South Dakota LLC Cost

We’ve compiled the most common fees so you know exactly what to expect when starting your South Dakota LLC.

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Start Your LLC in South Dakota

FAQs on how to determine South Dakota LLC costs

  • You must file your LLC’s Articles of Organization with the South Dakota Secretary of State to officially start your South Dakota LLC. You can also reserve your prospective LLC name in advance so that no one else takes it while compiling the information you need for your Articles of Organization. Reserving your name requires you to file an Application for Reservation of Name with the Secretary of State and include the $25 filing fee.

    We can help you start your South Dakota LLC with our South Dakota LLC Formation Service. For just $0 plus state fees, you can delegate the task of figuring out the LLC filing process to us.

  • The average cost to start a business in South Dakota varies. However, you’ll likely encounter the following costs when you start an LLC in South Dakota.

    South Dakota LLC Filing Fee

    To file your LLC Articles of Organization in South Dakota online, you’ll pay $150. If you file by mail, you’ll pay $165.

    LLC Name Reservation Fee

    The fee for filing your LLC’s Application for Reservation of Name is $25. This reserves your proposed LLC name for 120 days. Your LLC’s name must be “distinguishable on the record” from other business names in South Dakota. South Dakota has several other requirements for naming an LLC, so check with the Secretary of State to be sure that your name fits the bill.

    Business Income Taxes

    South Dakota doesn’t have corporate taxes or income taxes, so you won’t have to pay regardless of your LLC’s federal tax election.

    Registered Agent

    Free: Every South Dakota LLC must have a registered agent. You can act as your LLC’s registered agent. You must be over 18 years old, have a physical address in South Dakota, and be available to accept legal documents during regular business hours. Because of these requirements, many businesses hire a registered agent. They consider it a worthwhile cost to start a business in South Dakota.

    We can help match you with a professional South Dakota Registered Agent with our South Dakota Registered Agent service. This way, you don’t have to worry about your constant availability.

  • What does it cost to start a business in South Dakota? Starting an LLC in South Dakota often costs more than just the LLC filing fee. Here are some additional fees you may have to pay when starting your South Dakota LLC.

    Certificate of Good Standing

    A Certificate of Good Standing is a document from the Secretary of State of South Dakota that verifies that your LLC has complied with all of the registration rules in the state. Often, banks or other third parties will request this document for you to request financial assistance or conduct business. A Certificate of Good Standing costs $20. You can request a Certificate of Good Standing only online.

    Fictitious Business Name in South Dakota

    Perhaps your LLC would like to use another name besides its legal name. In this case, you will need to register for a DBA Fictitious Business Name in South Dakota. This name is also referred to as a DBA (“doing business as”) name or trade name. The cost of registering a Fictitious Business Name for your LLC name is $10.

    Foreign LLC Certificate of Authority

    If you formed an LLC outside (meaning, in another state) of South Dakota but would like to operate in South Dakota, you’ll need to apply for a Certificate of Authority. The cost to apply for a Certificate of Authority in South Dakota is $765.

    Business Sales Tax License

    Every business in South Dakota must have a sales tax license. Although a Retail Sales Tax License is free, your LLC will be responsible for paying the 4% tax on goods and services that it sells. Check with the South Dakota Department of Revenue to ensure that you’re correctly accounting for your sales taxes.

    Other Business Licenses

    Other than the Sales Tax License above, there is no other general business license in South Dakota. However, depending on the services you will be providing, you may be required to obtain a business license from a county or local government. Contact your local government to determine if you need a license or permit.

    Perhaps you can’t spend valuable time calling countless government agencies to see if your South Dakota LLC requires a license. Fortunately, we can help. We offer a Business License Report service that will help you quickly and easily discover whether your LLC will need a business license.

    For just $0 plus state fees, we can form your South Dakota LLC for you in just minutes. No LegalZoom promo code required: Pay just $0 plus filing fees for fast LLC formation in South

  • Yes. If you do not pay your South Dakota LLC fees, you can face an additional penalty or lose your LLC status entirely. Plus, if you do not pay your sales taxes promptly, you can also be assessed a fee. It is important to pay all of your LLC fees on time so you don’t jeopardize your business.

  • Yes. If you do not pay your South Dakota LLC fees, you can face an additional penalty or lose your LLC status entirely. Plus, if you do not pay your sales taxes promptly, you can also be assessed a fee. It is important to pay all of your LLC fees on time so you don’t jeopardize your business.

  • Yes. If you do not pay your South Dakota LLC fees, you can face an additional penalty or lose your LLC status entirely. Plus, if you do not pay your sales taxes promptly, you can also be assessed a fee. It is important to pay all of your LLC fees on time so you don’t jeopardize your business.

