive enough for in-state operators with no major surprise fees beyond what's listed here. Sourced from dlcp.dc.gov, verified 2026-04-28.

Filing fee $99 Articles of Organization (Form DLC-1)
Annual / recurring $300 biennial report
Processing 5 days expedite +$100
5-year total $999

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LLC Cost Calculator

Pick your state, choose any add-ons, and see the year-one + 5-year math. Every figure cites the state's Secretary of State or the IRS.

The U.S. state where you'll file LLC paperwork. Foreign qualification fees apply if you operate elsewhere.

State filing fee is the same for any member count; member count drives IRS tax classification (single-member = disregarded; multi-member = partnership).

Operating agreement

Not legal advice. Estimates based on publicly available data from each state's Secretary of State office. Consult a licensed attorney in your jurisdiction.

District of Columbia vs the rest of the US

Year-1 LLC cost in District of Columbia is $399. That's $364 more than the cheapest state (Montana). Form there if you can register your business out-of-state.

District of Columbia You are here Your state
$399
Delaware Peer state
$390
Wyoming Peer state
$160
New Mexico Peer state
$50
Florida Peer state
$263.75
Montana Cheapest in US
$35
Massachusetts Most expensive
$1,000

All figures are year-1 LLC formation cost (state filing fee + first-year report fee + first-year franchise tax). Sourced quarterly from each state's Secretary of State office.

5-year cumulative cost projection

How District of Columbia's LLC cost compares against the popular "shop another state" alternatives over 5 years of ownership. Steeper line = higher recurring cost.

$0 $500 $1,000 $1,500 $2,000 Year 1Year 2Year 3Year 4Year 5 District of Columbia Delaware Wyoming New Mexico
After 5 years of ownership, District of Columbia totals $999. Delaware: $1,590 (+$591). Wyoming: $400 (save $599). New Mexico: $50 (save $949).

All 50 states + DC, by 5-year LLC cost

Heat-map of 5-year ownership cost across the US. Click any state to see its full breakdown. Cheapest in green, most expensive in dark red.

  • Cheapest 20%
  • Below average
  • Average
  • Above average
  • Most expensive 20%
Alaska: $450 over 5 years Alabama: $700 over 5 years Arkansas: $1,245 over 5 years Arizona: $50 over 5 years California: $4,130 over 5 years Colorado: $175 over 5 years Connecticut: $1,770 over 5 years District of Columbia: $999 over 5 years Delaware: $1,590 over 5 years Florida: $818.75 over 5 years Georgia: $350 over 5 years Hawaii: $118.5 over 5 years Iowa: $110 over 5 years Idaho: $100 over 5 years Illinois: $525 over 5 years Indiana: $159 over 5 years Kansas: $185 over 5 years Kentucky: $990 over 5 years Louisiana: $250 over 5 years Massachusetts: $3,000 over 5 years Maryland: $1,600 over 5 years Maine: $515 over 5 years Michigan: $150 over 5 years Minnesota: $155 over 5 years Missouri: $50 over 5 years Mississippi: $50 over 5 years Montana: $35 over 5 years North Carolina: $1,135 over 5 years North Dakota: $385 over 5 years Nebraska: $156 over 5 years New Hampshire: $510 over 5 years New Jersey: $1,250 over 5 years New Mexico: $50 over 5 years Nevada: $1,825 over 5 years New York: $218 over 5 years Ohio: $99 over 5 years Oklahoma: $229 over 5 years Oregon: $600 over 5 years Pennsylvania: $153 over 5 years Rhode Island: $2,406 over 5 years South Carolina: $110 over 5 years South Dakota: $425 over 5 years Tennessee: $2,300 over 5 years Texas: $300 over 5 years Utah: $149 over 5 years Virginia: $350 over 5 years Vermont: $1,630 over 5 years Washington: $480 over 5 years Wisconsin: $255 over 5 years West Virginia: $200 over 5 years Wyoming: $400 over 5 years

5-year cost = year-1 (state filing + first-year report + first-year franchise tax) + 4 years of ongoing (annual/biennial report + franchise tax). Sourced quarterly from each Secretary of State.

Where would you save the most?

Filing in Montana instead of District of Columbia could save you about $964 over 5 years (96% lower total).

Cross-state filing requires foreign qualification in the state you actually operate from, which adds $50-$300/year in fees plus a registered agent in each jurisdiction. Run the math before deciding.

