Washington DC Business License: Who Needs One & How to Apply (2025)
As of 2025, Washington DC requires all businesses to obtain a general business license in order to conduct business activity within the state.
In addition to a Washington DC business license, your business may require additional federal, state, and local licenses depending on your business’s location and industry.
This article will cover:
What Is a Business License in Washington DC?
A business license is a permit issued by a local, state, or federal body that allows businesses to perform a specific business activity and/or operate legitimately.
A state-issued business license is required for all businesses operating in Washington DC. Not obtaining a business license can result in fines, legal action, or other penalties under Washington DC law.
In addition to the state-issued business license, your business may be obligated to obtain additional licenses or permits.
For example:
- A restaurant in Georgetown will need a Food Establishment License from the DC Department of Licensing and Consumer Protection (DLCP), a Basic Business License from the DLCP’s Business Licensing Division, and Sales and Use Tax Registration from the DC Office of Tax and Revenue.
- A lobbying consulting firm in Dupont Circle will need professional licensing through DLCP’s Occupational and Professional Licensing, a Basic Business License from the DLCP, and Sales and Use Tax Registration from the DC Office of Tax and Revenue for any taxable services provided.
- A food truck operating in Adams Morgan will need a Mobile Food Vending Unit permit from DCLP, a Class A or B Vending Business License from DLCP’s Vending Division, and Sales and Use Tax Registration from the Office of Tax and Revenue.
- A government contracting firm in Capitol Hill will need a Basic Business License from DLCP, Sales and Use Tax Registration from the Office of Tax and Revenue, and potentially professional licenses depending on the specific services provided (engineering, architecture, etc.) through DLCP Professional Licensing.
Note: These examples are simplified to illustrate common licensing requirements and do not list every permit that may be needed. Operating without proper licensing can result in penalties including fines, business closure orders, and legal complications. Always research the specific requirements for your business type and location.
Do I Need a Washington DC Business License?
Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:
Washington DC Business Licensing at a Glance
| Jurisdiction | Business Licenses | Who Needs It & Where to Apply |
|---|---|---|
| State | Basic Business License | Required for most businesses operating in DC. Apply through the DLCP Business Licensing Division. |
| Sales Tax Permit | Businesses selling taxable goods or services, or purchasing items for resale. Apply via the DC Office of Tax and Revenue. | |
| Professional Licenses | Required for professions (e.g., insurance agents, contractors, barbers, etc). Apply via the Department of Licensing and Consumer Protection. | |
| Industry-Specific State Licenses | Businesses in regulated industries (e.g., food, liquor, environmental, vehicle dealers). Apply through the relevant Washington DC agency. | |
| Federal | Industry-Specific Licenses | Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS) |
*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney.
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How to Get a Business License in Washington DC
The process of obtaining a business license in Washington DC will depend on the permit in question, but generally involves completing the following steps:
1. Form a Business Structure & Obtain an Employer Identification Number (EIN)
We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line.
This also gives other benefits depending on the business model, such as:
- Personal liability protection
- Improved legitimacy
- Larger access to loans and corporate finance
We generally recommend almost all small business owners to form a limited liability company (LLC). This offers personal liability protection, is extremely affordable, and offers a ton of flexibility when it comes to how it can be taxed and managed.
Want to make sure your LLC is formed correctly? Northwest can handle your Washington DC LLC formation with first year free registered agent service and excellent customer support.
Note: You should obtain an EIN after forming your LLC. See our How to Get an EIN overview for more information.
2. Apply for the Right Business License in Washington DC
This step will depend on the business license in question.
Washington DC State Business Licenses
Below we’ve included the most common business licenses that are required on a state level.
Washington DC Basic Business License
You can register for a Washington DC business license online or in person.
The registration fee will vary depending on if you need a Basic Business License with a specific endorsement or if you need a General Business License.
Apply Online With My DC Business Center
Apply OnlineFee: Varies based on industry
Office Address:
1100 4th St. SW
2nd Floor
Washington, DC 20024
In-Person Filing: Walk-in customers can visit the Business License Center and complete the application at a My DC Business Center kiosk.
Washington DC Sales Tax License
You can register for a Washington DC sales tax license online by submitting Form FR-500.
Apply Online With MyTax DC
Apply OnlineFee: None
Keep in mind that you’ll need specific information in order to apply. For more details on this, you can have a look at our Washington DC Sales Tax guide.
Tip: Your business does not need to pay sales and use tax when purchasing goods for resale. Have a look at the MyTax.DC.gov User Guide for more information.
Washington DC Professional Licenses
If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:
- Board of Architecture, Interior Design & Landscape Architects: Licenses architects, interior designers, landscape architects, and professional design firms.
- Real Estate Commission: Oversees licensing for real estate brokers, salespersons, property managers, and real estate appraisers.
- Board of Industrial Trades: Regulates construction trade licenses including electricians, plumbers, HVAC technicians, elevator mechanics, asbestos workers, and steam engineers.
