Yes, you can absolutely set up a corporation in the District of Columbia. The process is managed by the Department of Licensing and Consumer Protection (DLCP).
While the steps are similar to many states, DC has a few specific requirements—particularly regarding its “Clean Hands” policy and licensing rules.
5 Steps to Incorporate in DC
1. Name Your Corporation
Your name must be distinguishable from any other entity registered in the District. It must also include a corporate designator like:
- Corporation (Corp.)
- Incorporated (Inc.)
- Limited (Ltd.)
- Company (Co.)
2. Appoint a Registered Agent
You must have a registered agent with a physical street address in DC (P.O. boxes are not allowed). They must be available during normal business hours to accept legal documents.
3. File Articles of Incorporation
To officially create the entity, you file Form DBU-1 with the DLCP.
- Cost: Minimum $99.
- Method: You can file online via the CorpOnline portal, in person, or by mail.
- Details needed: Number of authorized shares, name of incorporators, and registered agent information.
4. Register for Taxes (FR-500)
Once incorporated, you must register with the Office of Tax and Revenue (OTR) by filing Form FR-500. This is mandatory even if you don’t expect to owe taxes immediately, as it sets up your accounts for income tax withholding and sales tax.
5. Obtain a Basic Business License (BBL)
Unlike many states where a business license is only for specific trades, almost every business operating in DC is required to have a Basic Business License.
Note: To get this, you must certify that you do not owe more than $100 to the DC government (the “Clean Hands” certification).
Key Maintenance Requirements
- Biennial Reports: DC requires a report every two years to keep your corporation in “Good Standing.” The first report is due on April 1st of the year following your incorporation.
- Corporate Bylaws: While not filed with the government, you are legally required to maintain internal bylaws and record minutes of your initial organizational meeting.
Summary Table
| Requirement | Detail |
|---|---|
| Primary Agency | DLCP (Department of Licensing and Consumer Protection) |
| Formation Filing | Articles of Incorporation (Form DBU-1) |
| Filing Fee | $99+ |
| Tax Registration | Form FR-500 (via MyTax.DC.gov) |
| Ongoing Filing | Biennial Report (Every 2 years) |