There are important steps you need to take—and we're glad you asked.
This is one of the most overlooked areas in the rental process, and making assumptions here can lead to costly penalties. At a minimum, you must cancel your Basic Business License and Business Tax Registration. If your property is owned by a business entity, you may also need to dissolve the entity.
Let’s walk through what needs to happen:
✅ Cancel Your Basic Business License
It’s crucial to cancel your license before it expires.
If not, the District will impose a $250 penalty the day after the expiration date. If the license remains expired for 30 days, an additional $250 penalty applies—and further penalties may continue to accrue.
Why this matters:
Your business license is tied to your Social Security number, ITIN, or EIN. If you leave it in expired status, the District government can garnish your tax refund or refer your case to collections. Avoid the headache by canceling your license on time.
Canceling is quick and can be done online.
➡️ See our guide: How to Cancel My D.C. Rental Property License
✅ Close Your Business Tax Accounts
When you applied for your rental license, you were automatically registered for business tax accounts through the D.C. Office of Tax and Revenue (OTR). If you're no longer operating a rental business, these tax accounts must be closed to avoid compliance issues.
If you don’t close them, the OTR will assume you’re still in business—and may issue penalties or initiate an audit due to missing tax filings.
Here’s what to do:
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We strongly recommend consulting your tax professional to determine the best course of action.
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You can also contact the DC Office of Tax and Revenue - Business Tax Division at (202) 727-4829 for assistance.
Taking action now helps you avoid unexpected fines and tax complications down the road.
✅ Cancel Your RentJiffy Registered Agent Service (if applicable)
If you hired RentJIffy as your registered agent, you’ll also need to cancel that service too.
➡️ For full instructions, visit our guide: How Do I Cancel My Registered Agent Services with RentJiffy?
✅ If Your Property Is Owned by a Business Entity or Trust
Close Your Business Entity Registration
If your rental property was held in a business structure such as an LLC, Corporation, or Statutory Trust, and you no longer plan to operate the business, you may need to dissolve the entity.
To do this, file Articles of Dissolution with:
D.C. Department of Licensing and Consumer Protection – Corporations Division
📍 1100 4th Street SW, Washington, DC 20024
📞 (202) 671-4500
Important: Ceasing rental activity doesn’t automatically mean you can dissolve the business.
Before proceeding, consult with a legal professional to determine if dissolution is appropriate, especially if the entity has other obligations or liabilities.
Wrapping Up
Taking these steps ensures a clean break from your rental responsibilities and helps you avoid unnecessary fees, penalties, or government enforcement.