Updated on: June 24th, 2024

Cost to Form an LLC in South Dakota (All You Need to Know)

Hire Professionals to Create LLC in South Dakota (from $0 + state fees)

Establishing an LLC in South Dakota requires more financial commitment than just the filing cost of setting up. Contrary to what you might think, it does not have to be as expensive! We’ve got all the details about the initial and regular South Dakota LLC filing fee and cost below – we’ll also provide tips on how you can reduce your expenses too.

Want to form your own LLC? Let’s do it, but if you don’t know how to start, take a look at our easy step-by-step guide on how to start an LLC in any LLC.

If you want to skip the hassle of starting a South Dakota LLC yourself, consider using professional help for the best price in the market:

Quick Costs for South Dakota LLC Breakdown & Best Options

Who forms the LLC?Total fees



You form the LLC in South Dakota Yourself
$225 = ($150 Articles of Organization +$50 Annual Fee + $25 Name Reservation )
by using ZenBusiness$0 + state fees
by using Northwest Registered Agent$39 + state fees
see our other best LLC service providersvaries

Pros and Cons of Starting Your LLC in South Dakota

Here are a few Pros and Cons that everyone must check out before starting your own LLC in the state of South Dakota.

PROS

Starting a Limited Liability Company (LLC) in South Dakota has many notable advantages.

  • To begin with, the state is one of six that does not require an LLC to have a brick-and-mortar office. This allows founders to keep significant overhead costs down and make it easier to achieve their business goals.
  • Another key benefit is that South Dakota gives owners the maximum managerial freedom allowed by law; owners may create their own management structure and designate any combination of members and managers.
  • In addition, the state doesn’t collect income tax on LLCs, meaning owners don’t have to worry about additional tax implications when working in South Dakota.
  • With its flexible regulations and tax benefits, forming an LLC in this great state is an excellent way for entrepreneurs to chart their own course as they launch their businesses.

CONS

Starting an LLC in South Dakota can offer several advantages, however, it is important to consider the potential drawbacks before taking the leap.

  • Two primary cons are that South Dakota may not be the most desirable location for some businesses and that fees associated with registration can take a significant toll. The state has a small population, so some businesses seeking an expansive market size within their legal boundaries may experience reduced profit margins due to limited access to customers.
  • Additionally, registration fees are often high and filing an annual report requires paying additional fees every year.

Despite these downsides, the benefits of forming an LLC in South Dakota should also be taken into account when making this important decision.

How Much Does an LLC Cost in South Dakota? (All Fees Broken Down)

Creating an LLC in South Dakota is simple, affordable, and straightforward. For just $150, you can file the necessary South Dakota Articles of Organization with the South Dakota Secretary of State. Upon successful completion, your LLC will be legally established!

Now let’s take a look at other costs apart from Articles of Organization.

South Dakota Annual Report Fee ($50)

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Keeping up with government requirements can be tedious, but for South Dakota LLCs it’s especially important to file an annual report before November 15th. Otherwise, you may incur a $50 penalty from the Secretary of State. Fortunately, submitting this form is simple through their website!


South Dakota Registered Agent Fee ($39 or $125/year)

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In South Dakota, when forming your LLC you must designate a Registered Agent who will receive any legal documents or state notices sent to your business. The Registered Agent needs an address in the State and should generally be available during regular hours of operation. You won’t have to pay anything extra if you decide to serve as your own Registered Agent, or select someone else that is familiar with the role.

Here are our recommended Agent service providers:

  • Northwest Registered Agent services is the perfect choice for those seeking to establish a new business and gain access to a registered agent, with full LLC creation package starting at only $39 + state fees

OR:


South Dakota Foreign LLC Cost ($750)

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Ready to expand your already existing LLC in another state into South Dakota? You’ll just need to register it as a foreign LLC by filing an Application for Certificate of Authority. Registering online is fast and affordable at only $750, or you can send the application via mail for a small fee increase of $15. Get started today on broadening your business horizons!


