Lexipedia - Process for the people

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====== How do I start a business in City of Washington DC? ======

//Generated by [[https://github.com/alibama/lexflow|lexflow]] from the state statutes (open-us-law, government publisher text) and checked by Claude: every quoted phrase was matched word for word against the statute text, and the process passed the BPMN/DMN schemas, bpmnlint and a Petri-net soundness check. Information, not legal advice.//

DC is both the 'state' and the city, so the Department of Licensing and Consumer Protection (DLCP) handles both entity registration and the local license. DLCP lists four steps. (1) If you operate as a corporation, LLC or partnership, register the entity, and any trade name, through BOSS (the old CorpOnline address now redirects there). (2) Get an EIN from the IRS and register it with the DC Office of Tax and Revenue by filing the FR-500 on MyTax.DC.gov. A Clean Hands check runs during the license application; DC will not issue a license if you owe it more than $1,000, unless you are on a payment plan. (3) Get zoning clearance from the Department of Buildings: a Home Occupation Permit if you work from home, or a Certificate of Occupancy for a commercial space. (4) Apply for a Basic Business License online through BOSS (boss.dc.gov). For help, visit the DLCP Business License Center at 1100 4th Street SW, 2nd Floor, where staff will direct you to a kiosk. DC law requires anyone doing business in DC to keep a basic business license, with some exemptions such as activities earning $2,000 a year or less.

//Confidence 1.00: state law 1.00, local 1.00, contact 1.00.// Full state model: [[lexflow:dc:business]]

===== What state law requires =====

  - **Sign and deliver formation filing to Mayor** — Founder (organizer or incorporator) (§ 29-802.01(a))
  - **Pay filing fee in permitted manner** — Founder (organizer or incorporator) (§ 29-102.01%%(c)%%)
  - **Check filing satisfies Title 29** — Mayor (entity filing office) (§ 29-102.06(a))
  - **Record filing as of delivery time** — Mayor (entity filing office) (§ 29-102.06(b))
  - **Return or notify with recorded reason for refusal** — Mayor (entity filing office) · within 15 business days (§ 29-102.06%%(c)%%)
  - **Petition Superior Court to compel filing** — Founder (organizer or incorporator) (§ 29-102.06(d)(1))
  - **Deliver corrected filing without fee** — Founder (organizer or incorporator) · within 60 days (§ 29-102.06%%(c)%%)
  - **Summarily order filing or other action** — Superior Court (§ 29-102.06(d)(2))
  - **Deliver filed copy with acknowledgment** — Mayor (entity filing office) (§ 29-102.06(b))
  - **Admit at least one member** — Founder (organizer or incorporator) (§ 29-802.01(d))
  - **Apply for basic business license per location** — Founder (organizer or incorporator) (§ 47-2851.02(a))
  - **Issue license to complying applicant** — Department (business licensing) (§ 47-2851.02(b))
  - **Register trade name, executed by proprietor or governor** — Founder (organizer or incorporator) (§ 47-2855.02%%(c)%%)
  - **Check trade name is distinguishable** — Department (business licensing) (§ 47-2855.02(d))

===== Which business structure fits, and what must be filed with the state? =====

^ Organized for a nonprofit or charitable purpose ^ Owners render a licensed professional service ^ Number of owners ^ Owners want protection from the business's debts ^ Plans to sell shares to outside investors ^ Some co-owners will be passive investors only ^ → Business structure ^ → Formation document and filing office ^ → State filing fee ^ Source ^
| true | - | - | - | - | - | Nonprofit corporation | Articles of incorporation delivered to the Mayor for filing | See § 29-102.12 | § 29-402.01 |
| false | true | - | true | - | - | Professional corporation or professional limited liability company | Articles of incorporation (meeting Chapter 3, and stating the professional services, the original shareholders' names and addresses, and that each original shareholder and director is licensed) or certificate of organization (professional LLC) delivered to the Mayor for filing | See § 29-102.12 | § 29-506 |
| false | false | - | true | true | - | Stock corporation | Articles of incorporation delivered to the Mayor for filing | See § 29-102.12 | § 29-302.01 |
| false | false | %%>%%= 2 | true | - | true | Limited partnership (general partners stay personally liable unless it is a limited liability limited partnership) | Certificate of limited partnership delivered to the Mayor for filing | See § 29-102.12 | § 29-702.01(a) |
| false | false | - | true | - | - | Limited liability company | Certificate of organization delivered to the Mayor for filing | See § 29-102.12 | § 29-802.01(a) |
| false | - | 1 | false | - | - | Sole proprietorship | No formation filing | None | § 47-2855.02(a)(1) |
| false | - | %%>%%= 2 | false | - | - | General partnership | No formation filing (formed by association); after approval by the vote needed to amend the partnership agreement, a statement of qualification may be delivered to the Mayor to become a limited liability partnership, which changes the liability answer | None | § 29-602.02(a) |

