Application Checklist for Starting a Food Business in Washington, DC

Photo by Jay Wennington on Unsplash

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

• https://beta.business.dc.gov/checklist/?business-type=11f8501b-e6eb-ec11-bb3c-001dd830511f

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:

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. 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

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

Certificate of Occupancy

8. HOME OCCUPATION PERMIT

• COST: $72.60
• AVERAGE PROCESSING TIME: Varies

A home occupation is a business, profession or other economic activity conducted full- or part-time in the principal residence of the person conducting the business. This permit is required for operating a business from your home.

• You must live in the District of Columbia
• The home must be your primary residence

Conditions for Home Occupation Permits

A few, but not all, of the basic conditions for a home occupation permit include:

• No more than 25 percent of the dwelling’s floor area, or 250 square feet, can be used;
• No more than two employees who are not dwelling residents, with the exception of child development homes and home offices for physicians and dentists;
• No structural alterations to the dwelling’s interior, if they would make it difficult to return the dwelling to exclusive residential use;
• No more than two vehicles can be used;
• No more than eight (8) trips to the premises daily by visitors, customers and delivery persons;
• No more than eight (8) clients on the premises in any one-hour period;
• No parking or storage of commercial vehicles;
• One exterior sign, unlit and flush-mounted, of no more than 144 square inches; and
• Commercial food preparation activity is not considered a home occupation.

Get a home occupation permit

9. DC HEALTH INSPECTION

• COST: $100-300 for plan review Type A-c: compliance reinspection – $100-$400
• AVERAGE PROCESSING TIME: 1-2 weeks

The Division of Food (DF) inspects approximately 7,500 food establishments in the District of Columbia. Food establishments include delicatessens, bakeries, grocery stores, retail marine markets, ice cream manufacturers, restaurants, wholesale markets, mobile food vendors, hotels, and cottage food businesses.

DC Health Inspection

10. BASIC BUSINESS LICENSE

• COST: Varies depending on the license
• AVERAGE PROCESSING TIME: Varies up to 30 business days

Business activity in and/or to the District requires owners/operators to be licensed according to the business activity conducted (e.g. convenience stores, home improvement contractors, residential rentals, restaurants).

Each licensed activity has a set of requirements, see categories below, but all licenses have to complete the four requirements outlined in the Steps to Obtain a Basic Business License.

Major license categories:

• Beauty & Grooming Services
• Charitable Services
• Employee/Independent Salesperson Licenses
• Employment Services
• Entertainment Services
• Flammable Product Sales & Services
• Food Services
• General Sales/Services Business
• Health Services
• Lodging
• Rental Housing
• Regulated Businesses

For each category, other than the last category (“Regulated Businesses”), the requirements are identical for all licenses in that category. However, the fee schedule may vary depending on the type of license.

Get a business license

11. LIQUOR LICENSE

• COST: $300-6000
• AVERAGE PROCESSING TIME: Varies (1-6 months)

ABCA’s priority is to ensure only qualified candidates can obtain alcoholic beverage licenses. As a result, licensing processes are thorough. It may take several months to move through the entire licensing process depending on the transaction, which includes several steps:

• Application submission and acceptance
• Alcoholic Beverage Control Board (Board) approval
• License issuance

ABC licenses are issued in the District based on license type and class.

License Types

There are several alcoholic beverage license types:

1. Manufacturer: Operates a plant that manufactures spirits, wine (including cider) or beer.
2. Wholesaler: Sells alcoholic beverages to other District ABC licensees for resale.
3. Off-premise retailer: A stores where alcoholic beverages may be purchased but may only be consumed off of the licensed premises or an Internet site where alcohol can be ordered online.
4. On-premise retailer: An establishment where alcoholic beverages may be purchased and consumed on the licensed premises. On-premises retailers include restaurants, taverns, nightclubs, hotels, bed and breakfasts, theaters, museums, sports facilities, passenger-carrying ships and trains.
5. Caterer: Sells and serves alcoholic beverages at catered events as part of the licensee’s preparation and service of food.
6. Festival License: Temporarily permits the sale and consumption of alcoholic beverages at sporting or performing arts events for up to 15 days.
7. Temporary License: Temporarily permits the sale and service of alcoholic beverages for up to four days at banquets, picnics, bazaars, fairs or similar public gatherings.
8. ABC Manager: Individual certified to manage one or more ABC establishments.
9. Solicitor: Permitted to transport samples of alcoholic beverages to ABC-licensed establishments on behalf of a vendor and to take orders on behalf of the vendor that the solicitor represents.

