District of Columbia LLC or Delaware LLC?
If you run your business in District of Columbia, here's what each route costs in state fees.
The short answer
For a business that operates in District of Columbia, forming in Delaware costs about $2,231 more over five years in state fees alone — before paying for a registered agent in Delaware.
Form in District of Columbia
District of Columbia
Articles of Organization (Form DLC-1)$99
Two-Year (Biennial) Report$300 / 2 yrs
Unincorporated business franchise tax minimum$250 / yr
Year one$349
Each year after$400
5-year total$1,949
Form in Delaware, register in District of Columbia
Delaware
Certificate of Formation$110
Annual LLC tax payment (no separate report)$0
LLC annual tax$400 / yr
District of Columbia (foreign registration)
Foreign Registration Statement$220
Two-Year (Biennial) Report$300 / 2 yrs
Unincorporated business franchise tax minimum$250 / yr
Year one$980
Each year after$800
5-year total$4,180
What the fees don't show
- Forming in Delaware while operating in District of Columbia means two sets of reports and two sets of deadlines, adding about $400 a year.
- You need a registered agent with a street address in Delaware. If you don't have one there, that's a paid service every year.
- Out-of-state formation makes the most sense when you raise outside investment, operate in many states, or have a specific legal reason — not as a default.
State fees only, from each state's official fee pages. Not legal or tax advice.