When starting your business in South Dakota, you'll need to choose what kind of entity structure to pursue for your business. Many new business owners choose to form a limited liability company (LLC) because of its many advantages. An LLC gives owners limited liability like a corporation. But it also offers more flexible taxation and management options.
You can follow the steps below to create an LLC in South Dakota. For more information on how to form an LLC in any state, check out our article on how to start an LLC. You can also use our online LLC formation service to register your LLC.
When selecting a business name for your South Dakota LLC, be sure you follow the state's laws around LLC names.
LLC name must be distinguishable. You must pick a name for your LLC's name that's distinguishable (different) from the names of other business entities already on file with the South Dakota Secretary of State (SOS). You can check which names have already been taken with the SOS's business information search and the business name availability search. (S.D. Codified Laws § 47-34A-105 (2025).)
LLC name must include an entity designator. Under South Dakota law, an LLC must contain the words "limited liability company" or "limited company" or the abbreviation "L.L.C.," "LLC," "L.C.," or "LC." You can abbreviate "limited" to "Ltd." and "company" to "Co." (S.D. Codified Laws § 47-34A-105 (2025).)
Name reservation. You can reserve an available name for 120 days by filing an Application for Reservation of Name with the SOS. You can renew the reservation 60 days after the previous name reservation has expired. As of 2025, the filing fee for the application is $10. (S.D. Codified Laws § 47-34A-106 (2025).)
Using a DBA. You don't have to use your LLC's official legal name registered in your articles of organization when you do business out in the real world. Instead, you can use a fictitious name, also called a "DBA" (short for "doing business as"), "assumed name," or "trade name." If you do use a name other than your business's legal name, you must file a fictitious name statement with the SOS. You can register your DBA online through the SOS website. As of 2025, the fee to register a trade name is $10. (S.D. Codified Laws § 37-11-1 (2025).)
Every South Dakota LLC must have an agent for service of process in the state—known as a "registered agent." A "registered agent" is an individual or business entity that agrees to accept legal papers on the LLC's behalf, for example, if the LLC is sued.
Your LLC's agent can be either:
Commercial registered agents must file a commercial registered agent listing statement with the SOS.
In South Dakota, a commercial or noncommercial registered agent can be either a:
You can appoint yourself or another LLC member as the LLC's registered agent. Your agent must have a South Dakota address.
(S.D. Codified Laws § 37-11-1 (2025).)
You can create a South Dakota LLC by filing Articles of Organization with the SOS. Your articles must include the following information:
(S.D. Codified Laws § 47-34A-106 (2025).)
You can file your articles online using the SOS's Business Services Online. You can also mail in a paper copy of your articles to the SOS. As of 2025, the filing fee for South Dakota's Articles of Organization is $150 if filed online and $165 if filed by paper.
South Dakota, like most states, doesn't require LLCs to adopt an operating agreement. Though you're not legally required to create one, making an operating agreement for your company is important.
Your operating agreement will establish the rules and procedures for how your LLC will operate, including your LLC's management structure. Without an agreement, the state's default rules under its Uniform LLC Act will govern the LLC's operations.
In addition, an operating agreement can also help preserve your limited liability by showing that your LLC is truly a separate business entity from its owners. Moreover, investors and banks typically like to see an LLC's operating agreement when determining whether to invest or loan money to the company.
Your operating agreement should generally cover:
You don't need to file your operating agreement with the state but you should put it in writing.
For help creating an LLC operating agreement, you can use our online LLC formation service.
Other tax and regulatory requirements might apply to your LLC. For instance, your LLC might need to obtain an EIN, apply for business licenses and permits, and register for business taxes.
EIN. If your LLC has more than one member, it must obtain a federal employer identification number (EIN), even if it has no employees. If you form a single-member LLC, you must obtain an EIN for your LLC only if you'll have employees or you elect to have your LLC taxed as a corporation instead of a sole proprietorship (disregarded entity). You can obtain an EIN by completing an online EIN application on the IRS website. There's no filing fee.
Business licenses. South Dakota doesn't issue a general business license at the state level. However, depending on your business activities and location, your LLC could need to obtain local and state business licenses. For local licenses, check with the clerk for the city or town where the LLC's primary place of business is located. For state license information, you can read the licensing guide provided by the South Dakota Governor's Office of Economic Development.
Tax registration and filings. South Dakota doesn't have a personal income tax or corporation income tax. So regardless of how your LLC is taxed, you or your company won't need to pay income tax to the state. You also won't need to withhold income tax from employees' wages. But your LLC might still be responsible for other taxes such as sales tax (if you sell taxable goods or services) and reemployment assistance (RA) tax (if you have employees). You'll register to collect and pay sales tax to the South Dakota Department of Revenue (DOR). You'll register to pay the RA tax with the state's Department of Labor and Regulation (DLR). For more information on state LLC taxes, check out our article on LLC annual report and tax filing requirements in South Dakota.
Here are some other questions you might have about your South Dakota LLC.
