Department of Consumer & Regulatory AffairsLINDA K. ARGO, DIRECTOR

October 13, 2010

G O V E R N M E N T O F T H E D I S T R I C T O F C O L U M B I A

Corporate Registration and Business Licensing Overview

Business and Professional Licensing AdministrationHAROLD B. PETTIGREW, JR., ADMINISTRATOR

Doing Business 2.0

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THE LICENSING PROCESS

STEP- BY- STEP

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THE LICENSING PROCESS STEP-BY-STEP

Step 1: Determine The Corporate StructureHow will I register my business?

There are many options for registering a business as follows: Corporation (non-profit or for profit), Limited Labiality Company (LLC), Partnerships (Limited Partnership (LP), Limited Liability Partnership (LLP), General Partnership (GP), Corporative Association, Sole Proprietor (SP)

DCRA Corporations Division registers all the above listed entities (except Sole Proprietor)

If an entity / sole proprietor plans to use a trade name (doing business as - dba) then the trade name should be registered with DCRA’s Corporations Division

For more information please visit http://dcra.dc.gov/DC/DCRA/For+Business/Corporate+Registration

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THE LICENSING PROCESS STEP-BY-STEP

CORPORATIONS ACTIVITY | STATISTICS BY YEAR

New Businesses:11,000 registered annually

Certified Documentation/Status Certificates:17,500 issued annually

Miscellaneous/Amendments (other corporate filings):11,000 processed annually

Reports:32,500 processed annually

Total Transactions:70,000 processed annually

Active Corporate Entities:75,000

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THE LICENSING PROCESS STEP-BY-STEP

Corporate Online Services:

The Corporations Division will be launching a new application that will enable customers to file online. The online services will include the following corporate filings:

Formation filings for domestic entities (i.e. articles of incorporation)

Registration filings for foreign entities (i.e. certificate of authority)

File biannual reports Request for good standing certificate Trade name registration Name reservation filing

Target launch December 2010

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THE LICENSING PROCESS STEP-BY-STEP

Step 2: Employer Identification Number (EIN):

Also known as the “Tax Identification Number (TIN)” EIN is assigned by the Internal Revenue Service (IRS) IRS uses the EIN number to identify business taxpayers EIN numbers are required if a business is doing the following:

- Hiring employees- Operating as a corporation, LLC or partnership- Filing tax returns for employment- Using a tax-deferred pension account

For more information visit www.irs.gov To apply online, go to:

https://sa2.www4.irs.gov/modiein/individual/index.jsp

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THE LICENSING PROCESS STEP-BY-STEP

Step 3: Certificate of Occupancy:

A Certificate of Occupancy or Home Occupation Permit is issued through DCRA’s Permit Center:

From a Building: If operating a business from any commercial property a Certificate of Occupancy (C of O) is required for all commercial properties

From a Home: If operating a business from your primary residency (home) a Home Occupation Permit (HOP) is required. Only 25% of the dwelling’s floor area, or 250 square feet, can be used for the business operation

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THE LICENSING PROCESS STEP-BY-STEP

Expedited Home Occupation Permit (eHOP) Launching November 2010

Customers can apply for an Expedited Home Occupation Permit (EHOP) online.

The DC Office of Tax and Revenue will verify that the applicant is the owner of the property

Must be the principal place of residence If the applicant is a tenant, they must apply in person and bring a DC

driver’s license to verify residency The tenant must provide written authorization from the landlord Only 25% of the dwelling’s floor area, or 250 square feet, can be used

for the business operation

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THE LICENSING PROCESS STEP-BY-STEP

Step 4: DC Business Tax Identification Number:

The FR-500 is a DC Combined Business Tax Registration document that:

- Provides ownership information - Identifies the location of the business- Identifies the type of business entity

The Certification of Registration is mailed to the business owner once it is reviewed and approved by the Office of Tax and Revenue

For further information visit www.otr.cfo.dc.gov

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THE LICENSING PROCESS STEP-BY-STEP

Step 5: Clean Hands Certificate:

The Cleans Hands form is an affidavit to verify that a potential business owner does not owe no more than $100 to the District Government

If the business owner owes more than $100 it will need to be resolved with the Office of Tax (OTR) and Revenue before a Clean Hands Certificate is approved

A business license or permit will not be issued or approved without a Clean Hands Certificate

The Basic Business License application-packet includes the Clean Hands Certificate form

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THE LICENSING PROCESS STEP-BY-STEP

Step 6: Basic Business License Application: All businesses are required to obtain a Basic Business License (BBL) BBL’s are renewed every two years There are 16 endorsements and 165 categories under the Basic Business

License program Certain licensing categories require additional information to include:

- Bond- Insurance- Criminal History Check- Other District Agency Signatory Approval (i.e. Department

of Health)

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THE LICENSING PROCESS STEP-BY-STEP

BBL Online Renewals:

Certain business licenses can be renewed online. Please review your renewal bill to determine if you can renew online. The following items are required:

• BBL Number: This number is printed on your renewal bill• FEIN: The Federal Employer Identification Number of your business• PIN: A Personal Identification Number that is sent to you with your

renewal bill• Credit Card: Payment with Visa, MasterCard, or Discover is required

for renewal

You can renew your business application online 30 days prior to the expiration of your current license. 

DCRA must verify the information prior to renewing your license.

To renew online, go to: https://cpms.dcra.dc.gov/osr/

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THE LICENSING PROCESS STEP-BY-STEP

BUSINESS LICENSING ACTIVITY

Top 5 licensing categories: One family rental, home improvement contractors, home improvement salesman, restaurants and general business

New Business Licenses: 9,000 processed

Renewals (including online renewals): 12,000 processed

Total Active Licenses: 45,000

SMALL BUSINESSRESOURCE CENTER (SBRC)

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SMALL BUSINESS RESOURCE CENTEROVERVIEW

The Small Business Resource Center (SBRC) will provide workshops and one-on-one technical assistance to

customers seeking assistance with navigating the District’s regulatory environment.

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SMALL BUSINESS RESOURCE CENTERPARTNERSHIPS

Washington, DC Economic Partnership

DC Women’s Business Center

DC Small Business Development Center at the DC Chamber of Commerce Foundation

Washington Area Community Investment Fund

Internal Revenue Service (IRS)

DC Bar Pro Bono Program

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SMALL BUSINESS RESOURCE CENTERSERVICES

The SBRC will provide service, which will include:

One-on-One Technical Assistance Sessions: Business Licensing Corporate Registrations

Workshops: Starting a home-based business Navigating the Basic Business License (BBL) process Establishing a corporate entity Navigating Internal Revenue Service Requirements

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SMALL BUSINESS RESOURCE CENTERLOCATION

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VISIT US ATWWW.DCRA.DC.GOV

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QUESTIONS