===== What City of Washington DC adds =====

  - **Register the entity and any trade name with the DLCP Corporations Division** — DLCP Corporations Division (BOSS; CorpOnline now redirects to boss.dc.gov). Corporations, LLCs and partnerships register online. If you will use a fictitious or shortened version of the corporate name, register the trade name too. The DLCP page addresses only corporate entities; it does not say what sole proprietors need to do. ([[https://dlcp.dc.gov/node/1618236|source]])
  - **Get an EIN and register for DC taxes (FR-500)** — IRS; DC Office of Tax and Revenue (OTR). Get an EIN from the IRS. Then file the FR-500 New Business Registration on MyTax.DC.gov or at the OTR Customer Service Center, 1101 4th Street SW, Suite W270. ([[https://otr.cfo.dc.gov/page/new-business-registration|source]])
  - **Clean Hands check** — DLCP / OTR. The check runs during the online BBL application. Under D.C. Code § 47-2862, DC will not issue a license to anyone who owes it more than $1,000 in past-due taxes, fines or certain other debts. Exceptions apply for debts under a pending appeal and for applicants keeping to an agreed payment schedule. ([[https://dlcp.dc.gov/node/1618236|source]])
  - **Home-based business: get a Home Occupation Permit (HOP) before the license** — DC Department of Buildings (DOB). Apply online and upload the supporting documents. Most home-office uses get an automatically issued HOP; uses such as childcare and lodging need staff review. ([[https://dob.dc.gov/node/1616176|source]])
  - **Commercial location: get a Certificate of Occupancy (C of O)** — DC Department of Buildings. Apply through Certifi (certifi.dob.dc.gov). Approval typically takes about seven business days. The application is invoiced after approval, and the C of O is issued once payment is received. DOB is at 1100 4th Street SW, (202) 671-3500. ([[https://dob.dc.gov/service/get-certificate-occupancy|source]])
  - **Apply for the Basic Business License (BBL)** — DLCP Business Licensing Division. Submit the application, supporting documents and payment through BOSS (boss.dc.gov). The license category depends on your business activities. ([[https://dlcp.dc.gov/node/1618236|source]])
  - **Use the in-person Business License Center if needed** — DLCP Business License Center. Visit the center and staff will direct you to a kiosk to apply through BOSS. All applications must still be submitted online. For questions about license requirements or categories, call (202) 671-4500. ([[https://dlcp.dc.gov/service/business-licensing-division|source]])

===== Who to contact =====

  * DLCP online business licensing and corporate registration (CorpOnline redirects here): BOSS (boss.dc.gov)
  * OTR FR-500 new business tax registration: MyTax.DC.gov
  * Certificate of Occupancy applications: Certifi (DOB)
  * In-person business licensing help (kiosk): DLCP Business License Center, 1100 4th Street SW, 2nd Floor, Washington, DC 20024
  * DLCP Business Licensing Division: (202) 671-4500
  * Tax registration help: OTR Customer Service Center, 1101 4th Street SW, Suite W270, Washington, DC 20024
  * OTR (727-4TAX): (202) 727-4829
  * DC Department of Buildings: (202) 671-3500

===== Local law =====

  * [[https://code.dccouncil.gov/us/dc/council/code/sections/47-2851.02|D.C. Code § 47-2851.02 (basic business license required)]]: Anyone doing business in DC must maintain a basic business license, with a separate license for each location. Some activities are exempt, including those with gross annual revenue of $2,000 or less.
  * [[https://code.dccouncil.gov/us/dc/council/code/sections/47-2862|D.C. Code § 47-2862 (Clean Hands: prohibition against issuing a license or permit)]]: The District may not issue or reissue a license or permit to an applicant who owes it more than $1,000 in past-due taxes, fines, penalties or interest, or in certain other debts. Exceptions apply for debts under a pending appeal and for applicants complying with a payment schedule.

