Licenses and permits in Washington, D.C.

The company filing is not a license to do the work. Washington, D.C. uses a Basic Business License for many activities. Which category you need, and whether you need one at all, depends on the work and on whether the business is located in the District.

What’s different in Washington, D.C.

• One license system covers a lot of ordinary businesses. A license may be required, depending on the activity, when you do business to or from the District². A general business license is priced by how long it lasts: $49, $99, or $198³.
• A District location needs a permit before the license. A home needs a Home Occupation Permit. A commercial space needs a Certificate of Occupancy. If the business is outside the District, you need neither a Certificate of Occupancy nor a Home Occupation Permit⁷.
• Clean Hands is a debt limit set by law. You may not owe the District more than $1,000¹¹ in outstanding taxes, fines, penalties, or interest.
• Late renewal penalties are set by law. They run from $75 within 30 days of the lapse to $350¹² after six months. Details are below.

Do this

1. Find the category before you pay. Start with the steps for a Basic Business License and the licensing FAQ. A license may be required, depending on the activity, when you do business to or from the District. Whether a freelancer needs one depends on the activity². The FAQ tells you to review the directory, or to call the Business Licensing Division at (202) 671-4500 and describe the work. Fees differ by category. The FAQ points to the directory for each category’s requirements and fee.
2. Meet the requirements the FAQ lists for every licensed activity. You need a federal EIN or a Social Security number. You need the tax number registered with the Office of Tax and Revenue. If the business is in the District, you need the occupancy permit below. You attest to Clean Hands. A corporation, partnership, or LLC must be registered and in good standing, and must have a registered agent². Register your business and Get your tax IDs are those earlier steps.
3. Get the location permit if the business is in the District. You need a Home Occupation Permit before the business license, if the business is in a residence. Apply with the Department of Buildings. You must live in the District, and the home must be your primary residence. Review is about 24 hours for an application that is not childcare, and about 72 hours to schedule a childcare inspection⁸. The permit page does not print a fee.* Read the total on the application. A commercial space needs a Certificate of Occupancy from the Department of Buildings, if the business is in a commercial space. If the business is outside the District, you need neither a Certificate of Occupancy nor a Home Occupation Permit⁷.
4. Apply for a Basic Business License in BOSS and pay for the term you need. The fee summary prices a general business license at $49 for six months, $99 for two years, and $198 for four years. Renewals cost the same as the original fee³. You need a separate license for each District location, and possibly for each distinct activity at the same location². The general business page lists the same three fees and says to apply online at BOSS.
5. Use the extra lines if they are your business. A single-family rental needs a Basic Business License in the One Family Rental category. The per-unit fees are $21.50, $3.50, and $5, each per unit per year, on top of the license. A vending license is a two-year term at $99 for class A, B, C, or D, plus $55 for an employee badge and a site permit of $300 for a mobile site or $150 for a sidewalk site. A short-term rental license is $99³. A subcontract in construction means your own Basic Business License. The contractor's license does not cover you².
6. Renew the license in BOSS before it lapses. Section 47-2851.10 sets the penalty for renewing a lapsed license: $75 within 30 days after it lapses, $150 after 30 days and before six months, and $350 after six months, plus the other fees. The Department may waive the late fee and penalty under rules issued by its Director¹². The BEST Act page lists the same three amounts. The fee summary still lists $75, $75, and $200³ for enforcement.

Clean Hands

Section 47-2851.07 requires a license applicant to show that they do not owe the District more than $1,000¹¹ in outstanding taxes, fines, penalties, or interest. During the online application, the Clean Hands page says applicants certify that no more than $1,000⁶ is owed for fees, penalties, interest, or taxes. An in-person customer needs the Certificate of Clean Hands. The paper application still prints $100¹⁰. Clear the debt the screen actually shows before you apply.

What you get back

A Basic Business License for the category and the term you paid for, plus a home occupation permit or a certificate of occupancy if the business is in the District. Each one renews on its own date. The license fee you paid is the renewal fee. The penalty, if you are late, is the one section 47-2851.10 sets for how long the license has lapsed.