Before you can start operating, your firm must be incorporated if you want to launch a business in Washington, DC. The procedure of officially establishing a corporate entity and registering it with the state is known as incorporation. This manual will walk you through the process of incorporating in DC step-by-step.
1. Select a kind of business entity The selection of a business entity type is the first step in incorporating in DC. Limited liability companies (LLCs), corporations, partnerships, and sole proprietorships are the most popular business entity kinds. Research is essential before making a selection because each sort of company structure has advantages and cons of its own.
2. Save your business name You must reserve a business name after deciding on the type of business entity. The name you select must be original and not being used by another DC-based company. On the DCRA’s Corporate Name Reservation website, you can determine whether your preferred business name is available.
3. Submit the articles of incorporation You must submit articles of incorporation to the DC Department of Consumer and Regulatory Affairs (DCRA) after reserving your business name. These articles of incorporation will contain details about your company, including its name and address, the names and addresses of its owners, and its purpose.
(4) Obtain an EIN. Employer Identification Numbers, or EINs, are special nine-digit numbers given out by the IRS to identify your company for tax-related purposes. Once your business has been incorporated, you must request an EIN from the IRS. Does Washington, DC, have a Secretary of State with regard to this?
Like other states, Washington, DC does not have a Secretary of State. Instead, control of business registration and incorporation in the District rests with the DC Department of Consumer and Regulatory Affairs (DCRA).
The filing fee for founding an LLC in Maryland is $100. The cost of expedited processing or other services could be extra, though.
Your specific business requirements and objectives will determine whether you should establish an LLC or a sole proprietorship. With limited liability protection provided by an LLC, your personal assets are safeguarded in the event that your company is sued. This protection is not available to sole proprietorships. However, starting and running a sole proprietorship is typically simpler and less expensive. Do I require a DC business license?
Yes, a fundamental business license from the DCRA is necessary for any companies doing business in Washington, DC. Depending on the type of business and the number of employees, the license can cost different amounts.