How to form an LLC in South Dakota

Who should form an LLC in South Dakota?

Anyone who lives in South Dakota or runs their business from there. If you form in another state but operate in South Dakota, you will usually have to register there as a foreign LLC anyway, paying both states' fees. See home state or another state.

How do you form an LLC in South Dakota, step by step?

1. Choose and check the name

   Search the state's business records and include "LLC", "L.L.C." or "Limited Liability Company" in the name.

2. Appoint a registered agent

   A person or company with a physical street address in South Dakota. See what a registered agent is.

3. File the Articles of Organization

   Online through the Secretary of State's business portal, usually approved immediately, for $150, or by mail for $165.

4. Get an EIN and sign an operating agreement

   The EIN is free from the IRS. See LLC operating agreement.

5. Register for state taxes

   Sales tax and payroll as needed. Then note the first yearly filing date.

What does South Dakota require every year?

An annual report each year, $55 online or $70 by mail, due in the LLC's anniversary month, starting the year after formation. The online fee rose from $50 on July 1, 2025. Sources describe the deadline as either the first or last day of that month, so file at the start of the month to be safe; filing opens a month or two early. Late reports carry a $50 fee, and continued failure leads to administrative dissolution.

For deadlines, fees and late penalties in detail, see South Dakota LLC yearly filings.

What do the first two years cost?

South Dakota's lack of income tax helps only if the business and owners are taxed in South Dakota. Owners living elsewhere pay their home state's tax on the profit. See home state or another state.

Should you file it yourself or use a formation service?

Filing yourself costs only the state fee, and the South Dakota filing is short enough for most owners to complete. A formation service saves time, can act as your registered agent and may send reminders for yearly filings, but compare total yearly costs: low headline prices are often paired with paid add-ons such as expedited filing, operating agreements or EIN applications, which you can do yourself free. Whichever you choose, keep the approved filing, the EIN letter and your operating agreement together. See how much an LLC costs.

Can a non-resident form an LLC in South Dakota?

Yes. South Dakota has no residency or citizenship requirement for an LLC's members or managers. You need a registered agent with a South Dakota street address and an EIN; a foreign owner without a Social Security number applies for the EIN on Form SS-4. A single-member LLC owned by a foreign person files Form 5472 with a pro forma Form 1120 every year, even with no US income. See can a non-resident own a US LLC and annual filings for foreign-owned LLCs.

What happens if you miss a required report?

The state usually charges a late fee and marks the LLC as not in good standing, which can block a certificate of good standing, a bank account or a loan. If the filing stays overdue, the state can administratively dissolve the LLC, ending its liability protection and its claim to the name. Reinstatement means filing every missing report and paying the fees owed, so put the dates in your calendar. See reinstating a dissolved LLC.

Which South Dakota taxes apply to an LLC?

South Dakota has no personal or corporate income tax. The state sales tax is 4.2%, plus municipal taxes, and it applies to many services; register with the South Dakota Department of Revenue if you sell taxable goods or services.

If you sell online, see South Dakota sales tax for online sellers.

Federally, a South Dakota LLC is taxed like any other LLC. See how LLCs are taxed. For a side-by-side view of state costs, see how much an LLC costs.

This guide is general information. It is not tax or legal advice for your situation.