LLC TrueCost2026
Verified 2026 Statutory Guide

District of Columbia LLC Cost Calculator & 5-Year Taxes

Initial state filing fee: $220. Ongoing annual report fee: $300 (biennial). Franchise tax: $250/yr minimum.

Direct Answer • 2026 Official Fee Schedule

Starting an LLC in District of Columbia costs $220 for the one-time Articles of Organization filing fee, plus $300/yr in recurring biennial report fees. Over 5 years, maintaining a District of Columbia LLC costs an estimated $2,465, including mandatory annual franchise taxes.

Initial State Filing$220One-time payment
Annual Report$300Due April 1 every 2 years (Form BRA-25)
Franchise Tax$250/yrrevenue_based
Registered Agent$39–$125Annual service
Statutory Department: DC Department of Licensing and Consumer Protection (DLCP)
Verify on State Website (.gov)

District of Columbia LLC 5-Year Cost Model

DC

Adjust parameters below to model state filing fees, recurring franchise taxes, and compliance overhead.

Initial: $220
Approval speed: 10-15 business daysPublic Privacy: Public
If you reside or hire employees in a different state from your LLC, that state requires Foreign Qualification registration.
$150,000
District of Columbia Tax Rule: DC imposes an Unincorporated Business Franchise Tax (UB Tax) minimum $250 if gross receipts exceed $12,000, with 8.25% on net income (subject to trade/business exceptions).
Mandatory by law
Expedited State Processing (+$100)

Accelerates state filing from 10-15 business days to 24-48 hours.

Year 1 Setup Cost
$709

Initial formation fee ($220) + publication + registered agent

Annual Maintenance
$439 /yr avg

Biennial ($300 every 2 yrs) + franchise tax

5-Year True CostAll Hidden Fees Included
$2,465(~$41/mo)

Total 5-year statutory commitment to maintain legal compliance in District of Columbia.

5-Year Cost Trajectory & Fee Composition(Click any year to inspect)

Notice how initial filing fees are often dwarfed by recurring franchise taxes and maintenance.

Inspecting: Year 1 ($709)
$709
Year 1
$289
Year 2
$589
Year 3
$289
Year 4
$589
Year 5
State Formation & Expedited
Franchise & Entity Taxes
Annual / Biennial Reports
Special Mandates (Publication, etc.)
Registered Agent Compliance
Home State Foreign Qualification

Year 1 Itemized Line Items

Total: $709
State Filing$220
Franchise Tax$250
Annual Report$0
Special / Pub$200
Registered Agent$39
Foreign Qual.$0

5-Year Budget Allocation by Cost Category

Total State Filings
$220
9% of 5-yr budget
Total Franchise Taxes
$1,250
51% of 5-yr budget
Annual / Biennial Reports
$600
24% of 5-yr budget
Registered Agent Service
$195
8% of 5-yr budget
Publication / Mandates
$200
8% of 5-yr budget
Founder Cost-Reduction Tip

Save on your District of Columbia filing fees & protect your personal privacy

Pro Tip: Filing directly through the state exposes your personal home address on public government records forever. You can keep your private details off the public registry and save time by using a top-rated Registered Agent service starting at $39 + state fees.

Free Home Address RedactionInstant District of Columbia Compliance AlertsAnnual Report Reminders
Get Started for $39 + State FeesRated 4.8/5 by 10,000+ founders • No hidden renewal spikes
Recommended Business BankingFDIC Insured up to $5M
Open a zero-fee business checking account for your District of Columbia LLC

Separate your business finances immediately to preserve limited liability corporate veil protection.

Explore Mercury ($0 Monthly Fees)

District of Columbia LLC Statutory Framework & Compliance Guide (2026)

Statutory requirements and fee schedules under the DC Department of Licensing and Consumer Protection (DLCP).

Official State Portal (.gov)
Annual Report Due DateApril 1 every 2 years (Form BRA-25)Frequency: BIENNIAL
Normal Turnaround10-15 business daysExpedited: +$100
Public Record PrivacyPublicRegistered agent protects personal address
State Personal Income Tax4% to 10.75%LLC pass-through profits flow to owners
Mandatory Formation Requirement

Basic Business License (BBL)

DC requires almost all businesses operating locally to obtain a Basic Business License (BBL).

Estimated Out-of-Pocket Expense:$200

District of Columbia Franchise Tax & Business Privilege Tax Rules

DC imposes an Unincorporated Business Franchise Tax (UB Tax) minimum $250 if gross receipts exceed $12,000, with 8.25% on net income (subject to trade/business exceptions).

Advantages of a District of Columbia LLC

  • Direct proximity to federal government agencies and contractors

Drawbacks & Hidden Costs

  • Expensive initial fees
  • $300 biennial report
  • Mandatory Basic Business License

Founder Pro-Tip for District of Columbia

Don't forget the DC Basic Business License (BBL) before signing contracts or opening local banking.

Step-by-Step District of Columbia LLC Formation Checklist (2026)

1
Choose an Available Entity Name

Must include "LLC", "L.L.C.", or "Limited Liability Company" and be distinguishable on the DC Department of Licensing and Consumer Protection (DLCP) registry.

2
Appoint a District of Columbia Registered Agent

Must have a physical street address in District of Columbia (no P.O. boxes) to receive official service of process during regular business hours.

3
File Articles of Organization ($220 State Fee)

Submit electronically to the DC Department of Licensing and Consumer Protection (DLCP). Approval is typically granted within 10-15 business days.

4
Execute an Operating Agreement & Obtain Federal EIN

Establish member capital contributions, voting rights, and obtain a free 9-digit EIN from IRS.gov for business checking accounts.

5
Maintain Ongoing Legal Good Standing (April 1 every 2 years (Form BRA-25))

Submit the biennial report with the $300 fee to prevent automatic forfeiture or late fee assessments.

Compare District of Columbia with Rival & Neighboring States

Evaluating formation options? Review fee structures in competing jurisdictions:

Multi-State Comparer