How Much Does It Cost to Start an LLC in South Dakota?

Legal business registration — and making sure your business is in compliance — involves some necessary expenses. Some of these costs are payable to the South Dakota Secretary of State, while others are due to additional state entities or the federal government. Here are some of the most common requirements and fees.

Please be aware that South Dakota business license and permit fees may need to be paid when you first form your business, on an ongoing schedule or on an ad hoc basis. Find more details below.

Initial South Dakota LLC Fees

You’ll need to file as an LLC with the South Dakota Secretary of State and pay a filing fee when you first formally form your business. Here are the current South Dakota LLC fees and filing times:

State Fee State Filing Time Expedited Filing Time
$150 3 Weeks 1 Business Day
State Fee $150
State Filing Time 3 Weeks
Expedited Filing Time 1 Business Day

When you form your LLC with us, Incfile will charge you this fee and forward it to the South Dakota Secretary of State when we file your formation paperwork.

Incfile can file your formation paperwork for you for free — just pay the required South Dakota LLC filing fee
South Dakota allows you to form your LLC more quickly by paying an expedited fee

Employer Identification Number

Every LLC in the U.S. should obtain a unique Employer Identification Number (EIN) from the Internal Revenue Service. You'll use it when you open a business bank account, file taxes and pay employees. It's available at no cost from the IRS, or have Incfile obtain one for you.

Foreign LLCs

When you want to do business in a state other than the one where your business is based, you must create a foreign LLC.

South Dakota Foreign LLC Registration

Foreign companies are those which are formed in another state or country. In order to transact business in South Dakota these entities must file an Application for Certificate of Authority with the South Dakota Secretary of State for a Foreign LLC.

The registration must be accompanied by a certificate of good standing or a certificate of existence from the domestic state of formation. Register your out-of-state foreign company by filing your Application for Certificate of Authority with the Secretary of State. The filing fee for a South Dakota Foreign LLC is $750, with an additional fee of $15 if you choose to file a paper form. The state may have additional requirements so contact the South Dakota Secretary of State for more information.

Foreign Qualification to Operate in Another State

If you plan to expand your South Dakota LLC into another state, you’ll first need Foreign Qualification or a Certificate of Authority or Compliance from that state. This is necessary if you'll have a physical presence, employees or banking in that state.

This process will likely require you to complete an application and pay a filing fee. Each state typically has its own requirements, so you’ll want to contact the state government entity that administers business (usually the Secretary of State) for specific instructions.

If you need assistance, Incfile provides complete Foreign Qualification service for all states.

South Dakota Annual Report Requirements

Most states — including South Dakota — require businesses to file an annual (or other periodic) report with the Secretary of State. For the state of South Dakota, the Secretary of State requires you to file an annual report every year. When you file your annual report, you’ll need to pay a fee of $50. An additional charge of $15 is added if you choose to file a paper version of your annual report instead of electronically, online. Here are the South Dakota annual report filing requirements:

Annual Report

Frequency

Annually

Due Date

Before 1st day of 2nd month following anniversary month.

Filing Fee

$50
Incfile can also complete and file your South Dakota annual report on your behalf

South Dakota Business License and Permit Requirements

As a business owner, it’s your responsibility to make sure you have the proper state, federal or local business licenses to operate your South Dakota LLC. Some of the associated fees only need to be paid once, while others are ongoing charges.

Permits and licenses vary based on:

1

The industry your LLC operates in (e.g., restaurants will need health permits)

2

The location of your LLC (state, county or city) (e.g., a license to conduct business from the city of Pierre)

3

The type of business you run (e.g., healthcare providers must meet HIPAA requirements)

Running your business without the required licenses may expose you to risks and fines from federal, state and local governments.

You can research these permits and licenses yourself, or use Incfile’s Business License Research package, which includes:

  • A complete report on all the licenses, permits and tax registrations your LLC will need
  • The applications you'll need to file with the state, regional and federal licensing authorities

Operating Agreements

The state of South Dakota does not require businesses to have an LLC Operating Agreement in place.

An Operating Agreement is a document that covers the rights and duties of pertinent members, how the business will be run, how managers and members are chosen and several other key areas. It is typically filed with your Articles of Organization at the time that you officially form your LLC.

This document can be extremely helpful in making sure you’re organized and prepared for any future events that may affect your business.

Incfile can draft a general Operating Agreement template when you form your South Dakota business.

If you have any unique requirements, you can make the necessary changes to accommodate them.

Other Potential South Dakota LLC Fees or Requirements

There are several other fees or requirements that you may need to meet during the life of your LLC. These ad hoc fees will only be payable in specific circumstances, which we’ve listed below.

Obtaining a Fictitious Name or DBA

If you wish to establish a South Dakota DBA, you must file a form to register your fictitious business name with the South Dakota SOS and pay a filing fee of $10.

Incfile offers the service of filing Fictitious Name or DBA forms on your behalf

Changing the Registered Agent

Your LLC needs a South Dakota Registered Agent, which you must appoint when you file your Articles of Organization. You can also switch to a new Registered Agent later by filing a Statement of Change with the South Dakota SOS for a fee of $10.

Have Incfile serve as your Registered Agent.

It’s free for the first year if you form your LLC with us and $119 a year after.

Reserving a Name for Your LLC

If you don’t want to form your LLC right away, you can reserve a business name for 120 days with the South Dakota Secretary of State by filing an Application for Reservation of Name and paying a filing fee of $25. First, perform a South Dakota business search and learn about business name rules to ensure you choose a name that meets state requirements.

Amending Certain Facts About Your LLC

Your business formation documents state certain facts about your South Dakota business at the time it's formed. Over time, these facts may change. If they do, you'll need to file an Application for Amended Articles of Organization with the South Dakota SOS for a filing fee of $60. You can do this yourself or have Incfile file the amendments on your behalf.

You may want to file Articles of Amendment when you:

  • Add, remove or change an LLC member or manager
  • Alter the stated business activities of your LLC
  • Change the business address of your LLC

Getting a South Dakota Certificate of Good Standing

Some organizations will request that you prove your LLC’s compliance with laws and tax requirements. Most states refer to this as a Certificate of Compliance, Existence or Good Standing. If you need to prove you have met your commitments, you’ll need a Certificate of Good Standing from the South Dakota Secretary of State. You can order a Certificate of Good Standing/Existence from the SOS online and pay a fee of $20.

Incfile can obtain a South Dakota Certificate of Good Standing (or Existence) on your behalf

The fees listed above detail many of the charges a standard LLC will be required to pay in South Dakota. In some unusual circumstances, there may be other one-off, periodic or ad hoc fees not listed above.

Of course, your LLC will also probably need to pay self-employment, payroll, federal, state and sales taxes. More information about taxes can be found on the South Dakota Business Tax page.

FAQs About South Dakota LLC Fees

What Happens to the State Fees I'm Charged When Forming My LLC?

We will charge you this fee at cost and then pay the fee to the Secretary of State on your behalf when forming your South Dakota business.

Where Do I Get Business Licenses and Permits for My LLC?

It depends on various factors, including:

  • The type of business you run
  • Where your business is located
  • Governing bodies in your industry
  • Federal, state and local regulations

Many new businesses need a business license, but you may be required to have additional licenses and permits. Our Business License Research package can take the guesswork out of it for you and help you learn what your LLC needs to be in compliance.

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