State guide · District of Columbia
Starting a Medical Practice in District of Columbia
What physicians need to know about District of Columbia's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Corporation or LLC
LLC permitted
Yes
CPOM enforcement
Moderate
Top income tax
10.75%
Min. franchise tax
Verify — DC franchise tax minimum $250
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
District of Columbia physicians may form a Professional Corporation under D.C. Code §29-501 or an LLC under §29-801. DC's LLC statute permits professional services.
Filing is with the DC Department of Licensing and Consumer Protection (DLCP), Corporations Division.
- •Form a Professional Corporation or LLC
- •Owners practicing medicine must be licensed DC physicians
- •File Articles of Incorporation or Articles of Organization with DLCP
- •File Biennial Report with DLCP
- •Obtain DC Basic Business License
Corporate Practice of Medicine
DC recognizes a moderate Corporate Practice of Medicine doctrine. Fee-splitting is prohibited.
Tax Considerations
DC has a graduated personal income tax with a top bracket of 10.75%. DC Franchise Tax (Unincorporated Business Franchise Tax for pass-throughs) applies — minimum $250.
- •Top personal income tax: 10.75%
- •DC Unincorporated Business Franchise Tax: 8.25% on net income, $250 minimum
- •DC Corporation Franchise Tax for C-corps: 8.25%, $250 minimum
- •6% sales tax
Worth knowing
DC imposes its franchise tax even on pass-through entities (Unincorporated Business Franchise Tax), unlike most states. This is a frequent surprise for practices new to DC.
DC Health — Health Professional Licensing Administration
DC does not require entity registration with the Board of Medicine for general practices. Individual physicians are licensed by DC Health.
- •No general entity registration required
- •All practicing physicians must hold an active DC medical license
Employment Law Considerations
DC has expansive employee protections. DC Accrued Sick and Safe Leave Act mandates paid sick leave. DC Paid Family Leave is funded by employer payroll contributions. DC Universal Paid Leave provides robust benefits.
- •DC Accrued Sick and Safe Leave Act: paid sick leave for all employers
- •DC Universal Paid Leave: paid family, medical, and parental leave (employer-funded)
- •DC Ban on Non-Compete Agreements Amendment Act: most non-competes prohibited (with high-earner exceptions)
- •DC minimum wage: $17.50/hour (Verify current — among highest in country)
- •DC Wage Theft Prevention Act: significant penalties
Heads up
DC bans most non-compete agreements under the Non-Compete Clarification Amendment Act of 2022, with limited exceptions for highly compensated medical specialists earning above a threshold. Verify current law before requiring any non-compete.
Official resources
Bookmark these official agency portals for District of Columbia entity formation, tax registration, and medical board information.
Looking for District of Columbia licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for District of Columbia.
View District of Columbia licensing guide →Get the complete practice startup guide
Everything you need to launch an independent practice — free download