Cheapest 5-year LLC states

  1. #1 Montana $35
  2. #2 Arizona $50
  3. #3 Mississippi $50

Most expensive 5-year LLC states

  1. #1 California $4,130
  2. #2 Massachusetts $3,000
  3. #3 Rhode Island $2,406
AI Insights

District of Columbia LLC formation, decoded

6,000 LLCs formed in District of Columbia in 2025 • Top industries: professional, scientific, and technical services, accommodation and food services, health care and social assistance

Business climate

The District of Columbia boasts a dynamic business climate driven by its federal government presence, a highly educated workforce, and thriving sectors in professional services, technology, and tourism, though it faces a high cost of living.

Regional context

Situated in the Mid-Atlantic region, the District of Columbia is an urban hub bordered by Maryland and Virginia, making these neighboring states relevant for LLC shoppers considering regional operations.

What's unusual about District of Columbia

Unlike many states, the District of Columbia imposes an entity-level Unincorporated Business Franchise Tax (UBF) on LLCs, which is a tax on net income rather than a pass-through to owners, and notably, a recent legislative change eliminated a historical 'liquidation exemption' for this tax.

Founder tip

Founders forming an LLC in DC should thoroughly understand the Unincorporated Business Franchise Tax (UBF) and its implications, especially concerning asset sales or business termination, as it can significantly impact tax liability.

Cost dynamics

District of Columbia bills the annual report every 2 years (biennial), not annually. That cuts ongoing administrative friction roughly in half compared to annual-cadence states.

Insights compiled from primary government sources (Secretary of State, IRS, Census BFS) and verified by Gemini 2.5 with Google Search grounding. Last refreshed 2026-06-01.
Full District of Columbia LLC cost guide

DC LLC Cost: $99 Filing + $300 Biennial Report (2026)

Forming an LLC in the District of Columbia costs $99 to file Articles of Organization (Form DLC-1) with the Department of Licensing and Consumer Protection (DLCP), then $300 every two years for the biennial report. On top of that, DC imposes a franchise tax with a $250 minimum on LLCs with gross receipts of $12,000 or more (rising to $1,000 minimum at $1M+ in receipts), payable annually to the Office of Tax and Revenue. Year-one cost: $99 (the biennial report and the first franchise tax fall in year two). Five-year cost of ownership: $1,849 ($99 + $300 × 2 biennial reports + $250 × 5 franchise tax). DC is the only US jurisdiction that treats LLCs as taxable entities at the entity level even when federally classified as pass-throughs, a structural quirk that distinguishes the District from every state.

Reviewed by LLC Formation Cost Editorial Team, fact-checked against primary government sources • Last updated 2026-05-14 • 5 primary government sources cited

TL;DR

DC LLCs file Articles of Organization (Form DLC-1) with the DC Department of Licensing and Consumer Protection for $99. The biennial report is $300, due by April 1 of the year after formation and every two years thereafter. The DC franchise tax (officially the Unincorporated Business Franchise Tax for pass-through LLCs, codified at D.C. Code § 47-1808.01) applies a $250 minimum to LLCs with gross receipts over $12,000, and a $1,000 minimum at $1M+ in gross receipts. DC is the only US jurisdiction that taxes pass-through LLCs at the entity level rather than just at the member level, the federal IRS classification (partnership, disregarded entity, S-corp) doesn’t matter for DC purposes. Online filings via CorpOnline are processed in 5 business days standard, 1 day with $100 expedite.

DC LLC cost breakdown (2026)

Line itemCostSource
Articles of Organization (Form DLC-1)$99dlcp.dc.gov
Biennial Report$300 every 2 yrsdlcp.dc.gov
Expedite (24-hour)+$100dlcp.dc.gov
DC Franchise Tax (gross receipts $12K-$1M)$250/yr minotr.cfo.dc.gov
DC Franchise Tax (gross receipts $1M+)$1,000/yr minotr.cfo.dc.gov
Clean Hands Certificate (required for license)$0dlcp.dc.gov
Basic Business License (most activities)$99-$324/2 yrsdlcp.dc.gov
Registered Agent service (DC-resident required)$50-$200/yrn/a
Year 1 total (DIY, no add-ons)$99
Year 2 (biennial report + franchise tax)$550
Year 3 (franchise tax only)$250
5-year total (DIY, $12K-$1M gross receipts)$1,849($99 + $300×2 + $250×5)

All figures verified 2026-05-14 from primary DC government sources.

