How to Form an LLC in South Dakota in 7 Steps

The cost of having an LLC depends on the type of business and any taxes, fees, or other costs that apply. A list of fees for LLCs in South Dakota can be found on the Secretary of State's website.

The South Dakota Secretary of State charges $150 to file an LLC online and a $15 surcharge for a total of $165 to file by mail.

To maintain a South Dakota LLC, every year you must pay the $50 annual report filing fee. You may also be required to pay renewal fees for certain business licenses and permits.

You can choose between different types of LLCs in South Dakota to form the business structure that works best for your needs.

• Single-member LLC: This is the most popular filing type. It is similar to a sole proprietorship in that a single owner is responsible for company transactions, taxes, and debts. It may also have significantly less paperwork than other LLC types.
• Multi-member LLC: This type of LLC is for two or more members. It combines the flexibility of a partnership with the limited liability of a corporation. An operating agreement is important for multi-member LLCs since it outlines agreed-upon ownership, clear expectations, and governing roles and responsibilities of the members.
• Professional LLC: If you're a licensed professional, such as a doctor, lawyer, architect, or chiropractor, for example, you may opt for a Professional LLC (PLLC). A PLLC may provide tax advantages for professionals whose occupation requires a license. Forming a PLLC will not protect owners from malpractice claims, and you may still be liable for the actions of the employees you supervise.

A certificate of formation is like a charter document for the initial formation of your LLC. In South Dakota, it's called "articles of organization." You may need your articles to open a business bank account and apply for business licenses or permits. You should hold on to the initial articles of organization filed when forming your LLC. You can request a certified copy from the Secretary of State. The fee is $15 and $2 per page.

A certificate of good standing verifies your LLC is legally registered in South Dakota and compliant with the state's laws and requirements for businesses. This certificate is usually required to register as a foreign LLC in a different state or jurisdiction and to obtain financing for your business. You can request your LLC's certificate of good standing/existence from the Secretary of State. The fee is $20.

The requirements to form an LLC in South Dakota include:

• Choosing a valid name for your LLC
• Getting a registered agent with a physical address within South Dakota
• Filing complete articles of organization with the Secretary of State

LLCs are often used by business owners who want to protect their personal assets. The benefits of an LLC in South Dakota include personal liability protection from business creditors, business protection from personal creditors, simplified transfers, better flexibility, and numerous tax advantages.

To maintain your LLC in South Dakota you must file an annual report before the first day of the second month of your LLC's anniversary and pay the $50 filing fee.

No. Articles of organization are what you're required to file with the state to create your LLC. If necessary, you can get a certified copy of your articles of organization from the Secretary of State. An operating agreement is an optional document for internal use by the members of an LLC. You are not required to file an operating agreement with the state.

A trade name or DBA (doing business as) is a name other than the legal business name stated on your articles of organization. You must register any alternate names you're using to do business in South Dakota by submitting an application for business name registration to the Secretary of State. Names used as DBAs must have at least one owner. The filing fee is $10.

Yes. Your LLC will likely be required to obtain licenses or permits from the municipal or county government where the business is located. Contact the local authority in your jurisdiction for information.

Yes. Anyone can file online to form an LLC that is not currently registered with the Secretary of State. Apply using the Secretary of State's online business registration. A business formation service company can also apply for you.

The Secretary of State's office is open Monday through Friday (excluding holidays). Business day hours are 8:00 a.m. to 5:00 p.m. The address is:

Secretary of State Office
500 E Capitol Avenue
Pierre, South Dakota 57501

Yes. You can use a registered agent service to keep your LLC compliant, avoid penalties, protect your privacy, receive service of process, and many other tasks.

A domestic LLC in South Dakota is a business that is initially formed in the state of South Dakota.

To register your South Dakota LLC in another state, you will likely apply as a foreign LLC there and pay a fee. You will also provide your LLC's certificate of good standing/existence or otherwise prove your LLC's compliance in its home state of South Dakota. Check with the Secretary of State or government office that oversees business services to confirm the process for registering as a foreign LLC in that state or jurisdiction.

If your LLC was formed in another state, it's considered a foreign LLC and needs to register in South Dakota to do business. You'll need to apply for a certificate of authority with the Secretary of State. The online filing fee is $750 or $765 to file by mail.

To dissolve an LLC in South Dakota, submit articles of termination to the Secretary of State. The cancellation must be signed by a member if the LLC is member-managed and a manager if it is manager-managed. The filing fee is $10.

No. An anonymous LLC is one in which the owners or members are not required to provide their identities on formation documents. Only Delaware, New Mexico, Nevada, and Wyoming permit anonymous LLCs. However, using a registered agent service can help with privacy concerns.