Starting an LLC as a solo founder in the District of Columbia is an exciting step. However, navigating the tax landscape can feel overwhelming. This guide breaks down the key tax obligations for your single-member LLC in DC for 2026, helping you stay compliant and maximize your savings. You might also find our guide on LLC registration in Alabama useful here. Streamline your formation and ongoing compliance with Lovie, your AI-powered assistant.
As a single-member LLC in DC, your default tax structure is a pass-through entity. This means your business profits are passed through to your personal income and taxed at the individual level. While you don't pay corporate income tax, you are subject to the Unincorporated Business Franchise Tax in DC. This connects to our resource on LLC registration in Alaska, which covers the details. You can also elect to be taxed as an S-Corp for potential tax advantages.
Single-member LLCs pay self-employment tax (15.3%) plus income tax on all net profits, reported on Schedule C of the owner's personal tax return.
Deduct expenses for the portion of your home used exclusively and regularly for business.
Deduct ordinary and necessary expenses, such as office supplies, software, and marketing costs. Deduct one-half of your self-employment tax from your gross income.
Pay estimated federal income tax if you expect to owe at least $1,000.
Pay estimated DC Unincorporated Business Franchise Tax if you expect to owe at least $100. Deposit payroll taxes withheld from employees' wages.
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State-specific formation guides, cost breakdowns, compliance checklists, and expert comparisons — updated for 2026.