Why DC is structurally different from every state

The District of Columbia is technically a federal district, not a state, and its tax structure reflects that. Two things make DC stand apart:

  • Entity-level franchise tax on pass-through LLCs. D.C. Code § 47-1808.01 imposes the Unincorporated Business Franchise Tax on LLCs with DC-source gross receipts, regardless of federal pass-through classification. In every state in the US, a single-member or partnership-taxed LLC owes $0 entity-level income tax (the income flows to the members). In DC, that LLC owes 8.25% of DC-source net income with a $250 floor at $12,000+ gross receipts and $1,000 floor at $1M+ gross receipts.
  • Biennial report cadence at $300. DC’s $300 biennial works out to $150/yr effective, but the biennial cadence catches founders who budget for annual reports and forget to plan for the off-year zero followed by the on-year $300.

The legal basis for the LLC formation is D.C. Code Title 29, Chapter 8 (Uniform Limited Liability Company Act of 2010). The franchise tax basis is D.C. Code Title 47, Chapter 18.

Filing steps (DIY, no service)

  1. Pick a name and check availability, search at CorpOnline. Names must include “Limited Liability Company,” “LLC,” or “L.L.C.” and cannot imply federal or DC government authority.
  2. Designate a registered agent, must have a DC street address. P.O. boxes don’t qualify. You can act as your own agent if you live in DC.
  3. File Articles of Organization (Form DLC-1), $99 via CorpOnline or by mail to DLCP Corporations Division, 1100 4th Street SW, 2nd Floor, Washington, DC 20024.
  4. Get a federal EIN, free at irs.gov.
  5. Register with the DC Office of Tax and Revenue (OTR), online via MyTax.DC.gov for franchise tax, sales and use tax (6%), withholding tax if hiring.
  6. Obtain a Clean Hands Certificate, required before applying for a Basic Business License. Free via MyTax.DC.gov.
  7. Apply for a Basic Business License (BBL), $99-$324 for two years depending on activity category. Required for nearly all commercial activity in DC. Via dlcp.dc.gov.
  8. Draft an operating agreement, D.C. Code § 29-801.07 recognizes operating agreements but does not require them. Standard practice for any LLC.
  9. File the FinCEN BOI report, required under the Corporate Transparency Act within 30 days of formation. Free to self-file at fincen.gov/boi.
  10. Calendar the biennial report and franchise tax, biennial report due April 1 of the year after formation (then every two years), $300. DC franchise tax return Form D-30 due April 15 each year.

Online filings via CorpOnline are processed in 5 business days standard; 1-day expedite is $100 (in-person Tier 1 expedite at the DLCP office is $50 same-day for documents under five pages).

Page-unique facts

  • DC is the only US jurisdiction that taxes pass-through LLCs at the entity level. Federal partnership classification doesn’t help in DC. The Unincorporated Business Franchise Tax (D.C. Code § 47-1808.01) is unique.
  • The franchise tax exemption applies only to entities where 80%+ of gross income is from “personal services” performed by individuals. Single-member LLCs of consultants, freelance designers, and similar service businesses can qualify and avoid the franchise tax. Pure investment LLCs and rental real estate LLCs typically do not qualify.
  • Biennial report is $300, payable every two years on April 1. First biennial is due April 1 of the year following formation.
  • DC requires a Basic Business License for most activities. Separate from the Articles of Organization, separate from the franchise tax. Many founders miss this.
  • Clean Hands Certificate is required before getting the BBL. This verifies the entity has no unpaid DC taxes, fines, or fees. Federal employees and others with unresolved DC tax matters can be surprised here.

FAQ

Why does DC tax my pass-through LLC?

Because of the Unincorporated Business Franchise Tax under D.C. Code § 47-1808.01, which is unique among US jurisdictions. DC taxes the LLC at the entity level on DC-source net income at 8.25%, with a $250 minimum if gross receipts exceed $12,000 and a $1,000 minimum if gross receipts exceed $1 million. The federal IRS classification of the LLC (partnership, disregarded entity) does not matter for DC purposes. There is a personal-services exemption: if 80%+ of gross income comes from personal services performed by individuals (think consulting, design, legal services), the LLC may be exempt. Source: DC Office of Tax and Revenue Unincorporated Business Franchise Tax, verified 2026-05-14.

When is the DC biennial report due?

April 1 of the year following formation, then every two years on April 1. For an LLC formed October 2026, the first biennial report is due April 1, 2027 ($300). The next is due April 1, 2029. Late filings trigger a $100 penalty plus a fee for reinstatement if the LLC falls into “revoked” status. Source: DC DLCP Corporations Division, verified 2026-05-14.

Can I skip the DC franchise tax if my LLC is just a holding entity?

