South Dakota Business Facts
South Dakota is widely recognized for non-taxable personal income. It does not also tax corporate income and capital gains. Moreover, the crime rate and energy costs in South Dakota are relatively low.
Major Companies Headquartered in South Dakota
South Dakota is the headquarters of many major companies including The Evangelical Lutheran Good Samaritan Society, Highmark, Avera Health, Sanford Health, and Regional Health.
South Dakota is an attractive place to start a new venture because of its low cost of living, high per capita personal income, as well as low taxes.
There are 3 basic options: a Corporation, LLC or DBA. Click here to learn more about business entities.
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in South Dakota, but we highly recommend you do the following before searching South Dakota state databases:
NOTE: Familiarize yourself with the South Dakota naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.
Restrictions on South Dakota Business Name & Business Purpose
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in South Dakota.
How to form an LLC in South Dakota
How to Incorporate in South Dakota
NOTE: When registering a new company the Secretary of State can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.
TIP: Check our order form to see how long South Dakota is currently taking to process regular and expedited orders.
How to File a DBA in South Dakota
Optional Considerations when registering a South Dakota business
Ready to register a business in South Dakota?
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
Top 5 Major Banks in South Dakota
TIP: Our business formation service includes a free banking resolution for your use.
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.
DBA: Your Fictitious Business Name should be valid for 5 years, with option for renewal.
LLC: South Dakota corporations are required to file a Periodic Report with the South Dakota Secretary of State each year on or before the first day of their anniversary month, in addition to general taxation. Information on your business’ taxes can be found here.
Corporation: Business in South Dakota should file an annual report on or before the first day of their anniversary month to the Division of Corporate and Consumer Services. LLCs and Corporations will pay a filing cost of $50.
Business Services (for Corporation and LLC filings)
500 East Capitol Avenue Ste 204
Pierre, SD 57501-5070
South Dakota Taxation Departments
South Dakota Labor and Employment Departments
South Dakota Startup Resources
1. Small Business Administration (SBA) South Dakota District Offices
2. SCORE South Dakota
3. South Dakota Legal Statutes
6. Angel.co South Dakota Startups
7. South Dakota Business News
9. South Dakota Small Business Development Center
10. South Dakota DENR
Wow loved it thankyou! I dreaded making this for a month thinking it would be a hassle. It wasn't thanks to you guys!
Excellent in all aspects. Perfect for new business owners with limited resources but wants to start it off right.