If you're just starting your business or have already been operating as a sole proprietor, you should consider forming an LLC. LLCs limit an owner's personal liability for business debts and lawsuits and offer a lot of flexibility when it comes to ownership, management, and taxation of the business.
To learn more about LLCs and decide if it's the right business structure for you, see our article on LLC basics.
Below are the fees (as of 2025) you might need to pay to form your LLC in South Dakota:
Filing on your own is often the cheapest option, but completing all of the forms and filing them yourself can be complicated. Hiring a lawyer is another option, but it will often cost you hundreds, if not thousands, of dollars in the process. If you'd like help completing all the filings, try our online LLC formation service.
To learn more about the costs associated with forming and running an LLC, see our article on how much it costs to form an LLC.
Yes. Every LLC must file an Annual Report with the SOS. The report is due by the first day of the anniversary month of your LLC's formation. For example, if you created your LLC on July 6, then your LLC's report would be due the following year by July 1. (S.D. Codified Laws § 47-34A-211 (2025).)
You can file the annual report online or mail a paper copy of the report to the SOS. As of 2025, the fee to file the Annual Report in South Dakota is $50 if filed online and $65 if filed by paper.
For more details, see our article on LLC annual reports and tax filing requirements in South Dakota.
Apart from annual reports, your LLC will need to file and pay applicable taxes to the local, state, and federal governments. In addition, your LLC might need to obtain and periodically renew any required general or special business licenses or permits. You'll be responsible for keeping track of these maintenance requirements to keep your LLC in good standing and legally compliant.
Starting in 2024, all LLCs were previously required to submit a beneficial ownership information (BOI) report to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of Treasury. However, in March 2025, after some constitutional challenges, FinCEN revised the BOI reporting rule so that the requirement only applies to companies created outside the U.S. So, if you form your LLC within the U.S., then you no longer need to worry about the BOI reporting requirement.
You're not required to have an operating agreement for your LLC in South Dakota. Though, it's highly advisable to have one. An operating agreement can help protect your limited liability status, prevent financial and managerial misunderstandings among members, and ensure that you choose the rules that govern your business instead of your state's default rules.
South Dakota, like many states, doesn't issue a general business license at the state level. But depending on what type of business your LLC is engaged in and where it's located, you could need to obtain local and state business licenses as well.
For professional license information, start by looking through the links on the DLR's boards, commissions, and councils page. For details on tax licenses issued by the state, visit the businesses section of the DOR website. Check with your city or county for details on local licenses, such as business and tax licenses and building and zoning permits.
You can find extensive details about state and local regulatory requirements in our South Dakota business license article.
South Dakota is one of a handful of states that doesn't have a personal income tax. South Dakota also doesn't have a corporate income tax. So you and your LLC won't be responsible for paying taxes on your business income at the state level. But you'll still need to file and pay federal income taxes to the IRS.
You might be responsible for registering and paying other business taxes. If you have employees, you might need to pay the state's RA tax to the DLR. If you sell taxable goods or services, you'll need to collect and pay sales tax to the DOR. Keep in mind that your local governments might have additional tax requirements.
You can read our article on South Dakota tax filing requirements for more details.
Yes. To do business in South Dakota, all LLCs organized outside of the state (called "foreign LLCs") must register with the SOS. Your foreign LLC must appoint a registered agent for service of process that's physically located in South Dakota.
To register, file an Application for Certificate of Authority with the SOS. Along with your application, you must include a certificate of existence or a similar document from your home state.
You can file the application online or by mail. As of 2025, the filing fee to register a foreign LLC in South Dakota is a steep $750. You must pay an additional $15 to file by mail.
Before filing, make sure the LLC's name is available in South Dakota. If your LLC's name isn't available, you must adopt an alternate name to transact business in the state.
(S.D. Codified Laws §§ 47-34A-1001 and following (2025).)
See our article on qualifying to do business outside your state for more guidance.
Yes. For most formation purposes, a South Dakota single-member LLC is considered the same as a multi-member LLC. The steps to form a single-member LLC in South Dakota are generally the same as those listed above.
Single-member LLCs do have additional flexibility when it comes to filing a tax return. To learn more, see our article on how single-member LLCs pay federal income tax.
Maybe. South Dakota allows some professionals to form a professional LLC (PLLC) or professional corporation. For instance, attorneys, chiropractors, nurses, some types of therapists, public accountants, veterinarians, and others can form PLLCs. You'll need to look at state law, particularly under Title 47, and check with your regulating authority to see whether you belong to a profession that can form a PLLC.
Each profession has its own laws and rules regarding PLLC names, membership requirements, and service restrictions.
If you reach the point where it's time to close your business and cease all operations, then you'll want to properly dissolve your LLC to limit your liability for lawsuits and government fees. To dissolve an LLC in South Dakota, you should:
(S.D. Codified Laws §§ 47-34A-801 and following (2025).)
You'll also need to close your tax accounts and take any other steps necessary to close out your business. See our article on what you need to do when closing your business for more in-depth information and guidance.
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