By: Business in Washington DC

Photo by Steve DiMatteo on Unsplash

The final information is subject to the latest release from the following official websites:

This high-level checklist is for informational purposes to help you understand the tasks required to start your business. Ready to get started? Create a personalized checklist to walk you through the process and track your application process.

1. DECIDE BUSINESS STRUCTURE

  • COST: N/A
  • AVERAGE PROCESSING TIME: N/A

Careful consideration should be given to a company’s legal structure.

The information below, provided by the Corporations Division of Department of Licensing and Consumer Protection can provide general information on each organization type, but strongly suggests you contact an attorney and/or an accountant before making a final decision. Ultimately, you must select the structure that best suits your business needs.

Considerations when choosing a corporate structure

2. CORPORATE REGISTRATION

  • COST: $80-220
  • AVERAGE PROCESSING TIME: 1-15 business days

To operate in the District of Columbia as one of the following business types:

  • a nonprofit and for-profit corporation,
  • limited liability company,
  • limited partnership,
  • limited liability partnership,
  • general cooperative association,
  • limited cooperative association and
  • statutory trust,

you must register via CorpOnline with Superintendent of Corporations of Corporations Division of the Department of Licensing and Consumer Protection.

For other types of businesses, like below, do not need to register.

  • Sole proprietors
  • General partnership
  • Unincorporated Condo association;
  • Unincorporated nonprofit association.

Register your organization

3. TRADE NAME REGISTRATION (“DOING BUSINESS AS”)

  • COST: $55
  • AVERAGE PROCESSING TIME: 1-15 business days

To benefit the business community, the District of Columbia allows registration and use of a trade name, a business name which is different from your true name, if you are an individual, or from your corporation, partnership, or company name. The name used for your registered entity (i.e., corporation, partnership, LLC, etc.) does not need to be registered as your trade name; your registered entity name is considered to be your business’ true name.

The benefits of registering your business name include:

  • Using fictitious or shortened business names in conducting business, including transacting business with vendors and financial institutions (For example: use of fictitious names such as “Scarves by Sandra,” or use of a shortened version of a corporate name such as “Fullerton’s” for “The Fullerton Corporation”)
  • Providing official records of all owners associated to a business name
  • Allowing entities with business names to undertake legal action under that name

Definition of Trade Name

A trade or fictitious name is any name used in business that does not include the full legal name of all the owners of the business. Your trade name is different from your corporate name; your business may have only one corporate name but as many trade names as you desire. “Trade name” means a word or name, or any combination of a word or name, used by a person to identify the person’s business which:

  • (A) Is not, or does not include, the true and real name of all persons conducting the business; or
  • (B) Includes words which suggest additional parties of interest such as “company,” “and sons,” or “and associates.”

Register your trade name (DBA)

4. FEDERAL EIN

  • COST: $0
  • AVERAGE PROCESSING TIME: 1-20 business days

An EIN is needed by many businesses to allow the IRS to associate business taxpayers to tax fillings.

Generally, you will need an EIN if you answer yes to any of the following questions:

  • Do you have employees?
  • Do you operate your business as a corporation, LLC, or partnership?
  • Do you file any of these tax returns: employment excise; or alcohol, tobacco, and firearms?
  • Do you withhold taxes on income, other than wages, paid to a non-resident alien?
  • Do you have a Keogh plan? (a tax-deferred pension account)?
  • Are you involved with an of the following: trusts (except certain grantor-owned revocable trusts), individual retirement accounts, exempt organization business income tax returns, estates, real estate mortgage investment conduits, non-profit organizations, cooperatives, or plan administrators?

What you’ll need to apply:

  • Details on your business structure (type of organization, your role, etc.)
  • Address information for your business
  • Employee information (number expected, first date wages were paid, etc.)
  • Details about activities of your business (principal activity, etc.)

Where to apply?

You can apply for an EIN with the IRS online, by fax, or by mail. To register online, use the IRS EIN Assistant. To apply by fax or mail, review the IRS instructions for details.

Apply online at IRS.GOV

5. DISTRICT BUSINESS TAX REGISTRATION

  • COST: $0
  • AVERAGE PROCESSING TIME: 3-5 business days

Combined Registration Application for District of Columbia Business Taxes/Fees/Assessments

You will need the following information to complete the online tax registration form:

  • Your Federal Employer Identification Number (FEIN), Individual Taxpayer Identification Number (ITIN) and/or Social Security Number (SSN)
  • Note: Your ID Type (e.g. FEIN, SSN, or ITIN), determines which tax accounts your business is eligible for when completing the FR-500.
  • When registering a business with a SSN or ITIN, your eligible tax accounts are:
    • Sales & Use Tax
    • Specialized Sales
    • Street Vendor
    • Ballpark Fee
    • Personal Property Tax
    • Sports Wagering Tax
  • All other tax accounts will require your business to register with a FEIN.
  • Business Name and Trade name must be registered and/or updated with DLCP. Also, ITINS may not be used with the following tax accounts:
    • Corporate Franchise
    • Withholding Wage
    • Withholding Non-Payroll
  • Your legal form of business (e.g. partnership, corporation, sole proprietor)
  • Your primary business address and the addresses for all locations where you will collect sales tax in the District of Columbia
  • The names, titles, home address, SSN and/or ITIN of the proprietor, partners, or principal officers (required)
  • The former entity information if previously registered with the District of Columbia

If you’re a special event promoter hosting an event with at least 50 vendors, please use the How to Register a Special Event Form FR-500B Guide.

