🗿How to Start an LLC in South Dakota (2025 Step-by-Step Guide)
Learn how to start an LLC in South Dakota in 2025. Step-by-step guide on filing Articles of Organization, choosing a registered agent, costs, annual reports, and more.
🤔 Why Form an LLC in South Dakota?
Forming a South Dakota LLC offers liability protection, tax advantages, and a straightforward setup process. Whether you’re in Sioux Falls, Rapid City, or a smaller town, South Dakota provides a business-friendly environment with minimal bureaucracy.
| Benefit | Description |
|---|---|
| 💵 No State Income Tax | South Dakota doesn’t impose personal or corporate income tax. |
| 🛡️ Personal Asset Protection | LLC shields your personal assets from business liabilities. |
| 📉 Low Ongoing Costs | Only $50 annual report fee with no franchise tax. |
| 🚀 Business-Friendly Laws | Simple and efficient formation process with supportive regulations. |
| 📄 Online Filing System | Quick and easy filings via the SD Secretary of State portal. |
| 🌍 Non-Resident Friendly | South Dakota allows non-residents to form and manage LLCs remotely. |
🧭 Steps to Form an LLC in South Dakota
1. 🏷️ Choose a Name for Your South Dakota LLC
Your LLC name must:
Include “Limited Liability Company,” “LLC,” or “L.L.C.”
Be distinguishable from existing names in the South Dakota Secretary of State registry
Avoid restricted terms (e.g., “bank,” “insurance”) without proper approval
🔍 Search name availability using the South Dakota Business Information Search.
2. 📬 Designate a South Dakota Registered Agent
South Dakota requires all LLCs to appoint a registered agent with a physical street address in the state — no P.O. boxes.
The agent can be an individual resident or a business entity authorized to do business in South Dakota.
This is where legal documents and notices will be delivered.
3. 📝 File the South Dakota Articles of Organization
To officially create your LLC, file the Articles of Organization with the South Dakota Secretary of State.
Filing Fee: $150 (online) or $165 (by mail)
File Online: South Dakota Secretary of State Online Services
Processing Time: Immediate approval for online filings; 1-2 business days for mail filings plus mailing time
You can also file by mail at:
South Dakota Secretary of State
500 E Capitol Ave
Pierre, SD 57501
4. 📄 Draft an LLC Operating Agreement
While not required by state law, having a written Operating Agreement is essential to:
Define ownership roles and profit sharing
Avoid member disputes
Establish credibility and protect your limited liability status
Single-member LLCs also benefit from having this document.
we offer free templates for both member-managed and manager-managed LLCs.
5. 🆔 Get an EIN for Your South Dakota LLC
You’ll need an Employer Identification Number (EIN) if your LLC:
Has more than one member
Hires employees
Opens a business bank account
🆓 Apply directly with the IRS here — it’s free.
6. 🧾 Check Local South Dakota Business License Requirements
While South Dakota doesn’t require a general statewide business license, some cities and counties may require permits or licenses based on your industry.
Use the South Dakota Business Licensing Information to find your specific license requirements.
7. 💼 Open a Business Bank Account
Keep your LLC finances separate from personal ones:
Open a dedicated business checking account
Bring your EIN, Articles of Organization, and Operating Agreement
8. 📆 File the South Dakota LLC Annual Report
Every LLC in South Dakota must file an Annual Report with the South Dakota Secretary of State to remain in good standing.
Due Date: By the last day of your LLC’s anniversary month each year
Fee: $50 (online) or $65 (by mail)
File Online: South Dakota Annual Report Filing
Failure to file can result in a $50 penalty and administrative dissolution of your LLC.
🔍 People Also Ask
How much does it cost to start an LLC in South Dakota?
$150 online or $165 by mail.
How long does it take to form an LLC in South Dakota?
Online filings are usually processed instantly or within 1 business day.
💰 South Dakota LLC Formation Costs
| Document/Service | Cost |
|---|---|
| Articles of Organization (online) | $150 |
| Articles of Organization (mail) | $165 |
| Registered Agent (annual) | $50–$150 |
| EIN | Free |
| Operating Agreement | Free (DIY) |
| Local Licenses & Permits | Varies |
| Annual Report | $50/year |
📇 South Dakota Secretary of State Contact Information
Website: sdsos.gov
Phone: (605) 773-4845
Mailing Address:
Secretary of State
Capitol Building
500 East Capitol Avenue
Pierre, SD 57501
❓FAQs - South Dakota LLC
1.How do I start an LLC in South Dakota?
Choose a name, appoint a registered agent, file Articles of Organization, get an EIN, and follow local compliance steps.
2. Do I need to file an annual report in South Dakota?
Yes, every year by the last day of your LLC’s anniversary month. The fee is $50 online or $65 by mail.
3. Can I form a South Dakota LLC online?
Yes, through the South Dakota Secretary of State Online Services.
4.Does a South Dakota LLC need a business license?
Not statewide, but check local county or city requirements.
5.What is the EIN and why do I need it?
It’s a federal tax ID number required for hiring employees and opening business accounts.
6. Can a non-resident form a South Dakota LLC?
Yes, there’s no residency requirement for LLC owners.
7.Is South Dakota a good state to form an LLC?
Yes, with reasonable fees and straightforward compliance, SD is business-friendly.
8. How do I maintain my LLC in South Dakota?
File the annual report, keep your registered agent up-to-date, and renew licenses.
9. Can I use my home address as my registered agent address?
Yes, as long as it’s a physical street address in South Dakota.
About Us
We specialize in guiding individuals through the process of forming LLCs across all states, while also offering a range of comprehensive business services tailored to entrepreneurs.
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contact details
- support@tostartanllc.com
- +1 (646) 347-3833
- 1494 State St, Schenectady, NY 12304,