License Classes

License class determines the kinds of alcoholic beverages an establishment can sell.

• Manufacturer Class A: Permits the production of spirits and wine (wine includes cider).
• Manufacturer Class B: Permits the production of beer.
• Manufacturer Class C: Permits the production of baked goods with a maximum of five percent of alcohol per volume.
• Wholesaler Class A: Permits the distribution and sale of spirits, beer and wine.
• Wholesaler Class B: Permits the distribution and sale of beer and wine.
• Off-premises Retailer Class A: Permits a store to sell spirits, beer, and wine for consumption off of the licensed premises.
• Off-premises Retailer Class B: Permits a store to sell beer and wine for consumption off of the licensed premises.
• Internet Class A: Permits a retailer that does not have a physical location to sell spirits, beer and wine online.
• Internet Class B: Permits a retailer that does not have a physical location to sell beer and wine online.
• On-premises Retailer Class C: Permits the sale, service and consumption of spirits, beer and wine at a restaurant, tavern, nightclub, hotel, bed and breakfast and multipurpose facility. The licenses are further defined as follows by type of establishment:
  • Restaurant: C/R license
  • Tavern: C/T license
  • Nightclub: C/N license
  • Hotel: C/H license
  • Bed and Breakfast: C/B license
  • Multipurpose facility: C/X license
• On-premises Retailer Class D: Permits the sale, service and consumption of beer and wine at a restaurant, tavern, nightclub, hotel and multipurpose facility. The licenses are further defined as follows:
  • Restaurant: D/R license
  • Tavern: D/T license
  • Nightclub: D/N license
  • Hotel: D/H license
  • Bed and Breakfast: D/B license
  • Multipurpose Facility: D/X license
• Club Class C: Permits consumption of spirits, beer and wine at a club.
• Club Class D: Permits consumption of beer and wine at a club.
• Common Carrier Class C: Permits the sale, service, and consumption of spirits, beer, and wine on a passenger carrying train or boat.
• Common Carrier Class D: Permits the sale, service, and consumption of beer and wine on a passenger carrying train or boat.
• Temporary License Class F: Temporarily permits the sale and consumption of beer and wine for up to four days at banquets, picnics, bazaars, fairs or similar public gatherings.
• Temporary License Class G: Temporarily permits the sale and consumption of spirits, beer and wine for up to four days at banquets, picnics, bazaars, fairs or similar public gatherings.
• Festival License Class H: Temporarily permits the sale and consumption of beer and wine at sporting, cultural or performing arts events for up to 15 days.
• Festival License Class I: Temporarily permits the sale and consumption of spirits, beer and wine at sporting or performing arts events for up to 15 days.
• Farmer’s Market Class J: Permits district manufacturers, brew pub, wine pub or distillery to operate as a vendor for tastings of the product it produces, including beer and wine.
• Farmer’s Market Class K: Permits district manufacturers, brew pub, wine pub or distillery to operate as a vendor for tastings of the product it produces, including spirits, beer and wine.

Apply for Liquor License

12. GENERAL BUSINESS LICENSE

• COST: $99
• AVERAGE PROCESSING TIME: 30 minutes during business hours

If you plan to sell items other than food (i.e. merchandise, etc.), a General Business License is needed in addition to the Basic Business License you already obtained. Go to the My DC Business Center to begin
the process.

My DC Business Center

13. CIGARETTE LICENSE

• COST: $147.40
• AVERAGE PROCESSING TIME: 30 minutes during business hours

If cigarettes will be sold at your business, a Cigarette License is required. Go to the My DC Business Center to begin the process.

My DC Business Center

14. CONSTRUCTION PERMIT

• COST: Varies
• AVERAGE PROCESSING TIME: Varies

If you plan to do renovations or major construction to your location, visit the main permitting page on the DOB website to understand the permitting process and which permit type you need to apply for.

DOB Permit Wizard

15. PUBLIC HALL LICENSE

• COST: $1,534.50
• AVERAGE PROCESSING TIME: Varies

If live entertainment is provided and your business will be charging at the door, a public hall license is required. The Certificate of Occupancy may need be updated because the purpose of your space has changed.

Apply for a public hall license