200 likes | 372 Vues
G O V E R N M E N T O F T H E D I S T R I C T O F C O L U M B I A. Department of Consumer & Regulatory Affairs. LINDA K. ARGO, DIRECTOR. Business and Professional Licensing Administration. HAROLD B. PETTIGREW, JR., ADMINISTRATOR. Doing Business 2.0.
E N D
G O V E R N M E N T O F T H E D I S T R I C T O F C O L U M B I A Department of Consumer & Regulatory Affairs LINDA K. ARGO, DIRECTOR Business and Professional Licensing Administration HAROLD B. PETTIGREW, JR., ADMINISTRATOR Doing Business 2.0 Corporate Registration and Business Licensing Overview October 13, 2010
THE LICENSING PROCESS STEP- BY- STEP
THE LICENSING PROCESS STEP-BY-STEP • Step 1: Determine The Corporate Structure How will I register my business? • There are many options for registering a business as follows: Corporation (non-profit or for profit), Limited Labiality Company (LLC), Partnerships (Limited Partnership (LP), Limited Liability Partnership (LLP), General Partnership (GP), Corporative Association, Sole Proprietor (SP) • DCRA Corporations Division registers all the above listed entities (except Sole Proprietor) • If an entity / sole proprietor plans to use a trade name (doing business as - dba) then the trade name should be registered with DCRA’s Corporations Division • For more information please visit http://dcra.dc.gov/DC/DCRA/For+Business/Corporate+Registration
THE LICENSING PROCESS STEP-BY-STEP CORPORATIONS ACTIVITY | STATISTICS BY YEAR • New Businesses: 11,000 registered annually • Certified Documentation/Status Certificates: 17,500 issued annually • Miscellaneous/Amendments (other corporate filings): 11,000 processed annually • Reports: 32,500 processed annually • Total Transactions: 70,000 processed annually • Active Corporate Entities: 75,000
THE LICENSING PROCESS STEP-BY-STEP • Corporate Online Services: • The Corporations Division will be launching a new application that will enable customers to file online. The online services will include the following corporate filings: • Formation filings for domestic entities (i.e. articles of incorporation) • Registration filings for foreign entities (i.e. certificate of authority) • File biannual reports • Request for good standing certificate • Trade name registration • Name reservation filing • Target launch December 2010
THE LICENSING PROCESS STEP-BY-STEP • Step 2: Employer Identification Number (EIN): • Also known as the “Tax Identification Number (TIN)” • EIN is assigned by the Internal Revenue Service (IRS) • IRS uses the EIN number to identify business taxpayers • EIN numbers are required if a business is doing the following: - Hiring employees - Operating as a corporation, LLC or partnership - Filing tax returns for employment - Using a tax-deferred pension account • For more information visit www.irs.gov • To apply online, go to: https://sa2.www4.irs.gov/modiein/individual/index.jsp
THE LICENSING PROCESS STEP-BY-STEP • Step 3: Certificate of Occupancy: A Certificate of Occupancy or Home Occupation Permit is issued through DCRA’s Permit Center: • From a Building: If operating a business from any commercial property a Certificate of Occupancy (C of O) is required for all commercial properties • From a Home: If operating a business from your primary residency (home) a Home Occupation Permit (HOP) is required. Only 25% of the dwelling’s floor area, or 250 square feet, can be used for the business operation
THE LICENSING PROCESS STEP-BY-STEP Expedited Home Occupation Permit (eHOP) • Launching November 2010 Customers can apply for an Expedited Home Occupation Permit (EHOP) online. • The DC Office of Tax and Revenue will verify that the applicant is the owner of the property • Must be the principal place of residence • If the applicant is a tenant, they must apply in person and bring a DC driver’s license to verify residency • The tenant must provide written authorization from the landlord • Only 25% of the dwelling’s floor area, or 250 square feet, can be used for the business operation
THE LICENSING PROCESS STEP-BY-STEP • Step 4: DC Business Tax Identification Number: • The FR-500 is a DC Combined Business Tax Registration document that: - Provides ownership information - Identifies the location of the business - Identifies the type of business entity • The Certification of Registration is mailed to the business owner once it is reviewed and approved by the Office of Tax and Revenue • For further information visit www.otr.cfo.dc.gov
THE LICENSING PROCESS STEP-BY-STEP • Step 5: Clean Hands Certificate: The Cleans Hands form is an affidavit to verify that a potential business owner does not owe no more than $100 to the District Government • If the business owner owes more than $100 it will need to be resolved with the Office of Tax (OTR) and Revenue before a Clean Hands Certificateis approved • A business license or permit will not be issued or approved without a Clean Hands Certificate • The Basic Business License application-packet includes the Clean Hands Certificate form
THE LICENSING PROCESS STEP-BY-STEP • Step 6: Basic Business License Application: • All businesses are required to obtain a Basic Business License (BBL) • BBL’s are renewed every two years • There are 16 endorsements and 165 categories under the Basic Business License program • Certain licensing categories require additional information to include: - Bond - Insurance - Criminal History Check - Other District Agency Signatory Approval (i.e. Department of Health)
THE LICENSING PROCESS STEP-BY-STEP • BBL Online Renewals: • Certain business licenses can be renewed online. Please review your renewal bill to determine if you can renew online. The following items are required: • BBL Number: This number is printed on your renewal bill • FEIN: The Federal Employer Identification Number of your business • PIN: A Personal Identification Number that is sent to you with your renewal bill • Credit Card: Payment with Visa, MasterCard, or Discover is required for renewal • You can renew your business application online 30 days prior to the expiration of your current license. • DCRA must verify the information prior to renewing your license. • To renew online, go to: https://cpms.dcra.dc.gov/osr/
THE LICENSING PROCESS STEP-BY-STEP BUSINESS LICENSING ACTIVITY • Top 5 licensing categories: • One family rental, • home improvement contractors, • home improvement salesman, • restaurants and • general business • New Business Licenses: 9,000 processed • Renewals (including online renewals): 12,000 processed • Total Active Licenses: 45,000
SMALL BUSINESS RESOURCE CENTEROVERVIEW The Small Business Resource Center (SBRC) will provide workshops and one-on-one technical assistance to customers seeking assistance with navigating the District’s regulatory environment.
SMALL BUSINESS RESOURCE CENTERPARTNERSHIPS • Washington, DC Economic Partnership • DC Women’s Business Center • DC Small Business Development Center at the DC Chamber of Commerce Foundation • Washington Area Community Investment Fund • Internal Revenue Service (IRS) • DC Bar Pro Bono Program
SMALL BUSINESS RESOURCE CENTERSERVICES The SBRC will provide service, which will include: • One-on-One Technical Assistance Sessions: • Business Licensing • Corporate Registrations • Workshops: • Starting a home-based business • Navigating the Basic Business License (BBL) process • Establishing a corporate entity • Navigating Internal Revenue Service Requirements