Why incorporate in Washington DC?

Business Information & Rankings

• The Greater Washington area is the 2nd Best Metro Area for Entrepreneurs (Entrepreneur magazine)
• DC has over 100 million sq/ft of commercial office space supporting more than 20,000 companies.
• Three Fortune 500 companies have headquarters in the District and another 60 maintain offices.
• The Greater Washington area is home to more than 90 eLearning firms.

Cost of Living Index

Crime Rate

Washington, DC is ranked the 13th most dangerous city in the U.S. (Morgan Quinto Awards, 2005)

Fees & Taxes

Corporate Income Tax
Corporations engaging in a trade or business within the District or receiving income from District sources are subject to tax at a rate of 9.5% on their taxable income. In addition, a total surtax of 5.0% is charged, for a total effective rate of 9.975%. The minimum franchise tax for corporations is $100.

Personal Income Tax (2003)
The first $10,000 is taxed at 5%
$10,001-$17,000 is $500 + 7.5% of excess over $10,000
$17,001-$30,000 is $ 500 + 7.5% of excess over $10,000
$30,000 $ 2,000 + 9.3% of excess over $30,000

Real Property Tax
The metropolitan area average burden for the real property tax is 3.7% of income at the $25,000 level; 3.5% at $50,000 and $75,000 levels; 3.3% at $100,000; and 3.1% at $150,000.

State Sales and Use Tax
Base Rate: 5.75%

Unemployment Insurance
New employers are assigned a standard tax rate equal to the average rate of contributions paid by all employers during the preceding year, or 2.7% whichever is higher.