LLC Operating Agreement Fee ($0)

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A South Dakota LLC Operating Agreement is a legally binding document that every Single-Member or Multi-Member LLC should create in order to outline the rights, responsibilities, and ownership of each member. This agreement should be stored alongside other business records and given out to all members – an expense which can range from $50-$200 on most websites. Through having this contract solidified, any potential disputes within the company will have clear guidelines for resolution.


LLC EIN Number Fee ($0)

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An EIN Number, also known as an Employer Identification Number or a Federal Employer Identification number is essential for tax filing purposes and opening up an LLC bank account. Fortunately, it’s free to obtain your LLC’s EIN from the Internal Revenue Service (IRS). In mere minutes you can set about submitting your application online with no added service fees!

EIN number is essential for your business bank account.


Other LLC Filing Costs (Optional)

There are optional fees associated with LLC formation:

LLC Name Reservation ($25)

Protect your business name for 4 months by simply filing an Application for Reservation of Name and paying the small fee of $25. Don’t miss out on the chance to secure your desired LLC name before someone else does!

Foreign LLC Name Reservation ($25)

When a foreign LLC’s name is unavailable in the state, they can still register with an alternate one by submitting an Application for Registration of Name and paying a nominal $25 filing fee.

“Doing Business As” (DBA) Name ($10)

Looking to create a business name aside from your LLC’s legal one? Registering for a DBA is easy – just head online and register with the Secretary of State by paying the simple $10 filing fee.

Certified Document Copies ($15)

To get official copies of your South Dakota business documents, simply place an order with the Secretary of State. It only costs $15 plus a nominal fee for each page that you need!

Certificate of Good Standing ($20)

Secure a South Dakota certificate of good standing in no time by ordering through the Secretary of State and paying only $20 – an amount that won’t break your bank. Banks and other financial institutions often require this document, so don’t wait to get yours!


Cost of Filing Formation Certificates

South DakotaDomestic LLCForeign LLC
Online Filing$150 $750
Annual Report$$50$$50
Name Reservation fee $25$25
By MailBy Mail: Fill out the application form, and send it to Secretary of State Office, 500 E Capitol Ave, Pierre, SD 57501. Costs $165.

By Mail: Fill out the application form, and send it to Secretary of State Office, 500 E Capitol Ave, Pierre, SD 57501.
 Costs $765.



South Dakota Business License and Permit Fees (varies)

Depending on the city, state and industry your LLC does business in South Dakota, you may need to obtain additional Business Licenses or Permits. These fees can range from low to high depending on location and sector but are generally quite inexpensive. Certain licenses and permits come from the state level while others are issued by a local municipality (towns, cities or counties).

LLC Taxes (varies)

The expenses of owning a South Dakota LLC can vary substantially due to the many different types of taxes that need to be paid each year.

Some of the taxes LLC owners pay include:

  • Federal taxes
  • State and Local income tax
  • Business taxes
  • Sales and use tax
  • Payroll tax (if you have employees)
  • Unemployment insurance tax (if you have employees)
  • Property tax (if the LLC owns property)

Taxation in South Dakota varies based upon the industry, level of business activity and individual circumstances. Therefore, it’s impossible to give an accurate estimate without taking your unique variables into account. Rest assured that no matter what your venture or how much you plan on making, we will help determine which taxes apply to ensure compliance with state regulations.

Cost Changes Often! Where Can I Find the Most Up-to-date Cost & Tax Info?

Starting a new business can be an intimidating process, so it’s natural for entrepreneurs to have questions and concerns about the associated expenses. Don’t feel like you have to tackle every issue independently; if you are curious about the expenses related to setting up a South Dakota Limited Liability Company (LLC), reach out to the South Dakota Secretary of State for helpful guidance and answers. The knowledgeable staff can provide comprehensive information on filing fees, estimated taxes, registered agent services, and much more — so don’t hesitate to get in touch with this reliable source of support!

