How to Start an LLC in Washington DC
Washington DC is always ranked as one of the best cities in the United States to start a business. Washington DC is the capital of the United States. As of 2010, the population was 568,292, making it the ninth-largest metropolitan area in the United States. The city makes up impeccable centers for government and business bursting with welcoming people and beautiful landscapes. You shouldn’t have any uncertainties in starting a business in DC.
The fastest and easiest way to start a business in the District of Colombia is by creating a limited liability company (LLC). You can do it even if you are a novice in the business world.
To form an LLC in DC, fathom what kind of an entity you are pursuing. A limited liability company is a distinctive type of legal entity you can use to own and run any business you have in mind. LLCs are inexpensive to establish, easy to run, and flexible with your schedule.
By forming an LLC in the District of Colombia, you legally establish your venture, gain tax liability and limit your personal liability. Significantly, your small or medium-sized business will enjoy personal asset protection, easily access loans and flexible profit distribution. Don’t forget that forming your business as an LLC also brings credibility and opportunities to your business.
You can use all these opportunities to buy assets such as vehicles and real estate and achieve your dreams as an entrepreneur. With this in mind, you should not hesitate to start a business even if you are net to the LLC world. Here is how to go about it:
NAME YOUR LLC
Picking the company name is an imperative step to take and start your limited liability company. The name you choose should comply with Washington DC naming requirements. The name you choose should be memorable for prospective customers.
Search the District of Colombia database and make sure your desired business name is available for use. Search in the DC web domain and check whether the name you prefer is already chosen or available. It should be a unique name that can be easily distinguished from all the existing businesses and registered in the region.
Your name must include the famous phrase “limited liability company,” or you can use its abbreviations that is L.L.C or LLC. Don’t include words that could confuse your LLC with state-owned organizations or agencies. If you desire to use restricted words such as a university, bank, or attorney, you will need additional paperwork.
If you plan to start a business website, it’s wise to register your domain name and create a professional email account. You will have the upper hand and prevent other business-minded people from acquiring the web domain name.
SELECT A REGISTERED AGENT IN WASHINGTON DC
In your pursuit to start an LLC in the District of Columbia, you are required to nominate or list a registered agent. This is an important individual who has the mandate of receiving important legal documents, tax forms, government correspondence, and a notice of lawsuits on your behalf.
A registered agent will be there on your behalf if your business is involved in a lawsuit. Don’t just pick any individual you come across. Ensure your DC registered agent has a physical street address in Washington DC and is a trustworthy individual.
Here are a few options to keep in mind:
You can be your LLC’s registered agent– This is the best practical option you have if you are located in Washington DC and have a valid stress address. You will always be available during business hours. Most importantly, you don’t mind your name and address being on the public records.
A family member or friend- If you don’t have a street address in Washington DC, you can turn to a family member or a friend. The individual you choose should have a street address in DC. This has to be someone who will be available during business hours and doesn’t have an issue with their name and address appearing on the public record.
Seek the services of a registered agent- A registered and reputed agent will keep your name and address off public records. You will enjoy maximum freedom and privacy as you run your limited liability company.
FILE YOUR DC LLC ARTICLES OF ORGANIZATION
You will need to file the Articles of Organization to register your new business. It’s an easy and quick procedure as you can do it online, in person, or by mail.
CREATE YOUR LLC OPERATING AGREEMENT
It’s not a must to have an operating agreement in the District of Colombia, but it’s wise to have one at your disposal. This is a legal article that shows the ownership and operating procedures of an LLC. It helps reduce the risk of unnecessary future conflicts.
OBTAIN A FEDERAL EIN
An Employer Identification Number (EIN) is a nine-digit number you are assigned by the Internal Revenue Service (IRS). It helps identify your business for tax purposes and will also act as a social security number for your LLC.
You will need an EIN to open a business bank account, hire workers, and file or manage state taxes. Even if you are a sole proprietor and already have an EIN, you will require a new one to connect to your new limited liability company.
GET A DC TAX IDENTIFICATION NUMBER
Once your DC LLC has been approved and you have received an EIN, proceed to register your business for DC taxes. You will avoid unnecessary tax issues with the right documents in your hands. Do not skip this step.
When thinking of starting a business, opting for a limited liability company (LLC) is an investment decision you will never regret. It’s a separate business entity you will, without a doubt, fall in love with and comes with many perks. You will run and own your business as well as all its assets.
If you need assistance in starting your LLC please contact us. We are happy to help.
For a comprehensive guide to starting an LLC in Washington DC visit: