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Advantages of Incorporating a Business in District of Columbia

Date: 04/25/2019 | Category: | Author: Jakub Vele

Advantages of Incorporating a Business in District of Columbia

If you are planning to establish a startup company District of Columbia then you can choose from different types of business entities including Limited Liability Companies, C and S Corporations, Nonprofit Corporations, Professional Corporations, General Partnerships, Limited Partnerships, Benefit Corporations, Statutory Trusts, and General or Limited Cooperative Associations. It is home to one of the strongest economies in the nation with over $3.36 billion in capital investment forecasted over the years. It is a thriving marketplace for invention and innovation and is the favored headquarters for giants like Lockheed Martin, General Dynamics, The Advisory Board, Blackboard, CoStar, Hilton Worldwide, Fannie Mae, and the World Bank.

Salient Advantages leading to Business Growth

What makes District of Columbia a great state of small businesses and start-ups? The most important reason is that DC is the capital and supports a positive business climate. There are plenty of reasons to register a new company in District of Columbia and there are several drivers or catalyst that will aid in the overall growth of a business entity. It is also important that you identify the type of business that you want to establish as each entity type will have its own set of advantages and disadvantages. Let’s take a look at some of the advantages of these two business entities:

Advantage#1: The benefits of Incorporation or LLC formation

C or S Corporation

Tax Credit and Exemption Programs

If you register a new company in District of Columbia then you will be able to benefit from the variety of tax credit and exemption programs and this includes:

  • Stormwater Retention Credits (SRCs): The program has been implemented by the Department of Energy & Environment (DOEE). As a part of the program, you can generate as well as sell Stormwater Retention Credits (SRCs) and earn revenue for those projects that help in reducing harmful stormwater runoff caused by installation of green infrastructure (GI). More Information
  • Alternative Fuel Infrastructure Credit: If you register a new business in District of Columbia, you will be able to apply for a maximum credit of 50% of the allowable costs related to purchase and installation of alternative fuel storage stations. You derive credit of up to $10,000 on infrastructure and a maximum of $19,000 per vehicle.
  • Work Opportunity Tax Credit (WOTC): This is a Federal program and its objective is to help businesses in reducing their federal tax liability especially for private-for-profit entities. Application

Independent life

When you register a new business in District of Columbia as an S Corporation, it will enjoy an independent life. This means that the incapacity or death of a stockholder will not have a negative impact on the business operations.

Limited Liability Company

Grants, Loans & Reimbursement

A startup company District of Columbia or even a small business will require financial support in the starting phase. The good news is that there are several loan, reimbursement, and grants program that an LLC can benefit from:

  • Anacostia Economic Development Corporation (AEDC) Program: This is a community development program and it contains the “Façade Improvement Program” that helps in facilitating a Storefront Facade Improvement Project in low or moderate income commercial or retail areas in Wards 7 & 8 of the DC area. This program is primarily for small businesses and you can get a grant assistance of almost 75% of the project cost. More Information
  • The Community Development Financial Institutions (CDFI) Fund: This is an innovative federal agency within the Treasury Department and has in the recent past awarded $2.3 billion on a competitive basis to small and emerging CDFIs and financial institutions. It’s primary objective is to promote economic development through offering a variety of financial products. More Information
  • On-the-Job (OJT) Training Program: A startup company District of Columbia can participate in this program and you can benefit from a reimbursement of 50 to 75% of eligible trainee’s wages for a maximum of 1040 hours. The program has been implemented by Department of Employment Services (DOES) and is aimed at small to mid-size companies as well as large companies with over 100 employees. More Information

Flexible Profit Distribution

A startup company District of Columbia LLC has the benefit of being able to select different ways of distribution of profits unlike a partnership where the distribution is 50-50.

Advantage#2: District of Columbia Business Incentives

Once you register a new company in District of Columbia, there are several business incentives and programs that your business entity can benefit from. Let’s take a look at some of the most popular programs:

DC Main Streets Program

This is a highly comprehensive program with an objective of promoting the revitalization of traditional business districts in the DC area. In order to participate in the program, you have to first register a new business in District of Columbia. Some of the accredited DC Main Streets programs include:

  • Tenleytown Main Street
  • Barracks Row Main Street (DSLBD-CBO)
  • Eastern Market Main Street
  • North Capitol Main Street
  • Georgetown Main Street
  • Deanwood Heights Main Streets (DSLBD-CBO)

As a part of the program, your business entity will require Free Small Business Technical Assistance. This assistance includes information regarding marketing and social media, questions on renovations, tenant recruitment, information on permits, and other services for business entities. Some of the programs within this program like ARCH Development Corporation (DSLBD-CBO) provide a maximum of 80% of the cost for eligible exterior improvements. More Information

Qualified High Tech Companies (QHTC) Program

This is a type of DC Tech incentive program where your startup company District of Columbia can claim a really attractive incentive package in the country. The benefits or incentives include reduced corporate franchise tax rate, lowered costs of hiring & training, reduced capital gains tax rates, and lower cost of relocating workers. You can enjoy the following:

  • 0% corporate franchise tax for first 5 years followed by a rate is 6% only
  • New hire wage tax credit of up to $15,000 annually
  • Tax exemption for a period of 10-year from the date of acquisition of personal property being used for operating your business
  • Relocation tax credit of up to $7,500
  • A 5-year freeze period on real property taxes

There are several other benefits of this program as well! Application Docket

Are there any Disadvantages of Incorporating in District of Columbia?

What disadvantages could possibly be there for a start-up company District of Columbia? In reality there is none except a few that are common to different types of businesses like processing of incorporation can be time consuming and corporations would require more paperwork while LLC formation has the disadvantage of limited life. These are small disadvantages as compared to the many incentives DC has to offer.

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Why Washington DC?

Date: 07/06/2015 | Category: | Author: Jakub Vele

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

For Washington, DC (2005):Index Score
Composite:137.8
Housing:201.2
Utilities:106.1
Misc. Goods & Services:111.3

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.

Florida

Date: 06/22/2015 | Category: | Author: Jakub Vele

FLORIDA CORPORATION total only $167.75

Including Florida State Initial Filing fee $78.75 and $89.00 fee for checking name availability,preparing Florida state-approved Articles of incorporation, filing Articles with state, sending Articles to you.

See what’s included

Once your company is set up, you will need:

  1. Tax ID (EIN) – free over the Internet or phone.
  2. Yearly Requirements and Fees for Florida companies – The first annual report must be delivered to the Department of State between January 1 and May 1 of the year following the calendar year in which a domestic corporation was incorporated or a foreign corporation was authorized to transact business. Subsequent annual reports must be delivered to the Department of State between January 1 and May 1 of the subsequent calendar years. The fee is $150.00 for corporations and $138.75 for LLCs.
  3. Company Minutes & Stock Certificates – are included in incorporation. You will have access to documents generated on your client account.

Florida Corporation ORDER ONLINE

Date: 07/06/2015 | Category: | Author: Jakub Vele

Florida Corporation

 ORDER ONLINE: Use this online order form and pay by credit card.

 ORDER BY FAX: You can print and fax us this order form.

Frequently Asked Questions about Florida Corporations.

Florida LLC ORDER ONLINE

Date: | Category: | Author: Jakub Vele

Florida LLC (Limited Liability Company)

ORDER ONLINE: Use this online order form and pay by credit card.

 ORDER BY FAX: You can print and fax us this order form.

Frequently Asked Questions about Florida Corporations.

Florida Registered Agent

Date: | Category: | Author: Jakub Vele

Florida Registered Agent / Resident Agent

Pricing $89.00 per year, special for pre-pay $40 per year

Don’t get fooled by companies claiming the lowest price and increasing it later. Our pricing is very simple. We charge $89 per year. We also have few specials. Whenever you decide to pre-pay additional years you get them for $40/year.

New Company

Starting business
(new corporation, LLC, etc.)

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Change of Agent

Changing existing
agent to us

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Renewals

Existing clients
for DC resident agent

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Why you need a Registered Agent?

Florida State laws require business entities to maintain a Resident Agent in the state that you form your business. The agent’s name and office address are included in the Articles of Incorporation or Articles of Organization to give public notice of where to send important documents to your business entity.

If you need a Registered agent in State other than Florida click here.
We offer Registered Agent service in all 50 States.

State Fee for changing Florida Registered Agent

For Corps: Change in Registered Agent – $35.00; For LLC: Change in Registered Agent $25.00, Resignation (active): $85.00; and Resignation ( dissolved): $25.00. If you would like us to complete a Registered Agent Change for you will pay $10.00 + the appropriate State filing fee. Please use the Registered Agent Change option below to order.

Registered Agent Requirements

The Florida registered agent may be: (1) an individual who resides in this state whose business office is identical with such registered office or (2) a foreign or domestic entity authorized to transact business in this state, having a business office identical to such a registered office.