  • The largest fee you will pay when you start your South Dakota LLC is the filing fee for your Articles of Organization. If you file online, it’s $150, but if you file by mail, it’s $165. If you register a foreign LLC in South Dakota, it will run you $765.

  • You can use various methods to pay your South Dakota LLC filing fee. If you file through the South Dakota online filing system, you can use a credit card or debit card. If, however, you file by mail, you can pay by check.

How do I form my LLC in South Dakota?

Starting an LLC in South Dakota involves several steps:

1. Choose an LLC Name

The first step to forming your South Dakota LLC is to select an appropriate name for your LLC. You can pick a name that you think best fits your business. However, your LLC name must abide by South Dakota’s LLC naming laws to be approved by the South Dakota Secretary of State. We can help you see if your prospective name is available with our Business Name Checker.

Your LLC name must be “distinguishable on the record” from other business names. Your proposed LLC name must not be too similar to another South Dakota business name.

Additionally, your LLC must have something in the name indicating that it is a limited liability company. Some variations you can use include:

  • LLC
  • L.L.C.
  • Limited Liability Company
  • Ltd. Liability Company
  • LC

You should check with the Secretary of State to see all of the variations that South Dakota finds acceptable for your LLC.

Once you’ve selected your name, you can reserve it so that no other business takes it before filing your LLC formation documents. You can do so by filing an Application for Name Reservation with the Secretary of State with the filing fee.

2. Select a Registered Agent

Every LLC in South Dakota must name a registered agent in their LLC Articles of Organization. A registered agent accepts legal documents on behalf of your company, including lawsuits and subpoenas. Although you can act as your South Dakota LLC’s registered agent, sometimes it isn’t in your company’s best interest. For example, the last thing you’d want to deal with is accepting the service of a lawsuit in front of customers. 

If you’d like to hire a South Dakota registered agent, we can help. We can help match you with a South Dakota registered agent so that you don’t have to worry about embarrassment.

3. File Your South Dakota LLC’s Articles of Organization

Next, you’ll file your LLC’s Articles of Organization with the South Dakota Secretary of State.  Filing the Articles of Organization is what legally creates your LLC. Once the South Dakota Secretary of State accepts your Articles of Organization, your business officially becomes an LLC, and you will enjoy the protections and benefits that come with LLC status.  Be sure to inspect South Dakota’s LLC Articles of Organization form to have all the information required to file.

You can file your South Dakota Articles of Organization online or by mail. If you file by mail, you can send your Articles of Organization with a check for the filing fee to:

South Dakota Secretary of State Office

500 E Capitol Ave

Pierre, SD 57501

(605)773-4845

4. Draft an Operating Agreement

An operating agreement sets forth the policies and procedures of your LLC. Although it isn’t required under South Dakota law, many LLCs find an operating agreement a useful tool when the inevitable tough decision arises.

Some issues covered by an operating agreement include

  • The voting process for LLC members
  • Titles and duties of the officers
  • The LLC’s tax elections 
  • How profits and losses will be distributed amongst the members
  • How to add or remove LLC members

If you do not customize your LLC’s operating agreement, your LLC will be subject to the default rules in South Dakota law. 

Customizing your LLC’s operating agreement may seem difficult. Luckily, we offer an Operating Agreement Template to help you draft the operating agreement that best fits your business’ needs. 

5. Obtain an EIN

An Employer Identification Number, or EIN, is a number that you get from the Internal Revenue Service (IRS) for tax purposes. Like your social security number, your EIN is unique to your business. You must apply for an EIN from the IRS.

You often need an EIN for things other than filing your taxes. For example, many banks require you to provide an EIN if you want to open a business bank account.

We can help you quickly apply for and obtain an EIN for your new South Dakota LLC. We offer an EIN Service to take the burden of this application process off of your shoulders.  

Stay Compliant

South Dakota has many ongoing obligations by which an LLC must abide. For example, an LLC must file an Annual Report or risk losing its LLC status. Plus, you must regularly pay your business’s sales taxes to the South Dakota Department of Revenue.

Additionally, your LLC may go through changes that require filing amendments with the Secretary of State. If you wish to change your LLC’s name or appoint a new registered agent, you’ll file Amended Articles of Organization with the Secretary of State.

Lucky for you, we offer a Worry-Free Compliance service to handle your ongoing compliance issues for your South Dakota LLC. Plus, this service includes two amendments each year so that your LLC remains compliant as it changes. 

We Can Help

Setting up an LLC in South Dakota may seem overwhelming. South Dakota has many laws and regulations that apply to LLCs that can be difficult to navigate. That’s why we’re here to help. With our South Dakota LLC Formation service and Worry-Free Compliance service, you can form your South Dakota LLC quickly and be sure that it remains compliant throughout the years.  

Disclaimer: The content on this page is for information purposes only, and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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