How to Start an LLC in South Dakota

Your South Dakota LLC is formed once the Secretary of State processes your Articles of Organization. But before you’re ready to file formation documents, you’ll need to choose a business name and a registered agent. And after you file, you’ll need to follow a few more steps to make sure your business stays in good standing and is fully functional.

Create a South Dakota LLC in 5 Steps:

  1. Name Your South Dakota LLC
  2. Choose a Registered Agent
  3. File Articles of Organization
  4. Set Up Business Operations
  5. File BOI Report

Step 1: Name Your South Dakota LLC

You need to include your business name in your formation documents, so selecting one is the first step when creating your South Dakota LLC. The name needs to fit your business, but it also needs to comply with South Dakota’s LLC naming requirements. SD § 47-34A-105 states that an LLC’s name must:

  • Be distinguishable from other business names registered in the state
  • Contain an identifier like “LLC” or “Limited Liability Company”

Is my South Dakota LLC name available as a domain name?

After confirming your chosen business name is unique in the state, it’s a good idea to check its availability as a domain name and across online platforms.

When you hire us to register your LLC in South Dakota, we include a year of free domain name registration. By incorporating your business name in your business website’s URL, you’ll begin building a consistent brand image. This establishes trust with your customers and makes it easier for them to find you.

Along with your domain registration, we offer three free months of website, email, and phone service, helping you get in front of potential customers right away. And if you’re ready to take your brand to the next level, we offer attorney-led trademark registration to protect your company’s image nationwide.


Step 2: Choose a South Dakota Registered Agent

South Dakota requires LLCs operating in the state to appoint and maintain a registered agent. The agent collects service of process at the SD street address provided to the state, then forwards those legal documents to the business in question.

A South Dakota registered agent can be an individual resident or an entity authorized to do business in the state. Either way, they must have a physical South Dakota address where they accept legal mail in person.

Hire Registered Agents Inc to form your South Dakota LLC and we’ll be your registered agent, too.

Can I be my own registered agent in South Dakota?

Yes. You or another member of your LLC can serve as your registered agent’s business. To do so, you must be a resident of the state. You’ll include your name, title at the company, and physical business office address in your LLC formation documents.

What is a noncommercial registered agent in South Dakota?

South Dakota identifies registered agents in the state as either commercial or noncommercial. A commercial registered agent has filed paperwork to register as one with the Secretary of State’s office and is given an identifying number for lookup ease. A noncommercial registered agent, on the other hand, has not filed this registration paperwork.


Step 3: File South Dakota Articles of Organization

Once your Articles of Organization are processed by the South Dakota Secretary of State, your LLC is officially formed. The filing can be submitted online for $150 or by mail for $165.

All the information you include in your South Dakota Articles of Organization will become part of the public record. Hire us as your registered agent and to form your LLC, and we’ll help you keep more of your data secure.

To file the Articles yourself, have the following information ready:

  1. Company name
    Remember to include “Limited Liability Company,” “Ltd. Co.,” “LLC,” or another accepted variation.
  2. LLC purpose
    Optional. You can leave this blank, but if you want to provide an entry, include a simplified explanation of your business activity or a generic purpose like, “To engage in lawful business activity in South Dakota.”
  3. Designated office address
    Include the street (and mailing, if applicable) of your initial business office. This can be a South Dakota address, but does not have to be.
  4. Registered Agent information
    If you’ve designated a noncommercial registered agent, include their name and physical South Dakota address. You can include a mailing address as well. If you’ve appointed a commercial registered agent (like Registered Agents Inc, for example), include their business name and commercial registered agent number.
  5. Organizer names and addresses
    Name and street address of at least one organizer of your South Dakota LLC organizers goes here. This is the person filing the document. They do not have to be a member of the LLC.
  6. Beneficial owners
    Optional. If you’d like to include names and street address for anyone with a controlling interest in our LLC, you may. Remember, this information will become part of the public record.
  7. Additional provisions
    Optional. Include additional information about your business if you’d like.
  8. Signatures
    The organizers need to sign and date the document.


Step 4: Set Up Business Operations

Registering your South Dakota LLC creates a formal business entity, but there’s more work to be done. Do the following to help get your business keep its footing:

  • Adopt an operating agreement.
    South Dakota does not require LLCs to have operating agreements. However, this doesn’t mean you shouldn’t put one in place. An operating agreement answers both small and large questions about how your LLC will function. For example, it’s in the operating agreement that a meeting cadence will be set and a process for a member’s departure will be established. Without an operating agreement, you’ll be subject to the rules set forth in South Dakota statutes.
  • Get an EIN.
    To open a business bank account or hire employees, you’ll likely need an EIN for your South Dakota LLC. Since they’re free to get from the IRS, having one is good practice regardless.
  • Manage company money.
    It’s important to keep your business and personal funds separate from each other. Opening a business bank account streamlines this separation, helps your business maintain its limited liability, and keeps your LLC’s finances organized.

Step 5: File BOI Report

Most LLCs in South Dakota need to submit a BOI Report to FinCEN, a branch of the U.S. Department of the Treasury. New as of 2024, this report collects information about your business’s beneficial owners.

Businesses formed in 2024 have 90 days post-formation to file. 2025 businesses will have just 30 days to file after registration. While the report itself is free to submit, failing to file it is not: late fees can reach $591 per late day.

Add BOI Report Filing service when you hire us to form your South Dakota LLC to ensure you’re squared away.


Frequently Asked Questions

Is South Dakota a business friendly state?

Yes! Without corporate tax, personal income tax, or statewide business licensing requirements, South Dakota makes it easy for its businesses to form and operate.

Does South Dakota require a business license?

No. There is no statewide business license requirement for LLCs in South Dakota. However, your industry or specific location within the state may have licensing requirements to be aware of. To find out how to get any required business licenses in South Dakota, consult your city and county websites, as well as industry-specific resources in the state.

What is the sales tax in South Dakota?

The state-imposed sales tax rate in South Dakota is 4.2%. Local municipalities may additionally include their own sales tax rate, up to 2%.

Are LLCs taxed in South Dakota?

LLCs in South Dakota have a relatively low tax burden. The state does not have any corporate taxes that LLCs must pay, nor does it have a personal income tax. However, your South Dakota LLC will still owe federal taxes.

How to change a business name in South Dakota?

To change the name of your South Dakota LLC, you’ll need to submit an Application for Amended Articles of Organization. This costs $60 to file and can be used not just to update your business name, but anything else on your original Articles. If your LLC is operating under a new name, but you don’t need to change the legal name of the business, consider registering a DBA (Doing Business As) name instead. This costs just $10.

Do South Dakota LLCs need to file an annual report?

Yes. LLCs in South Dakota are required to file annual reports to the Secretary of State’s office. It costs $50 to file an annual report online or $65 by mail. Your report is due on the first day of your LLC’s anniversary month each year. When you hire us to be your registered agent, we’ll file it for you at no extra cost.