What is Unincorporated Business Franchise Tax?

An unincorporated business franchise tax is a business tax levied on businesses that are not incorporated, such as sole proprietorship, partnerships, and limited liability companies. 


As of 2021, the tax rate is 8.25%, and there is a minimum tax requirement of $250 if your gross income is $1 million or less.


An unincorporated business in D.C. with a gross income from real estate rental that is over $12,000 must file a D-30 Unincorporated Business Franchise Tax Return. Note: A D-30 form must be filed even if the business does not have a net income.


For more information on the D30, see our article Do I need to file a D30?

Resource: DC Office of Tax and Revenue. 


If you have more questions about this tax, how it affects you, or how to file a return, please consult your tax professional. For general information, you can contact the Business Tax Division of the D.C. Office of Tax and Revenue by calling 202-727-4829.


RentJiffy does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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