Incorporate in the District Of Columbia

The District of Columbia is unique as a jurisdiction to form a corporation or a limited liability company.

It is not a state, but it is the Capitol of the United States of America. It is a popular choice for businesses that operate in the realms of politics, law and defenses.

Benefits of incorporating in DC:

Protection of personal assets

Entrepreneurs incorporating in the District of Columbia should feel confident knowing that their personal assets are protected. Corporations and limited liability companies separate the assets and liabilities of companies from the personal assets of the business owner.

Enhanced credibility

American companies are more eager to partner or do business with a C corp or an LLC that is based in the US. Whether starting a new business or incorporating an existing one, incorporating makes your business seem more qualified to companies such as eBay, PayPal and Amazon.

Your corporate name can boost your brand

The District of Columbia requires that a C corporation or an LLC must not have a name that is the same or could be confused with a business already in existence. To make sure your business name is eligible Inc. Plan can help you with choosing a unique C-Corp or LLC name. A distinctive corporate name enhances your company’s reputation and also helps protect the identity of your brand.

Tax flexibility and benefits

Regardless of the entity type you choose for your business, every company is subjected to both a biennial fee and a tax on corporate income.

Residency Requirements

The District of Columbia does not have residency requirements for owners or directors of a company. No Company officials are required to have a physical address in DC. However, before your firm is legally eligible to operate, make sure you possess all the required business licenses, permits, and tax registrations. If you need help, Inc. Plan can help you fulfill multiple requirements.

Other incorporating requirements

Both, C-Corps and LLCs must have one or more members and is important for a company to own the right business licenses in order to be eligible. Additionally, the names and addresses of directors, members and managers must be listed in the formation documents.

Requirements for forming an LLC in DC:

When forming a Limited Liability Company certain steps must be taken on an ongoing basis to keep the business in compliance.

Name requirements for LLCs

In D.C., limited liability companies must have distinctive names ending with “Limited liability company”. Also, it may use abbreviations like “LLC” or “L.L.C”. However, the terms “Bank”, “Insurance” and “Trust” are restricted and need special approval from District authorities.

LLC filing requirements

The formation document required for limited liability companies in the District of Columbia is called Articles of Organization. LLCs incorporated in the District of Columbia must also file a biennial report which is due on June 16.

Required information for the Articles of Organization

LLC owners will have to provide the name and address of their registered agent. The RA must own a physical D.C. address and should be available to receive significant legal and financial documentation.

LLC taxes and fees

LLCs are subjected to an annual franchise tax based on the business income. The minimum franchise tax is $250 if the company’s gross receipts do not exceed $1 million.

Requirements for forming a C corporation in DC:

Each state has its requirements when to comes to incorporation. Here are the essential requirements for organizations formed in DC.

Name requirements for C corporations

The District of Columbia requires that any new company use a distinguishable corporate name. The company name must include the words: “Corporation”, “Company”, “Incorporated”, “Limited” and the abbreviations: “Corp.”, “Inc.”, “Co.”, “Ltd.”. The terms “Bank”, “Insurance” and “Trust” need a special approval from the district in order to be included in the corporation name.

Filing requirements in DC

The document required for forming a C corporation in the District of Columbia is called the Articles of Incorporation. C-corps based in the District of Columbia must file a biennial report by April 15.

Required information for the Articles of Incorporation

D.C. Articles of Incorporation must list authorized shares and their par value. DC also requires that new companies list a registered agent with a physical address in the District of Columbia. Inc. Plan (USA) can file all the necessary documentation for you and also provide qualified registered agent service.

Taxes and fees requirements

Any C-corporation incorporated in D.C. is subjected to an annual franchise tax based on business’s income. The tax is calculated by multiplying a 9.975% tax rate by the company’s net income. However, if the corporation owns no more than $1million in gross receipts, than the District of Columbia requires owners to pay a minimum annual tax of $250.

If you are ready to get started you can fill out our application or call 1-302-428-1200 for a Free 30 Minute Live Consultation.

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