32 ©2018 WASHINGTON DC ECONOMIC PARTNERSHIP BUSINESS REGISTRATION & LICENSING
The withholding and submission of employer withholding
tax is optional for household employees. If you choose to
withhold, you should complete the Combined Registration
Application (FR-500), as mentioned above.
STEP 4: CERTIFICATION OF REGISTRATION
You will receive a Certificate of Registration from the Office
of Tax and Revenue once you file your FR-500.
STEP 5: CLEAN HANDS CERTIFICATE
The Clean Hands Certificate is an affidavit stating that you
do not owe more than $100 to the District government. If you
owe more than $100 to the District government, you will need
to resolve the outstanding debt before you can proceed.
A Clean Hands Certificate is required to be submitted with
any application for a license or permit, including a Basic
Business License (see “Step 7”). The form is included in the
Basic Business License application packet.
STEP 6: CERTIFICATE OF OCCUPANCY (CRA-5)
A Certificate of Occupancy (C of O) or Home Occupation
Permit (HOP) is required to show that your business is
operating in a building that meets building and zoning code
requirements for its intended use. However, you may not
need one if you are leasing space in a building that already
holds a Certificate of Occupancy for your intended business
use. For instance, a law firm can operate under the umbrella
of an office building’s C of O as long as the firm operates in a
manner that conforms to office use.
Certain businesses—mostly Basic Business License
applicants—need to obtain a separate certificate if the
property owner’s C of O does not cover their business. It’s
important to ask the owner, property manager, or agent about
the C of O when entering into a lease agreement.
To file for a C of O for your business, you must have
a commercially zoned business location. However,
if you operate your business from your house or
apartment, you instead need a Home Occupation Permit.
C of O applications are available from the Department of
Consumer and Regulatory Affairs or online at dcra.dc.gov
under the heading “Zoning.” Once you have completed
the application, you will need to submit it in person to the
Permit Service Center.
Commercial Properties will typically already have a
C of O. You should be able to get a copy of the certificate
from the building owner or management company. If
there is not a C of O, you will need to apply for one. If you
are leasing a space for your business, you will need to get
the property owner’s authorization, documented in the
Authorization Form. You may wish to visit bit.ly/CofO
to read more about the process and to obtain a C of O
checklist, application, Authorization Form, and other
supplemental forms that may be required.
Home-based businesses are subject to DC Code and
DC Municipal Regulations (DCMR) Title 11 Zoning
Regulations; if you use your residence as your primary
business location, you must file for a Home Occupation
Permit. HOPs allow for limited home occupations, with
standards, as an accessory use to the principal residential
use. See Section 203.1 of DCMR Title 11 for permitted
home occupations and limitations. You may view this
section and the District’s zoning regulations at
dcoz.dc.gov. There are limitations, however, as you are
only allowed to use the greater of either 250 square feet
or 25% of the floor area of the structure, excluding the
basement or any accessory structure, for your business
operation. Check zoning regulations regarding all homebased
businesses before applying for a HOP.
UPDATED "FAST FOOD" DESIGNATIONS
Your fast-casual establishment may no longer be restricted
by DC’s “fast food” definition or zoning restrictions.
As of September 6, 2016, zoning regulations changed for
fast food and fast-casual restaurants. With this change,
the “fast food” designation, which has separate zoning
restrictions, will be assigned to restaurants that meet at
least one of the following conditions:
• Foods that are prepared by production-line techniques
• Foods that are standardized foodstuffs shipped to a
franchised establishment from central locations
• The establishment includes trash receptacles located in the
dining area for self-bussing of tables
• Seating for customers
• Food served on disposable tableware
/dcra.dc.gov
/dcoz.dc.gov
