How to Start Your LLC in South Dakota
Legal Bueno helps with everything you need to start your business. We take care of all the paperwork so you don't have to worry about it. Want to learn more about the process we handle? Keep reading!
Quick Summary:
- Filing Fee: $150
- Turnaround time: immediately
How do I start an LLC in South Dakota?
Thinking about starting an LLC? The process is pretty similar across the states. You'll start by picking a unique name for your business (you'll need to check to make sure it hasn't been taken!) and then filing some paperwork—usually called Articles of Organization or a Certificate of Formation—with your state's agency.
If you want to check the name availability for South Dakota, visit https://sosenterprise.sd.gov/BusinessServices/Business/FilingSearch.aspx.
After that's taken care of, you'll want to draft a governing doc for your business called an operating agreement & find any licenses you might need. Just keep in mind that each state has its own little quirks, so it's always a good idea to double-check specific requirements for your area.
What are the costs & processing times of starting a business in South Dakota?
Here's the rundown for South Dakota:
- The filing fee is: $150
- There are ongoing fees of $50 (every year)
- It usually takes immediately if you're filing online or 1-2 business days (plus mail time) if by mail.
Why South Dakota is a great state for your LLC
- Business Incentives: South Dakota provides various incentives through the Governor's Office of Economic Development, making it attractive for startups. The REDI Fund offers low-interest loans to qualifying businesses, aiding in their launch, expansion, or relocation.
- Favorable Business Structure: Establishing a limited liability company (LLC) in South Dakota is straightforward and efficient. This structure is particularly beneficial for startups and medium-sized enterprises, as it combines the protection of personal assets with the operational efficiencies of a larger corporation.
- Low Filing Costs: The cost to file for an LLC in South Dakota is just $50, which is significantly lower than many other states. This affordability reduces the financial barrier for entrepreneurs looking to start their businesses.
- Personal Asset Protection: Forming an LLC protects your personal assets from business liabilities and debts. This safety net is crucial for entrepreneurs who want to minimize their financial risks.
- Tax Advantages: South Dakota offers favorable tax treatment, allowing for simple tax filings and potential savings. This makes financial planning and management easier for business owners.
- Regulatory Ease: South Dakota’s streamlined regulations for managing and maintaining an LLC simplify compliance. This ease of administration allows entrepreneurs to focus more on growing their businesses rather than navigating complex legal requirements.
In summary, starting a company in South Dakota offers entrepreneurs financial incentives, protective business structures, low startup costs, and favorable regulatory and tax environments, making it an attractive state for launching and running a business.
Legal Requirements
Remember! Legal Bueno will handle all of these requirements for you, but if you're interested, here are the legal requirements for South Dakota:
Articles of Organization
The articles of organization must include:1. The name of the company;
- The address of the initial designated office;
- The information required by S.D. Codified Laws § 59-11-6 (appointment of registered agent);
- The name and address of each organizer;
- The duration of the LLC if other than perpetual;
- Whether the company is to be manager-managed, and, if so, the name and address for each initial manager; and
- Whether one or more of the members of the LLC are to be liable for its debts and obligations.
- Whether the LLC is authorized to establish one or more series and the matters required under § 47-34A-702.
The articles of organization of an LLC may include:1. Provisions permitted to be set forth in an operating agreement; or
- Other matters consistent with law.
The articles of organization of an LLC may not vary the nonwaivable provisions of S.D. Codified Laws § 47-34A-103(b) (limitations on operating agreement).
S.D. Codified Laws § 47-34A-203
Filing fee: $150
S.D. Codified Laws § 47-34A-212
Filing Process
After you've prepared the initial formation documents, you need to file it! Here is what South Dakota laws require for filing:
The original articles of organization must be delivered to the secretary of state. Delivery may be made by electronic transmission if permitted by the secretary of state. If the document is not transmitted electronically, the secretary of state may require one exact or conformed copy to be delivered with the document. If the secretary of state finds that the articles of organization conform to law, the secretary of state must, when all required fees have been paid:1. Endorse the original with the word “Filed,” and the month, date, and year of the filing;
- File the original;
- Issue a certificate of organization and affix to the certificate, the exact or conforming copy.
The certificate of organization, together with the exact or conforming copy of the articles of organization affixed to it by the secretary of state, must be returned to the principal office of the LLC or to its representative.
S.D. Codified Laws § 47-34A-202.1
Articles of organization or any other record authorized to be filed must be in a medium permitted by and delivered to the Office of the Secretary of State. Unless the secretary of state determines that a record fails to comply as to form with the filing requirements, and if all filing fees have been paid, the secretary of state will file the record and send a receipt to the LLC or its representative.
S.D. Codified Laws § 47-34A-206
Additional Legal Considerations
Here are some additional relevant laws that might be useful when operating your business in South Dakota:
Operating agreement–scope, limitations
S.D. Codified Laws § 47-34A-103
Effect of records that conflict with Section 47-34A-103 or operating agreement
S.D. Codified Laws § 47-34A-103.1
Annual report for secretary of state
S.D. Codified Laws § 47-34A-211
Certificate of existence or authorization
S.D. Codified Laws § 47-34A-208
Series LLC Provisions
S.D. Codified Laws § 47-34A-701