The Complete Guide to Washington, DC Business Licenses
Washington, DC requires most businesses to hold a Basic Business License (BBL) from the Department of Licensing and Consumer Protection (DLCP). The order matters: register the business, register for taxes, get your occupancy approval, then apply for the BBL. This guide explains each step for a new Washington, DC business.
Step 1: Form the LLC
Register a domestic LLC with the DLCP Corporations Division through BOSS (boss.dc.gov). The Articles of Organization cost $99. DC LLCs file a $300 biennial report, first due April 1 of the year after registration and then every two years; late filing adds $100. LLCs must keep a registered agent in DC.
Step 2: Register for taxes with OTR
File the FR-500 new business registration with the Office of Tax and Revenue on MyTax.DC.gov, attaching your Articles of Organization. The general sales tax rate is 6% (OTR has postponed the planned increase to 7% until after September 30, 2027). Restaurant meals and on-premises alcohol are taxed at 10%, and hotel stays at 15.95%. The same registration sets up employer withholding.
Step 3: Certificate of Occupancy or Home Occupation Permit
Every business location needs a Certificate of Occupancy from the Department of Buildings (DOB), applied for through its Certifi portal. If you work from home, you apply for a Home Occupation Permit through the same process. Check zoning before you sign a lease.
Step 4: Basic Business License
Apply to DLCP for a Basic Business License for each location and licensed activity — consultants, for example, need a General Business license. Since the BEST Act, BBL fees are flat: $99 for two years or $198 for four years ($49 for six months for some activities), and renewals cost the same. You need a FEIN or SSN, your OTR registration, your occupancy approval, a registered agent and Clean Hands status (no more than $1,000 owed to the District). Licenses run to the last day of the expiry month, and late renewals carry penalties starting at $75.
Step 5: Contractors and regulated trades
General contractors and construction managers hold a BBL ($99 for two years) and must show liability insurance. Home improvement contractors also need a $25,000 surety bond, liability insurance, a police criminal history report and at least one licensed home improvement salesperson.
Hiring staff and trade names
Employers register for withholding with OTR and for unemployment insurance with the Department of Employment Services (DOES). DC employers also pay the Paid Family Leave contribution of 0.75% of covered wages. A trade name is registered with the DLCP Corporations Division for $55.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Articles of Organization | DLCP Corporations Division (BOSS) | $99; $300 biennial report |
| Tax registration (FR-500) | Office of Tax and Revenue | MyTax.DC.gov |
| Certificate of Occupancy | Department of Buildings | Per location |
| Basic Business License | DLCP | $99 for 2 years |
| Trade name | DLCP Corporations Division | $55 |
Frequently Asked Questions
Do I need a business license in Washington, DC?
Yes. Most businesses need a Basic Business License (BBL) from DLCP for each location and licensed activity.
How much is a Basic Business License in DC?
BBL fees are flat: $99 for two years or $198 for four years, with a $49 six-month term for some activities. Renewals cost the same.
What do I need before applying for a DC business license?
A FEIN or SSN, tax registration with OTR (form FR-500), a Certificate of Occupancy or Home Occupation Permit, a registered agent and Clean Hands status.
How much does it cost to form an LLC in Washington, DC?
The Articles of Organization cost $99, and the biennial report is $300, due April 1 every two years.
What is the sales tax rate in Washington, DC?
6% general, with OTR postponing the increase to 7% until after September 30, 2027. Restaurant meals are taxed at 10%.