How to Form a Corporation in Washington DC

Filing fee: $99 (Articles of Incorporation, standard filing)

Processing time: Typically 15 business days standard; expedited options available through CorpOnline

State agency: DC Department of Licensing and Consumer Protection (DLCP), Corporations Division

Annual report due: April 1 each year (biennial report required for DC corporations)

State tax rate: 8.25% corporate franchise tax on DC-sourced net income; new businesses must register with DC OTR using Form FR-500

To form a corporation in Washington DC, you need to file Articles of Incorporation (Form DBU-1) with the DC Department of Licensing and Consumer Protection, pay the $99 state filing fee, appoint a registered agent with a DC address, and register for DC taxes using Form FR-500. Most founders also need a federal Employer Identification Number (EIN) before they can open a business bank account or hire employees.

DC is a compact jurisdiction, but it has a few requirements that catch people off guard — particularly the FR-500 tax registration, which is separate from your formation filing and due within 30 days of starting business activity.

Choose a name for your DC corporation

Your corporation's name must be distinguishable from any existing business name on record with the DC DLCP. It also needs to include a corporate designator — "Corporation," "Incorporated," "Company," or an abbreviation like "Corp.," "Inc.," or "Co."

You can check name availability through the DC Business Search portal before you file. If your preferred name is available but you're not ready to file yet, DC allows you to reserve it for 60 days by filing a Name Reservation application and paying a small fee.

Appoint a registered agent

Every DC corporation needs a registered agent — a person or business with a physical street address in the District of Columbia who is available during normal business hours to receive legal documents and official state correspondence on your behalf.

You can serve as your own registered agent if you have a DC street address, but many business owners use a registered agent service to keep their personal address off public records and make sure nothing gets missed.

File your Articles of Incorporation

The Articles of Incorporation (Form DBU-1) is the document that officially creates your corporation in DC. You file it with the DLCP Corporations Division through the CorpOnline portal or by mail. The standard filing fee is $99.

Your Articles need to include your corporation's name, the number of authorized shares, your registered agent's name and DC address, and the name and address of each incorporator. Standard processing takes about 15 business days. Expedited options are available through CorpOnline if you need it faster.

Write your corporate bylaws and hold an organizational meeting

Corporate bylaws are your corporation's internal rulebook — they cover how directors are elected, how meetings are run, how shares are issued, and how decisions get made. DC doesn't require you to file bylaws with the state, but you do need to adopt them.

After filing, hold an organizational meeting with your initial directors to formally adopt the bylaws, appoint officers, authorize the issuance of shares, and handle any other startup business. Keep minutes from this meeting in your corporate records — they're part of what shows your corporation is operating as a real, separate entity.

Get an EIN and register for DC taxes

An Employer Identification Number (EIN) is required for your corporation to open a business bank account, file federal taxes, and hire employees — even if you have no employees yet. You apply directly with the IRS at no cost, and the EIN is issued immediately when you apply online. The online application is available Monday through Friday, 7 AM – 10 PM ET.

Separately, you need to register your new corporation with the DC Office of Tax and Revenue (OTR) using Form FR-500. This registration is due within 30 days of starting business activity in DC. It covers DC corporate franchise tax, which is 8.25% on DC-sourced net income, as well as any other DC tax accounts your business needs.

C Corp vs. S Corp in Washington DC

When you file Articles of Incorporation in DC, your corporation is a C Corp by default. C Corps are taxed at the corporate level, and shareholders pay taxes again on dividends — what's often called double taxation. They can have unlimited shareholders and multiple classes of stock, which makes them the standard choice for businesses planning to raise outside investment.

An S Corp is a federal tax election, not a separate entity type. After forming your DC corporation, you can elect S Corp status with the IRS by filing Form 2553. S Corps pass income through to shareholders, avoiding the double taxation issue, but they come with restrictions: no more than 100 shareholders, all of whom need to be US citizens or residents, and only 1 class of stock. A tax professional can help you figure out which structure makes more sense for your situation.