**Fees.** From DLCP's License & Corporate Filing Fees page: General Business license $49 for 6 months, $99 for 2 years, $198 for 4 years. Corporate initial registration: domestic for-profit $99, domestic non-profit $80, foreign for-profit $220, foreign non-profit $80. Biennial reports: $300 for-profit and $80 non-profit, with a late fee after April 1 of the year due of $100 for-profit or $50 non-profit. Fees for other license categories and endorsements vary by business activity. The DOB pages do not state HOP or C of O fees; the C of O is invoiced after approval. I found no FR-500 registration fee stated.

===== Caveats =====

  * The fee page lists only general business and corporate registration figures. Other BBL categories (for example food, home improvement or professional services) have different fees and may need endorsements, and I did not verify those. The full corporate fee schedule is at dlcp.dc.gov/node/1621901, which I did not fetch.
  * Trade name fees are not listed on the DLCP fee page I checked.
  * Third-party sources mention a 10% technology fee and $25-per-endorsement amounts under older law. D.C. Code § 47-2851.08 is now marked repealed, so I did not include those amounts.
  * corponline.dlcp.dc.gov now redirects to boss.dc.gov, which suggests corporate registration has moved to BOSS. The BOSS, MyTax.DC.gov and Certifi pages did not render any content when fetched, so I confirmed them only through the agency pages that link to them.
  * The DLCP steps page does not mention sole proprietors. Sole proprietors using their own legal name generally do not need corporate registration but still need tax registration, zoning clearance and a BBL; I did not verify this on an official page. Trade name registration applies if they use a different name.
  * Some older DLCP pages reportedly cite a $100 Clean Hands threshold. The current D.C. Code § 47-2862 uses $1,000, apart from Department of Motor Vehicles licenses and permits.
  * Certain uses (child development homes, regulated professions, alcohol, rental housing) have extra requirements that I did not research.
  * According to the OTR page, businesses with a withholding account should also contact the Department of Employment Services (DOES) to register for unemployment insurance.

===== Sources =====

  * [[https://dc.gov/foia|Freedom of Information Act (FOIA) | DC]]
  * [[https://myfoia.dc.gov|DC Government Public FOIA Portal (redirects to myfoiadc.govqa.us)]]
  * [[https://code.dccouncil.gov/us/dc/council/code/sections/2-532|D.C. Code § 2-532]]
  * [[https://opc-dc.gov/wp-content/uploads/2024/10/DCMR1408_0.pdf|1 DCMR 408 (2013 copy hosted by Office of the People's Counsel)]]
  * [[https://dlcp.dc.gov/node/1618236|DLCP - Steps to Obtaining a Basic Business License]]
  * [[https://dlcp.dc.gov/service/business-licensing-division|DLCP Business Licensing Division]]
  * [[https://dlcp.dc.gov/page/dlcp-license-corporate-filing-fees|DLCP License & Corporate Filing Fees]]
  * [[https://otr.cfo.dc.gov/page/new-business-registration|OTR New Business Registration]]
  * [[https://dob.dc.gov/node/1616176|DOB Home Occupation Permit]]
  * [[https://dob.dc.gov/service/get-certificate-occupancy|DOB Get a Certificate of Occupancy]]
  * [[https://code.dccouncil.gov/us/dc/council/code/sections/47-2851.02|D.C. Code § 47-2851.02]]
  * [[https://code.dccouncil.gov/us/dc/council/code/sections/47-2862|D.C. Code § 47-2862]]

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