a South Dakota
The state of South Dakota offers a variety of business incentives made available by the South Dakota Governor's Office of Economic Development, provided your LLC meets the specific criteria. For example, the REDI Fund is a low-interest loan available to start-up firms, businesses that are expanding or relocating in South Dakota, as well as local economic development corporations.
For individuals aspiring to initiate a business in South Dakota, establishing a South Dakota limited liability company (LLC) is typically the most efficient and straightforward approach. With streamlined guidelines and regulations, an LLC proves to be an optimal business structure for startups and medium-sized enterprises, offering them the advantages and safeguards enjoyed by larger corporations in South Dakota.
Benefits of Starting a South Dakota LLC:
- Protect your personal assets from your business liability and debts
- Easily file your taxes and discover potential advantages for tax treatment
- Create, manage, regulate, administer and stay in compliance easily
Learn more about the benefits of the LLC business structure.
This comprehensive guide offers insights into various aspects, including naming your LLC, acquiring a Registered Agent, understanding applicable fees, navigating South Dakota business taxes, and more. It also provides guidance on meeting registration requirements, completing the filing process for your South Dakota LLC, and effectively communicating with the South Dakota Secretary of State (SOS).e.
How to Form an LLC in South Dakota Yourself in 6 Steps
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How To Guide
Step 1: Complete a South Dakota LLC Search and Choose a Business Name
To start the process, you’ll need a name for your LLC that’s unique and stands out, but you’ll want to make sure that it’s not being used by any other business or formed entity in the state. If you’re having trouble coming up with a name try using Bizee’s Business Name Generator. Additionally, adherence to specific naming guidelines is imperative, and a comprehensive understanding of these rules can be found on the South Dakota Business Names page.
Once you’ve chosen a name, you’ll need to make sure it’s available in South Dakota. To find out whether another company in the state is already using your preferred business name, use our tool to do a business name search. You can also carry out a name search within the South Dakota Secretary of State's website via their business name availability search.
We Can Search the State of South Dakota Business Registry for YouUse Bizee's Business Name Search Tool
Step 2: Provide an Official Business Address for Your LLC
Whether your business is situated in an office building, a residential setting for home-based operations, or any other physical location, every South Dakota LLC must have an assigned street address. While this address can be located outside of South Dakota, it's crucial to note that a P.O. Box is not an acceptable option by the state.
Step 3: Assign a Registered Agent
A Registered Agent is an individual who accepts official legal and tax communications and holds the responsibility of submitting reports to the South Dakota Secretary of State (SOS). Every South Dakota LLC is obligated to designate a Registered Agent.
This position can be filled by you, another manager in your business or a dedicated Registered Agent service. If your South Dakota Registered Agent is a person, they must have a physical street address in South Dakota and must be present during business hours to receive important documents on behalf of your business. In South Dakota, you appoint your Registered Agent when you file your Articles of Organization and formally create your business.
All of Bizee’s packages include Registered Agent service. It’s free for the first year and just $119 per year after that. We also provide you with access to our dashboard where you can easily view any document we've received on your behalf.
Step 4: File Your Articles of Organization with the South Dakota Secretary of State (SOS)
Once you've gathered all the information for your South Dakota LLC, you’ll need to file your Articles of Organization with the South Dakota Secretary of State.
The articles must include:
- Name of your LLC
- Name and contact information of the Registered Agent
- Name and address of each organizer
- Principal address of the business
- Whether the LLC is will be member-managed or manager-managed
- Name(s) and signature(s) of authorized person(s)
- Name of the organizer
Your Articles of Organization can be filed online, by mail, or in person with the South Dakota Secretary of State. The filing fee for a South Dakota LLC with an additional cost of $15 if you choose to file via a paper form.
File by Mail or In Person
Secretary of State Office
500 E Capitol Ave
Pierre, SD 57501
Filing your Articles of Organization is a one-time requirement, yet it's essential for all South Dakota LLCs to submit an annual report annually to uphold compliance with the Secretary of State. The fee for filing this report, as established by the SD Secretary of State, amounts to $50, with an additional $15 charge applicable if you choose the paper filing method.
Let Bizee Handle All the Paperwork for You for $0 + the South Dakota State FeeForm Your LLC Now for Free
What are the Fees and Requirements to Form a Business in South Dakota?
State Filling Time
Expedited Filing Time
1 Business Day
Before 1st day of 2nd month following anniversary month.
Step 5: Get an Employer Identification Number (EIN) from the Internal Revenue Service
An Employer Identification Number (EIN) is essential for IRS identification of your business. This number is used during tax filing, payroll submissions, and employee payments. Additionally, it's required to establish a business bank account. You can acquire an EIN directly from the IRS, or Bizee can assist in obtaining one as part of the South Dakota LLC formation procedure.
Step 6: Create an Operating Agreement
Consider an operating agreement as a valuable "manual" that elucidates your business's operational structure. Within an LLC Operating Agreement, crucial elements are mapped out, including the methodology for decision-making, the distribution of member ownership, and protocols for member departures from the company.
Although some states require businesses to have this document in place, you're not legally required to have an LLC Operating Agreement in place to conduct business in South Dakota. We do recommend having one for your business nonetheless.
Receive a Personalized Operating Agreement When You Select Bizee’s Gold or Platinum PackageForm Your LLC Now
Other South Dakota LLC Types
Professional Limited Liability Companies (PLLCs) are different from professional corporations in that they typically have licensing requirements applicable to certain fields, such as law and medicine. In order to form a PLLC, you may need a state license to practice.
Learn more about PLLC vs. LLC and which is right for your business.
Should your business currently operate in a different state and you're planning expansion into South Dakota, or the reverse scenario, it will be necessary to establish a Foreign LLC.
Learn more about South Dakota Foreign LLC registration.
Helpful Resources from the State of South Dakota
More Information in This Guide
You’ll find plenty more insight and guidance on the other pages of this guide, including:
How to Name Your South Dakota LLC
Discover the process of exploring the South Dakota business registry to identify the ideal name for your venture. This encompasses insights into naming regulations, fictitious names, securing a reserved South Dakota LLC name, and additional pertinent details.
South Dakota Registered Agents
How to appoint, change and search for Registered Agents. Also includes the rules they’re required to follow.
South Dakota LLC Fees and Requirements
Learn to comprehend the array of fees that necessitate payment and the essential state and federal obligations that must be fulfilled. This encompasses insights into acquiring Employer Identification Numbers (EINs), state and federal business licenses, annual reporting obligations, and other pertinent considerations.
South Dakota Business Tax Rules
Learn to grasp the diverse taxes you're required to remit to both state and federal authorities. This encompasses insights into state-level taxes like sales and income taxes, as well as federal taxes including income tax and self-employment tax.