After forming a corporation, you must undertake certain steps on an ongoing basis to keep your business in compliance. These steps are also important in preserving the limited liability a corporation provides its owners. This guide outlines the ongoing requirements for DC corporations.
Corporate records
DC corporations must keep the following items with their corporate records at the registered agent’s office or at the principal place of business:
- Books and records of account
- Minutes of shareholder and director meetings
- A record of shareholders, including names, addresses and the class of shares held by each
Corporate taxes and fees
The following are taxation requirements and ongoing fees in DC:
- Annual report and franchise tax. DC requires corporations to file a biennial report. The first report must be filed on or before April 15 of the second year following incorporation. The fee is $250. DC also has a franchise tax that is due by the 15th day of the 5th month after the end of the corporation’s tax year. The minimum franchise tax is $100.
- Taxes. For complete details on state taxes for DC corporations, visit Business Owner's Toolkit or DC's website.
- Federal tax identification number (EIN). An EIN is required for corporations that will have employees. Additionally, most banks require an EIN in order to open a business bank account.
- State tax identification number. DC does not require a state tax identification number.
Business licenses
Business licenses and/or permits are required for most businesses. The BizFilings Business License Application Package can help you stay on top of these requirements.
S corporation election
DC does not recognize the federal S corporation election and does not require a state-level S corporation election. You can still have an S corporation in DC. The S corporation will only be an S corporation for federal tax purposes and not for state tax purposes. For state purposes, the corporation will be treated as a regular C corporation.
Additional DC information
View the following additional resources BizFilings has for forming and maintaining companies in DC:
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