Finding out what kind of business license your company needs is the first step. Three different business licenses are available in the District of Columbia: the Basic Business License (BBL), the Home Occupation Permit (HOP), and the Inclusionary Zoning Lottery.
All firms operating in the District must have a Basic Business License. Businesses that operate out of homes must get a Home Occupation Permit. Businesses who wish to take part in the Inclusionary Zoning program must enter the lottery.
Before requesting a business license, proprietors must register their company with the District of Columbia Department of Consumer and Regulatory Affairs (DCRA). Owners of businesses can register at the DCRA either in person or online.
Step 3: Complete the application for a business license The application for a business license must be finished after the business has been registered. The DCRA accepts applications both online and in person. The application asks for details including the company’s name, address, and industry.
Pay the business license fee in step four. The business licensing fee must be paid as the last step. Depending on the kind of business and the number of employees, a different cost applies. Owners of businesses can pay the charge at the DCRA in person or online.
Yes, a business license is required in the District of Columbia for LLCs. An LLC needs its own business license because it is a distinct legal entity from its owners.
An LLC’s principal drawback is that it might be more expensive to establish and run than a sole proprietorship or partnership. Additionally, self-employment taxes are payable by LLC owners.
An LLC’s main benefits are that it offers its owners limited liability protection and various taxation alternatives. In comparison to other company formations, LLCs are also extremely simple to establish and administer.