The following documents must be attached based on the type of business registering for the FR-500:

Business TypeRequired Documents
CorporationArticles of Incorporation
Limited Liability CompanyArticles of Organization
Register with Trade NameCertificate of Trade Name Registration

 

This is for new registrations only. To make updates to an existing business account (The addition of a Corporate Franchise account requires a new registration) or to submit a web message, please log in to your MyTax.DC.gov account. Should you need further assistance, you may submit an email to the Office of Tax and Revenue’s e-Services Unit (OTR) at [email protected] or call (202) 759-1946.

DC Business Tax Registration

6. CERTIFICATE OF CLEAN HANDS

  • COST: $0
  • AVERAGE PROCESSING TIME: Varies

The District of Columbia “Clean Hands” mandate (DC Code § 47-2862) stipulates that individuals and businesses are to be denied city goods or services (e.g. licenses, permits, grants, contracts) if there is a debt owed to the District of Columbia of more than $100 for fees, fines, taxes, or penalties; and/or failure to file required District tax returns.

The Office of the Chief Financial Officer, Office of Tax and Revenue (OTR) facilitates administration and compliance of the Certificate of Clean Hands (CCH) mandate by providing individuals and businesses online self-service capability to generate or, in certain circumstances, request a “Clean Hands” certificate.

How do I request a Certificate of Clean Hands (CCH)?

Certificate of Clean Hands can be requested via OTR’s online portal, MyTax.DC.gov.

If you are a District of Columbia individual or business taxpayer, you must log-in to your MyTax.DC.gov account to generate the request.

If you do NOT have a MyTax account and are required to pay District of Columbia taxes (business or individual), you must first create a MyTax.DC.gov account. Once the account has been created, you can utilize the self-service feature to execute the request.

If you are not required to pay District of Columbia taxes and require a Certificate of Clean Hands, a manual request can be requested here.

What is evaluated when I request a Certificate of Clean Hands via the MyTax.DC.gov online portal?

The Clean Hands process assesses a taxpayer’s accounts with the Office of Tax and Revenue (OTR) and the Department of Employment Services for liabilities and unfiled returns.

Does a MyTax issued Certificate of Clean Hands have an expiration date?

A Certificate of Clean Hands represents your compliance status at the point-in-time the certificate is issued. Accounts balances can (and do) change through the passage of time and events. For this reason, functionality has been built into the system that allows agencies to confirm the authenticity of a presented certificate as well as to receive an up-to-date compliance status; however, for non-resident applicants, the Certificate of Clean Hands will expire 90 days from the date of issuance. Once the Certificate of Clean hands has expired, applicants must re-apply on MyTax.DC.gov.

Certificate of Clean Hands

7. PUBLIC SPACE PERMIT

Apply for a Public Space Permit from the District Department of Transportation (DDOT) if your market will be located on public space. Note: If your market will be located at a DPR or DCPS location, you will be required to submit a space agreement/permit from the respective agency.

Apply for a Public Space

8. CERTIFICATE OF OCCUPANCY

  • COST: Varies
  • AVERAGE PROCESSING TIME: 1-10 business days

The purpose of a Certificate of Occupancy (“COO” or “C of O”) is to ensure that the use of a building, structure or land in the District of Columbia conforms to the Zoning Regulations (DCMR Title 11) provisions of the DC Construction Codes, and the Green Building Act. In most cases, no person can use a building, structure or land in the District of Columbia for any purpose other than a single-family dwelling, until a valid Certificate of Occupancy has been issued.

Building Permit Fee Schedule

DescriptionFee DescriptionFee AmountEnhanced Fee
Certificate of Occupancy5,000 square feet or less$42 + $33 filing fee10% additional
5,001-50,000 square feet$42 + $0.004/square foot + $33 filing fee10% additional
50,001-100,000 square feet$276 + $0.003/square foot + $33 filing fee10% additional
100,001 sq. ft. or more$471 + $0.0013/square foot. + $33 filing fee10% additional

Source: https://dob.dc.gov/node/1620346

Certificate of Occupancy

9. VENDING BUSINESS LICENSE

  • COST: $99
  • AVERAGE PROCESSING TIME: 5 business days

A Vending Business License Application must be submitted to DLCP with all the required documentation to operate your street vending business. When applying for your vendor business license, you will be required to provide:

  • Corporate Registration, if applicable
  • Notice Business Tax Registration
  • Certificate of Clean Hands
  • DC Health Certificate (Class A licenses only)
  • DC Fire Permit, if using a propane permit
  • Vehicle/Cart Registration
  • Certified Food Protection Manager Identification Card
  • Individual passport-size color photo of owner and all employees for ID badges
  • Driver’s license and/or state identification card

To apply for your vending business license, please contact the Vending Team at [email protected].

