District of Columbia: what each business structure costs a year
At $100,000 profit, an LLC taxed as an S corp costs $4,006 a year less than a sole proprietorship in District of Columbia. All figures are 2026 tax and fees.
$4,006 a year
less as an LLC taxed as an S corp than as a sole proprietorship in District of Columbia, at these numbers.
District of Columbia, 2026: $100,000 profit, single filer
| Structure | Yearly cost | vs yours | To set up | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Sole proprietorship yours | $30,600 | $0 | |||||||||||||||||
Itemized: $30,600
| |||||||||||||||||||
| Single-member LLC | $30,693 | +$93 | $99 | ||||||||||||||||
Itemized: $30,693
| |||||||||||||||||||
| LLC taxed as an S corp lowest | $26,594 | −$4,006 | $99 | ||||||||||||||||
Itemized: $26,594
| |||||||||||||||||||
| S corporation | $26,594 | −$4,006 | $99 | ||||||||||||||||
Itemized: $26,594
| |||||||||||||||||||
| C corporation | $32,232 | +$1,632 | $99 | ||||||||||||||||
Itemized: $32,232
| |||||||||||||||||||
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What these figures count
- State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
- Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
- The 20% qualified business income deduction with its income limits and the professional-service rule.
- Yearly report fees, and a cost you can change for payroll and the business tax return.
Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.
When an S corp election pays in District of Columbia
Electing S corp tax treatment for an LLC starts to pay in District of Columbia at about $45,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.
District of Columbia has no pass-through entity tax electionbilltrack50.com.
| Profit | Sole prop | LLC | LLC as S corp | C corp |
|---|---|---|---|---|
| $30,000 | $6,649 | $6,759 | $7,638 | $7,970 |
| $50,000 | $13,120 | $13,228 | $12,569 | $14,111 |
| $75,000 | $21,357 | $21,464 | $18,263 | $22,091 |
| $100,000 | $30,600 | $30,693 | $26,594 | $32,232 |
| $150,000 | $51,572 | $51,663 | $45,023 | $55,160 |
| $200,000 | $72,981 | $73,071 | $64,244 | $77,270 |
| $300,000 | $117,007 | $117,068 | $103,440 | $122,376 |
Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.
State fees and taxes in District of Columbia
| LLC | Corporation | ||
|---|---|---|---|
| Filing to form | $99Articles of Organization (Form DLC-1) | $99Articles of Incorporation of Domestic Business Corporation (Form DBU-1) | dlcp.dc.gov |
| Yearly report | Biennial Report, $300 every two years | Biennial Report, $300 every two years | dlcp.dc.gov |
| Report due | April 1 every second year, first due April 1 of the year after formation | April 1 every second year, first due April 1 of the year after formation | |
| DC unincorporated business franchise tax8.25% of net income × 0.7, minimum $250 | yes | no | otr.cfo.dc.gov |
| DC corporation franchise tax on S corporations8.25% of net income, minimum $250 | if taxed as S corp | S corp only | otr.cfo.dc.gov |
- District of Columbia taxes personal income in 7 brackets, from 4% to 10.75% (2026, single filer). otr.cfo.dc.gov
- C corporations pay 8.25% of net income, with a minimum of $250. otr.cfo.dc.gov
- District of Columbia does not recognise S corporations: they pay state tax as C corporations.
- New employers pay state unemployment tax of 2.7% on the first $9,000 of each employee's wages. That applies to an owner's salary from an S or C corp. does.dc.gov
- Biennial report is $300 every two years. Late fee $100. Filed with DLCP, not a Secretary of State.
- $99 applies to authorized capital up to $100,000 (shares valued at $1 if no par). Higher capital costs $550 to $1,650. Biennial report is $300 every two years.
Not in the calculator: DC is a single jurisdiction with no separate city or county income tax. Most businesses also need a DC Basic Business License from DLCP, with fees that vary by category.
Switching calculators for District of Columbia
- Sole proprietorship vs LLC
- LLC vs S corp
- Sole proprietorship vs S corp
- S corp vs C corp
- LLC vs C corp
- Sole proprietorship vs C corp
- LLC taxed as S corp vs S corporation
- What an LLC costs in District of Columbia
- Take-home pay in District of Columbia
- Quarterly estimated tax in District of Columbia
By profession in District of Columbia
- Management consultant
- Software developer
- Graphic designer
- Photographer
- Real estate agent
- Insurance agent
- Financial advisor
- Therapist
- Physical therapist
- Nurse practitioner
- Physician
- Dentist
- Lawyer
- Accountant
- Freelance writer
- Web developer
- Marketing consultant
- Electrician
- Plumber
- General contractor
- Truck driver
- Hair stylist
- Personal trainer
- Rideshare driver
Questions
Is an S corp worth it in District of Columbia?
On these figures, from about $45,000 of profit. At $100,000 an LLC taxed as an S corp costs $26,594 a year against $30,693 for a plain LLC, $4,099 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.
How much does an LLC cost per year in District of Columbia?
The state charges Biennial Report, $300 every two years. LLCs can also owe DC unincorporated business franchise tax. Forming one costs $99.
Does District of Columbia recognise the S corp election?
No. District of Columbia taxes S corporations as C corporations at the state level, and the calculator does the same. DC does not recognize the federal S election. S corporations file Form D-20 and pay the 8.25% corporation franchise tax.
What income tax does District of Columbia charge?
District of Columbia taxes personal income in 7 brackets, from 4% to 10.75% (2026, single filer). C corporations pay 8.25% of net income, with a minimum of $250.
How this page models District of Columbia (1)
- The UBT estimate assumes owners take the full owner salary allowance the D-30 instructions permit (capped at 30 percent of DC net income), and it keeps the $250 minimum because the site models businesses with DC gross receipts of $1M or less (the $1,000 minimum applies only above $1M) and with gross income above the $12,000 level below which a D-30N affidavit is filed instead of Form D-30.
Sources checked 2026-10-23. Each figure links to the state or IRS page it comes from.
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