Washington DC

An LLC in Washington DC is created by filing the Articles of Organization for Domestic Limited Liability Company, DLC-1, with the District of Columbia Corporations Division. The certificate must contain information about the LLC’s name and address; the name and address of the registered agent, the name and address of the organizer, the name of at least one of the LLC members, and whether the LLC will have one or more series. The Articles can be filed online at the District of Columbia Corporations Division website or through legalzoom.

There are provisions for the name of a Washington DC LLC as well, they must contain the words “Limited Liability Company”, or “L.L.C.”. The LLC name must be distinguishable from the names of other business entities that are on file with the District of Columbia Corporations Division. The word “Bank” cannot be used unless the LLC has some purpose pertaining to banking or finance.

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What is an LLC?

LLC refers to a Limited Liability Company, and it is organized by business owners. They have fewer corporate formalities and can be taxed by the IRS as a sole proprietorship, S corporation, or C corporation.

Each state has different requirements and regulations regarding the formation of an LLC. Business owners should check with state laws when considering forming an LLC.

Owners of LLCs are known as members, they can be individuals, corporations, other LLCs, or foreign entities. There is no limit on the number of members an LLC can have. In most states, “single-member” LLCs are allowed, where there is only one owner involved in managing the LLC.

The IRS will treat the LLC as a corporation, partnership, or included in the LLC owners personal tax return. A domestic LLC with at least two members is classified as a partnership for federal income tax purposes unless they file Form 8832 and elect to be treated as a corporation.

LLCs carry tax advantages over other forms of business such as limited partnerships. The owners of an LLC do not assume personal liability for business debt, and any losses of the LLC can be used as tax deductions against active income.

An LLC can be formed through the state business formation process or consulting with LegalZoom.

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