- Board of Barber and Cosmetology: Licenses barbers, cosmetologists, estheticians, nail technicians, body artists, and related establishment owners and managers.
- DC Health Licensing Boards: Handles all health-related professional licenses including physicians, nurses, dentists, pharmacists, physical therapists, psychologists, social workers, and other healthcare professionals.
- Board of Accountancy: Regulates certified public accountants (CPAs) and public accountants.
For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides.
Industry-Specific State Licenses
Some Washington DC businesses require additional licenses based on the specific industry they operate in. These licenses are regulated by different state agencies depending on your business activities. Whether you’re preparing food, selling alcohol, or dealing used vehicles, you’ll need to meet specific licensing requirements before operating.
Here are some common examples of industry-specific state licenses in Washington DC:
- Liquor License: Required for businesses that manufacture, distribute, or sell alcoholic beverages. Regulated by the Alcoholic Beverage and Cannabis Administration (ABCA). The District offers multiple license classes including on-premises licenses for restaurants and bars, off-premises licenses for retail stores, and manufacturer licenses for breweries and distilleries.
- Motor Vehicle Dealer License: Required for businesses selling motor vehicles. Regulated by both the Department of Licensing and Consumer Protection (DLCP) for the basic business license and DC DMV for dealer registration. Must maintain proper insurance coverage and meet facility requirements.
- Child Care License: Required for child development centers and homes caring for children. Regulated by the Office of the State Superintendent of Education (OSSE) Division of Early Learning. Includes Child Development Center licenses and Child Development Home licenses with specific education and safety requirements.
- Food Establishment License: Required for restaurants, food trucks, and businesses preparing or serving food. Regulated by the DCLP. Must pass health inspections and meet food safety requirements.
Note: This is not a complete list. Licensing requirements vary by industry and business model. For more, consult the relevant agency.
Washington DC Environmental Permits
If your business activities could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the Department of Energy and Environment (DOEE).
Examples of industries regulated here include:
- Underground Storage Tank Registration
- Air Quality Permits
- Stormwater Management Permits
- Hazardous Waste Generator ID
- Asbestos Abatement Permits
- Wetlands and Stream Permits
- Lead Renovation/Abatement Permits
- Water Discharge Permits
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Federal Business Licenses for Washington DC LLCs
If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate.
A full list of industries regulated at a federal level can be found below:
- Agriculture: Overseen by the U.S. Department of Agriculture
- Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
- Aviation: Overseen by the Federal Aviation Administration.
- Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
- Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
- Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
- Maritime Transportation: Overseen by the Federal Maritime Commission.
- Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
- Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
- Transportation and Logistics: Overseen by the U.S. Department of Transportation
Washington DC Business License Renewal
Depending on your business license, you may need to renew it periodically — usually every two or four years.
This is not required for a Sales and Use Tax Registration unless you change the form of your business (e.g., start as a sole proprietor and then convert into a corporation, etc.). The DC Office of Tax and Revenue does not require periodic renewal of your sales tax registration, and it remains valid as long as you continue to file required tax returns and maintain compliance with tax obligations.
Basic Business Licenses must be renewed every two or four years within 75 days before the expiration date using the My DC Business Center website.
Some local permits and professional licenses must be renewed annually or biennially. This includes certain health department licenses and professional certifications. However, other permits, such as signage permits and fire safety permits, typically remain valid unless the underlying business conditions change.
Having said that, this will depend on both your location and the license in question.
Washington DC Business License FAQs
Washington DC doesn’t require a general business license that applies to all businesses. However, depending on your location and industry, you’ll likely need specific permits or licenses at the local, District, or federal level. Most businesses need at least a Sales and Use Tax Registration if they sell taxable goods or services.
This depends on your business type and location. Common requirements include: a Sales and Use Tax Registration (free), local permits such as health, zoning, and certificate of occupancy permits, professional licenses for regulated professions through DLCP or DC Health, and industry-specific licenses like liquor, childcare, or environmental permits.
The Sales and Use Tax Registration is free. Other license costs vary significantly – local permits may range from $35 to 500+, professional licenses can cost $100 to 800+, and specialized licenses like liquor permits can be $1,000 to 10,000+ depending on the license class and establishment size.
The Sales and Use Tax Registration does not require renewal unless you change your business structure. Most licenses require periodic renewal. Professional licenses, health permits, and most local permits typically renew annually or every one to three years. You should check with the relevant issuing agency for your specific renewal requirements.
Generally, no. You must obtain all required licenses before beginning operations. Operating without proper licenses can result in fines, legal action, and difficulty obtaining licenses in the future. Some licenses allow provisional operation while applications are pending, so you should check with the specific agency.
Yes, home-based businesses need the same licenses as traditional businesses, plus they must comply with local zoning laws. You’ll need a Sales and Use Tax Registration if selling taxable goods/services, any required professional licenses, a Home Occupation Permit from the Department of Buildings, and must ensure your residential area is zoned for business use.