If you have any queries concerning the expenses associated with establishing a South Dakota LLC, don’t hesitate to reach out to the South Dakota Secretary of State for assistance.


How to Start an LLC in South Dakota?

Once you are done allotting your budget for the LLC it’s time to begin the formation Process. Follow these basic steps to form your own LLC in South Dakota.

Step 1: Choose a Name for Your LLC

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South Dakota requires that all Limited Liability Companies (LLC) have their name contain the words “Limited Liability Company”, or any of its abbreviations, such as “L.L.C.,” “LLC,” “LC,” and  “L.C.” Additionally, “limited” may be shortened to solely “Ltd.,” while “Company” can become just simply a single word – Co”. To ensure your LLC has an original identity from other businesses in the state you should check for available names through the South Dakota Secretary of State business database immediately before filing any applications!

Secure your desired name for the next 4 months by sending an Application for Reservation of Name to South Dakota’s Secretary of State. This simple process can guarantee that you’ll have the exact name you’d like to use!


Step 2: Appoint a Registered Agent

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Every South Dakota LLC requires an agent for the service of process within the state. This is a specific individual or business entity that voluntarily agrees to accept legal notices on behalf of the LLC in case it faces litigation. The LLC’s registered agent may be either a permanent resident of South Dakota or any business licensed by the State; however, they must have a valid street address located and have personal assets in the state. To view available agents, visit your local Secretary Of State website and peruse their directory list!


Step 3: File Articles of Organization

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To form a South Dakota Limited Liability Company (LLC), one must officially submit their Articles of Organization to the Secretary of State.


Step 4: Prepare an Operating Agreement

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South Dakota is one of the few states that do not require LLCs to have a formal operating agreement. However, it is exceptionally advisable to draft and execute an Operating Agreement. This document serves as a source of reference for members’ rights, roles, responsibilities, liabilities, and obligations within the company—all information necessary for successful operations.

As your business expands or you modify existing agreements in any way, be sure to update this internal document so all stakeholders remain informed on current expectations and regulations throughout every stage of growth. If no official agreement exists or needs revisions, its articles of organization/bylaws/member control will collectively become your operational protocols instead.


Step 5: Obtain an EIN

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Whether you have a one-member LLC or an LLC with multiple members, it must obtain its own IRS Employer Identification Number (EIN). However, if the sole member elects to be taxed as a corporation instead of a disregarded entity then they need to get an EIN. Gladly, there is no charge for obtaining this number after you submit your online application on the IRS website.


Step 6: File Annual Reports

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All South Dakota LLCs and international companies licensed to do business in the state are required to submit an Annual Report with the Secretary of State. This report must be filed before February 1st of the year after your company was authorized. Each following year, this annual report needs to be submitted on or prior to that same date each time. The Department of State will mail out a reminder notice around one month ahead for you so make sure they have your current address! You can conveniently file online or through postal mail as well!


Get Professional Help in Forming an LLC in South Dakota

It can be difficult and time-consuming to form a South Dakota LLC all by yourself.
That’s why we decided to give you a few of the best options for professional services that can help you start an LLC in no time & with 0 effort!

#1 – Create an LLC in South Dakota Using Northwest Registered Agent

Northwest has vast experience in creating LLCs and Corporations. They by far have the best support and client satisfaction rate. We’ve used and tested them ourselves and can guarantee that they’ll do an exceptional job for you.
You can read our full & extensive Northwest review here.

$39+State Fees

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Rating: 4.9/5
Review count: 4850+

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Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!


#2 – ZenBusiness Will Form an LLC in South Dakota

ZenBusiness is one of our top-rated LLC services as well. They have a super value-to-price ratio. And it’s perfect for those who are looking for the cheapest option to form their LLCs. When we tested their service — they’ve done a great job, so we can honestly recommend them.
To know more about them — read our full ZenBusiness review here.

$0 + State Fees

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Rating: 4.8/5
Review count: 4830+

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Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.


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