10. VENDOR EMPLOYEE BADGE APPLICATION

  • COST: $55
  • AVERAGE PROCESSING TIME: 5 business days

All employees of a street vending business must apply for a Vendor Employee Badge. When applying for a Vendor Employee Badge, be prepared to provide the following:

  • Certified Food Protection Manager Identification Card (Class A only)
  • Individual passport-size color photo for ID badges
  • Driver’s license and/or state identification card

To apply for your vending business license, please contact the Vending Team at [email protected].

Vending Steps to Licensing

The Department of Licensing and Consumer Protection (DLCP) is excited that you are interested in obtaining a Vending Business License in the District.

To help you navigate the application process, below is an outline of the steps to obtain a Class A, B, C or D Vending Business License. If you have questions, you can contact the Vending Team at [email protected].

Class A Vending Business License: Food Vendor

  1. Corporate Registration – Register Your Business and Trade Name with the Corporations Division (If you are applying as a sole proprietor with no trade name, a corporate registration is not required)
  2. Tax Registration & Clean Hands – Register your business with the Office of Tax & Revenue by completing form FR-500. Request a Certificate of Clean Hands. The certificate must be dated within 30 days of submission of your license application.
  3. Health Certificate – Submit a Mobile Food Vending Application with DC Health. Questions about a health certificate should be sent directly to DC Health via [email protected].
  4. Propane Permit – Apply for a Propane Operation Permit with Fire & EMS (if applicable)
  5. Schedule an Inspection – Send an email to [email protected] to request an inspection of your mobile unit. Attach the Vending Letter received from DC Health. The inspection will include the following agencies: DC Health, Fire and EMS Department (FEMS), and DLCP. DLCP will be conducting a measurement of your vending unit. New design standards are forthcoming in the Vending Handbook. A valid government-issued ID and vehicle registration must be presented at the time of inspection.
  6. Health Inspection Report – Follow-up with DC Health to receive your Health Inspection Report – [email protected].
  7. Obtain Police Criminal History Report – A Police Criminal History Report for the District of Columbia and your state of residence, if other than DC, is required for the owner and all employees. Reports must be dated within 30 days of submission of your license application.
  8. To submit an application please visit the DC Business Licensing Portal. Select “Start” from the “Choose goal” drop-down menu, then select “Street Vending Business” from the “choose type of business” drop-down menu. The portal will generate a checklist with all the information you need to submit for your application.

Once your application is received, a licensing specialist will review and followup with payment instructions.

Class B Vending Business License: Merchandise Vendor

  1. Corporate Registration – Register Your Business and Trade Name with the Corporations Division (If you are applying as a sole proprietor with no trade name, a corporate registration is not required)
  2. Tax Registration & Clean Hands – Register your business with the Office of Tax & Revenue by completing form FR-500. Request a Certificate of Clean Hands. The certificate must be dated within 30 days of submission of your license application.
  3. Schedule an Inspection – Send an email to [email protected] to request an inspection of your mobile unit. DLCP will be conducting a measurement of your vending unit. New design standards are forthcoming in the Vending Handbook. A valid government-issued ID and vehicle registration must be presented at the time of inspection.
  4. Obtain Police Criminal History Report – A Police Criminal History Report for the District of Columbia and your state of residence, if other than DC, is required for the owner and all employees. Reports must be dated within 30 days of submission of your license application.
  5. To submit an application please visit the DC Business Licensing Portal. Select “Start” from the “Choose goal” drop-down menu, then select “Street Vending Business” from the “choose type of business” drop-down menu. The portal will generate a checklist with all the information you need to submit for your application.

Once your application is received, a licensing specialist will review and follow up with payment instructions.

Class C Vending Business License: Public Market Manager

  1. Corporate Registration – Register Your Business and Trade Name with the Corporations Division (If you are applying as a sole proprietor with no trade name, a corporate registration is not required)
  2. Tax Registration & Clean Hands – Register your business with the Office of Tax & Revenue by completing form FR-500. Request a Certificate of Clean Hands. The certificate must be dated within 30 days of submission of your license application.
  3. Location Authorization:
    1. Apply for a Public Space Permit from the District Department of Transportation (DDOT) if your market will be located on public space. Note: If your market will be located at a DPR or DCPS location, you will be required to submit a space agreement/permit from the respective agency.
    2. Apply for a Temporary Certificate of Occupancy from the DOB Permit Center if your market will be located on private property.
  4. To submit an application please visit the DC Business Licensing Portal. Select “Start” from the “Choose goal” drop-down menu, then select “Street Vending Business” from the “choose type of business” drop-down menu. The portal will generate a checklist with all the information you need to submit for your application.

*Note: Always when a public market is in operation, the Public Market Manager or a vendor employee shall be on site. The employee must hold a valid Vendor Employee Badge. Market Managers and market vendors are required to comply with all DC Health requirements. Contact DC Health at [email protected] for more information.

Once your application is received, a licensing specialist will review and followup with payment instructions.