How to Start an LLC in South Dakota

Last updated on 05 Apr 2025

How to Form an LLC in South Dakota | Complete Guide

A Step-by-Step Guide

How to Form an LLC in South Dakota

Forming an LLC in South Dakota is an excellent method of starting your business while safeguarding your personal assets. Forming an LLC is relatively easy, but there are crucial steps you need to take in order to do it right. This full guide will help you through the process of forming your LLC in South Dakota.

What is an LLC?

Limited Liability Protection

An LLC (Limited Liability Company) is a type of business entity that gives personal liability protection to its owners (known as members). That is, your home or vehicle assets are usually shielded from any debt of the business or business law suits.

Tax Advantages

LLCs also get pass-through taxation, meaning profits get taxed only once on the personal tax return of the members.

Management Flexibility

South Dakota LLCs provide flexibility in management structure, allowing you to choose between member-managed or manager-managed operations to suit your business needs.

Formation Process

Select a Distinct Name for Your LLC

Selecting the proper name for your LLC is an important step. Your LLC's name should be distinct and cannot be claimed by any other business registered in South Dakota. To verify name availability, you can search the online database of the South Dakota Secretary of State.

Required Words: Your LLC name should contain the terms "Limited Liability Company" or the acronyms "LLC," "L.L.C.," "Ltd.," or "Co."
Prohibited Words: Steer clear of using the words "Agency," "Board," "Commission," "Department," or "Municipal," which are commonly used for government organizations.
Name Restrictions: Your LLC name should not be mistaken for government agencies or suggest a government connection, such as utilizing terminology like "State Department" or "FBI."
Domain Name: It's also a good idea to verify a website domain name similar to your LLC name because reserving it ahead of time will help keep others from taking it.

Name a Registered Agent in South Dakota

In South Dakota, all LLCs are required to have a registered agent. The registered agent will receive official documents, including legal notices, tax letters, and other state communications for your LLC.

Agent Options

Your registered agent may be you, a member of your LLC, or a professional service. If you hire a registered agent service, ensure that they are available during regular business hours and have a physical address in South Dakota.

Professional Services

Following are two strongly recommended registered agent services:

Best South Dakota Registered Agent Services

ZenBusiness

ZenBusiness is an easy and trustworthy service that features fast setup. They provide a registered agent service for $199, and their site features tools to assist you in organizing all forms and documents pertaining to your LLC.

Features compliance services that keep your LLC in good standing
Has clear, simple-to-use document management
5-star reviews on Trustpilot with more than 10,000 reviews

Best for: LLC Formation & Registered Agent Services

Price: $199 per year

Northwest Registered Agent

Northwest Registered Agent has been in business for more than 20 years. Their registered agent service is $125 annually, and they offer secure access to your documents via an easy-to-use online portal.

A+ rating with the Better Business Bureau
High customer service and data security level
Offered in all 50 states for multi-state companies

Best for: Experienced and Secure Registered Agent Services

Price: $125 per year

File Your Articles of Organization

After you have your registered agent and name for your LLC, it's time to file the Articles of Organization with the South Dakota Secretary of State. You can do this online or by mail.

Filing Fee

The Articles of Organization filing fee is $150 for online filing and $165 for paper filings.

Processing Times

Online submissions are normally processed immediately, paper filings can take 3-5 business days. Expedited filings can be done for an extra $50 fee.

Filing Options

Online: Filing online is the quickest and most convenient option.
Mail: You can send your documents by mail to the South Dakota Secretary of State.
In-Person: You can file your documents in person at the Secretary of State's office.

By Mail Address:

Secretary of State
Capitol Building
500 East Capitol Avenue
Pierre, SD 57501-5070

In-Person Location:

215 E. Prospect Ave.
Pierre, SD 57501

Note: Paper filings have an additional $15 processing fee.

What to Do After Your LLC is Registered

Once your LLC has been successfully registered, follow these few key steps:

Keep Personal and Business Finances Separate

Maintain separate personal and business accounts. Open a specific business bank account to safeguard your personal assets and keep proper financial records.

Employ an Accountant

A professional accountant can assist you in handling taxes, preventing mistakes, and ensuring that you adhere to all tax regulations, so you do not incur penalties.

Obtain an EIN

You will require an Employer Identification Number (EIN) if your LLC will have employees or if you intend to have a business bank account. The IRS issues EINs at no cost.

Obtain Business Insurance

If you're operating a small or big business, it is important to have insurance. It will protect your business against potential lawsuits, destruction of property, and other hazards. If you have employees, workers' compensation insurance is law in South Dakota.

FAQs

How much does it cost to form an LLC in South Dakota?

The Articles of Organization filing fee is $150 for online filing and $165 for paper filings.

Do I need a DBA for my South Dakota LLC?

Most LLCs in South Dakota don't require a "Doing Business As" (DBA) name. If you wish to conduct business under a different name than that which is on file with the state, you will need to obtain a DBA.

How long does it take to file the Articles of Organization?

Online submissions are normally processed immediately, paper filings can take 3-5 business days. Expedited filings can be done for an extra $50 fee.

Can I start an LLC in South Dakota if I am not a resident?

Yes, you can start an LLC in South Dakota if you are not a resident. You will need to have a registered agent who has a physical address in the state.

Do I require an operating agreement for my South Dakota LLC?

While not legally required, it is extremely advisable to have an operating agreement. It will serve to describe the organization and operating practices of your LLC and provide clarity between members.

Can I modify my LLC name once registered?

Yes, if you wish to modify your LLC name following registration, you will need to submit an amendment to the South Dakota Secretary of State and pay the relevant fee.

What is my LLC's annual maintenance requirement in South Dakota?

South Dakota does not charge fees or annual reports for LLCs, so it is one of the simpler states to have an LLC in. You must, however, keep your LLC good standing by having a registered agent and any tax requirements fulfilled.

Ready to Start Your South Dakota LLC?

Creating an LLC in South Dakota is an excellent option for those who want to have personal liability protection and the ability to conduct business in any number of ways. By following these guidelines and being mindful of state laws, you can create your LLC easily and effectively.

Get Started Today