District of Columbia Corporation

You can get an EIN directly from the IRS. The application is free, and most businesses can apply online. However, if you don’t have a social security number, you’ll need to submit a paper application form. Can’t bear to fill out yet another application? Hire Northwest to get your EIN for you. Just add on EIN service during checkout when you sign up for our incorporation service.

Corporate bylaws cover basic policies and procedures for issues such as company finances and management. Bylaws should cover a range of topics, answering key questions like those below:

• Meetings: When and where will meetings for shareholders and directors be held? How many attendees are required to transact business? What are the procedures for voting or proxy voting? How do you call a special meeting? What actions can be taken without a meeting?

• Stock: How are stock certificates issued and transferred? How is voting affected by issues such as corporate stock owners or fractional shares?

• Directors and officers: How many directors must there be? Which officer positions are required? What powers do they have? How do you fill a vacancy or remove a director or officer?

• Finances: What are the procedures for retaining profits, issuing dividends, and paying bills? Who can withdraw money from the corporate bank account or sign checks?

• Records: Where is the corporate book to be kept? What information will be maintained? How are requests for review or access honored? Can records or copies be kept or distributed digitally?

• Amendments and emergencies: Who can amend bylaws and how? Can emergency bylaws be adopted in the case of disaster?

Washington DC corporate bylaws can also make other provisions, assuming additions are in accordance with district law. Bylaws can also be changed over time. According to DC Code § 29–308.20, shareholders have the power to amend bylaws. In most situations (unless stated otherwise by shareholders or in the Articles of Incorporation), the board of directors may amend the bylaws as well.

Creating bylaws can be overwhelming—where do you start? Northwest can help. We give you free corporate bylaws when you hire us to form your Washington DC corporation. We know what kinds of topics and questions corporations need to address, and we’ve spent years refining and improving our forms. We offer many other free corporate forms as well, including templates for resolutions and meeting minutes.

The Washington DC Biennial Report has a flat fee of $300. File late, and you’re hit with a $100 penalty.

The filing is due by April 1 every other year. Your first report will be due the year after your corporation is formed.

These filings can be easy to forget—which is why we send our clients automatic reminders. Or better yet, let us file for you. With our business renewal service, we can complete and submit your annual report for you for $100 plus the state fee.

Washington DC has a corporate net income tax called a “corporate franchise tax.” It has a flat tax rate of 8.25%. Corporations with gross receipts of $1 million or less must pay a minimum tax of $250. Corporations with gross receipts over $1 million must pay a minimum tax of $1,000.

Have an S corporation? Although S corporations are treated as pass-through entities on the federal level, DC doesn’t treat S corporations the same way. Instead, DC taxes S corporations like regular corporations. What does that mean for you? While you may not have to pay a federal corporate income tax, you still have to pay DC’s corporate income tax.

DC’s sales tax is a flat 6%. However, specific goods and services (especially those aimed at tourists and visitors) have their own rates. For example, commercial parking has an 18% sales tax. The rate for hotels is nearly as steep at 14.95%.

Yes. Your corporation is required to register with the Washington DC Office of Tax and Revenue prior to conducting business and applying for a business license. You can register via MyTaxDC. You’ll need your EIN before you can register in most cases.

At least $220. DLCP charges a base filing fee of $220, but this amount goes up to $550 if your corporation’s authorized capital is more than $100,000. (More than $500,000? The fee rises to $1,100. More than $1 million? The fee tops out at $1,650.)

Expedite services are also available. It costs an extra $50 for 3-day service, and $100 for same-day. (When in-person services are available, this $100 same-day fee is tacked on to hand-delivery.)

Hire us for a one-time fee of $445, including the district filing fees.

It can take up to 15 days for your Washington DC Articles of Incorporation to process. Or, pay extra to have your business formed in either one or three days.

Yes. All entities conducting business within the District of Columbia are required to have a business license. Before you can apply for a license, several steps must be completed. An EIN number must be obtained (in most cases), your LLC must be registered with the DC Office of Tax and Revenue, and you must have received a Home Occupation Permit or Certificate of Occupancy.

Most corporations will be sufficiently licensed with a Basic Business License (renewable every 2 years unless you pay for a 4-year license). These licenses generally cost in the hundreds of dollars, though the actual fee is determined by your specific industry and service. Or, as the form refers to it, your “endorsement.” If you have multiple endorsements—aka your business does multiple things—you will have to pay multiple fees. If your business doesn’t fall under any of the specific endorsement categories, you would apply for the General Business license endorsement, which costs $324.50.

For some license applications you may need an EIN or a certified copy of your Articles of Incorporation. At Northwest, we can streamline the process and get these for you—simply add on these items during checkout.

A corporation formed outside of Washington DC—but which conducts business in the district—is considered a foreign Washington DC corporation. For example, if you incorporated in New York but decide to open a storefront in Washington DC, you would be a foreign Washington DC corporation. This also means you would need to register with the district by filing a Certificate of Authority for Foreign Business Corporation with DLCP. Foreign corporations are required to file the Washington DC Biennial Report each year as well.

Absolutely! We’re happy to start a nonprofit corporation for you. Note that incorporating a Washington DC nonprofit requires a different form. The filing fee is lower as well. Washington DC nonprofits must also file a biennial report every other year, which costs $80.

It’s a conundrum: you need a local number to display on your website and give to customers, but you don’t want to make your personal number quite so…public. We get it. And we’ve got you covered with Northwest Phone Service. We can provide you with a virtual phone number in any state—plus unlimited call forwarding and tons of easy-to-use features. You can try Phone Service free for 60 days when you hire us to form your corporation, and maintaining service is just $9 monthly after that. No contract required.