Possibly, but check the personal-services rule. A pure holding LLC with no DC-source gross receipts may owe $0 in DC franchise tax. Add DC-source rental income or DC-source service revenue and the $250 minimum kicks in. The personal-services exemption requires 80%+ of gross income to come from individual labor, which is hard for asset-holding entities to meet. Source: DC OTR Form D-30 instructions, verified 2026-05-14.

How long does DC LLC formation take?

CorpOnline standard processing: 5 business days. Expedite (24-hour): $100. Tier 1 in-person expedite (3-hour, for filings under five pages, at the DLCP service center): $50. Mail filings: 4 weeks. Source: DC DLCP.

Do I need a Basic Business License for my DC LLC?

Usually yes. Most commercial activity in DC requires a BBL ($99-$324 for two years depending on the activity category) separate from the Articles of Organization. The Clean Hands Certificate from MyTax.DC.gov is a prerequisite. Holding-only LLCs that conduct no operational business in DC may not need a BBL, but the rule is fact-dependent. Source: DC DLCP Business Licensing.

Is DC a good state for a non-resident formation?

Only if you have DC operations. The combination of $99 filing + $300 biennial + $250/yr franchise tax + DC RA service ($120/yr) + Basic Business License ($99-$324/2 yrs) makes DC one of the most expensive jurisdictions to maintain. A non-resident with no DC nexus would be better served by Wyoming ($340 over 5 years) or New Mexico ($50). DC LLCs make sense for entities operating in the District. Source: DC DLCP.

State quirk: the Unincorporated Business Franchise Tax

DC is the only US jurisdiction that treats pass-through LLCs as taxable entities for income tax purposes. The Unincorporated Business Franchise Tax (UBFT), codified at D.C. Code § 47-1808.01, was created in the 1940s and has survived every wave of federal pass-through reform that wiped out similar taxes at the state level. The rate is 8.25% of DC-source net income, with the floor of $250 for entities with gross receipts of $12,000 to $1 million, and $1,000 for entities with gross receipts above $1 million. The narrow escape valve is the “personal services” exemption: if 80% or more of an LLC’s gross income comes from personal services rendered by individual owners, the LLC is exempt and the income flows through to the members’ DC personal returns instead. The exemption works well for solo consultants, single-member design firms, and other “I am the business” structures. It fails for holding LLCs, rental real estate, and investment vehicles. DC’s status as a federal district (not a state) is what kept the UBFT in place: when most states moved to true pass-through treatment in the 1980s and 1990s to align with the federal Check-the-Box rules, DC was politically insulated from the tax-harmonization pressure and never followed.

Common mistake in DC

The most common DC LLC mistake is forming a single-member LLC, assuming federal pass-through classification means no DC income tax, and then receiving a Form D-30 franchise tax notice the following spring with a $250 bill. The personal-services exemption is narrow and requires actual analysis of where the LLC’s gross income comes from; founders who do “business” beyond their own labor (selling products, holding rental real estate, investing) almost always owe the UBFT. The second most common mistake is forgetting the Basic Business License, which is separate from the formation filing and required for almost all commercial activity.

Sources

  1. DC Department of Licensing and Consumer Protection Corporations Division, last verified 2026-05-14
  2. DC Office of Tax and Revenue Unincorporated Business Franchise Tax (Form D-30), last verified 2026-05-14
  3. DC CorpOnline Business Filings Portal, last verified 2026-05-14
  4. MyTax.DC.gov, last verified 2026-05-14
  5. D.C. Code Title 29 Chapter 8 (Uniform LLC Act of 2010), last verified 2026-05-14
  6. IRS Publication 3402, Taxation of Limited Liability Companies, last verified 2026-05-14

About the author

Aissam Baidi is the founder and researcher behind llcformationcost.com. He verifies DC LLC fees directly from dlcp.dc.gov and otr.cfo.dc.gov on a quarterly cycle. Connect on LinkedIn.

Not legal advice. Estimates based on publicly available data from each state’s Secretary of State office. Consult a licensed attorney in your jurisdiction.

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AI Q&A

Ask anything about District of Columbia LLCs

Pre-answered for the questions founders ask first. Tap one to read the full answer, or write your own.

What's the actual filing fee in District of Columbia?

District of Columbia charges $99 to file the Articles of Organization (Form DLC-1) with dlcp.dc.gov. Expedited service is available for an additional $100, reducing turnaround to about 1 business days vs. the standard ~5.

Does District of Columbia have a franchise tax?

No. District of Columbia does not impose a flat franchise tax on LLCs. Some pass-through entity income may still be taxed at the member level under state income tax rules.

What's the annual report situation in District of Columbia?

District of Columbia requires a biennial report at $300. That cadence is every two years, so the amortized cost is roughly $150/year.

Do I need a registered agent in District of Columbia?

Yes. Every District of Columbia LLC must designate a registered agent with a physical District of Columbia street address (no P.O. boxes), available during business hours to accept legal mail. You can serve as your own agent for free if you live in District of Columbia, but most founders use a commercial service ($100-150/year) to keep their home address off the public record.

What's unusual about forming an LLC in District of Columbia?

Unlike many states, the District of Columbia imposes an entity-level Unincorporated Business Franchise Tax (UBF) on LLCs, which is a tax on net income rather than a pass-through to owners, and notably, a recent legislative change eliminated a historical 'liquidation exemption' for this tax.

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District of Columbia-specific Operating Agreement preview

Five substantive sections with District of Columbia-specific clauses (filing form, franchise tax, publication requirements, governing law). Use as a starting point with your attorney, or upgrade for the full 12-section document.

OPERATING AGREEMENT OF [COMPANY NAME], LLC

A District of Columbia Limited Liability Company
Generated 2026-06-01 • State-specific template

Article I. Formation

This Operating Agreement is entered into as of [date], by and among the undersigned members of [Company Name], a Limited Liability Company organized under the District of Columbia Limited Liability Company Act. The Company was formed by filing the Articles of Organization (Form DLC-1) with the District of Columbia Secretary of State on [filing date]. The Company's principal office is located at [address], District of Columbia.

Article II. Members & Membership Interests

The members of the Company are listed on Exhibit A. Each member's capital contribution and percentage interest are set forth therein. Members may be admitted only by [unanimous / majority] consent of existing members. District of Columbia law does not mandate a written operating agreement, but the parties agree that this writing governs.

Article III. Management

The Company shall be [member-managed / manager-managed]. District of Columbia default rules apply to any matter not addressed here. The Company shall timely file the biennial report ($300) with the District of Columbia Secretary of State to maintain good standing.

Article IV. Distributions & Allocations

Profits, losses, and distributions shall be allocated among members in proportion to their percentage interests, except as otherwise agreed in writing. Distributions shall be made [quarterly / annually / at the discretion of the [members / managers]]. The Company shall maintain capital accounts in accordance with Treas. Reg. § 1.704-1(b).

Article V. Dissolution & District of Columbia-Specific Provisions

The Company shall dissolve upon [vote of majority members / occurrence of specific events]. Upon dissolution, the Company shall wind up its affairs and distribute remaining assets in accordance with District of Columbia law. This agreement is governed by District of Columbia law and any disputes shall be resolved in [forum].

7 more sections in the full document

Tax matters, indemnification, transfer restrictions, dissolution mechanics, signature pages, exhibits A & B (member roster + capital contributions), and amendment procedures. Plus state-specific signature-line text per $District of Columbia convention.

Get the open dataset (free, CC BY 4.0)

Not legal advice. This template is a starting point for discussion with a licensed District of Columbia attorney. Operating Agreements should be reviewed by counsel for your specific situation.

District of Columbia LLC cost vs popular alternatives

A common decision is whether to form in your home state or an out-of-state filing state (Delaware, Wyoming, New Mexico). Out-of-state formation usually requires foreign-LLC registration in your home state too, adding both filing costs.

State First-year cost Annual renewal Franchise tax Processing days Publication required
District of Columbia $399 $150 - 5 days -
Delaware $390 $300 - 14 days -
Wyoming $160 $60 - 14 days -
New Mexico $50 $0 - 14 days -
Florida $263.75 $138.75 - 5 days -

Fees verified 2026-04-28 from each state's Secretary of State.

Frequently asked questions about District of Columbia LLCs

How much does it cost to form an LLC in District of Columbia in 2026?

District of Columbia charges $99 to file the Articles of Organization (Form DLC-1). An ongoing biennial report fee of $300 keeps the LLC in good standing. Verified 2026-05-14 from dlcp.dc.gov.

Does District of Columbia require an annual report?

Yes. District of Columbia requires a biennial report at $300.

What is the processing time in District of Columbia?

Standard processing in District of Columbia takes about 5 business days. Expedited processing is available for an additional $100, reducing turnaround to about 1 business days.

Does District of Columbia have a publication requirement?

No. District of Columbia does not require LLC formation to be published in newspapers.

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Not legal advice. Estimates based on publicly available data from each state's Secretary of State office. Consult a licensed attorney in your jurisdiction.