How to Form an LLC
1. Find a Business Name
- Business Search: sos.enterprise.sd.gov/BusinessServices
Use the state’s Business Information Search to check whether your desired business name is already in use. If it says “No Results Found,” it is likely that the business name is available.
Under South Dakota statute, the name of your business must contain the words “limited liability company” or “limited company” or abbreviations “LLC,” “LC,” “Ltd.” or “Co.”[1]
2. Select a Registered Agent
Every domestic and foreign limited liability company must appoint and maintain a resident agent for service of process. This may be a commercial registered agent or a non-commercial registered agent.[2]
3. Register the LLC
There are two ways to apply for the registration of your LLC: online or by mail.
Option 1: File Online
Go to sosenterprise.sd.gov to access the state’s online form for LLC registration.
In the dropdown menu, select “Domestic Limited Liability Company” if you are a resident of South Dakota. Select “Foreign Limited Liability Company” if you are out of state.
Type your business name in the provided fields. If your LLC will be providing a professional service that requires licensing, select the appropriate type in the dropdown menu.
Enter the principal address of your business as well as a mailing address.
Indicate whether your registered agent is commercial or non-commercial. If the registered agent is a commercial entity, search for their name in the directory. If the registered agent is non-commercial, type in their information.
Provide the name and address of the LLC’s organizer. Add as many as needed.
Indicate whether your limited liability company will be managed by members (owners) or by managers. Provide the name and address of each manager or member.
Type your name in the provided field as your electronic signature, and add your title.
After indicating whether you will be filing your completed document by mail or online, enter your payment information. The filing fee is $150 for online filing and $165 for mail filing.
Option 2: File By Mail
Complete the appropriate form and send the document to the provided address with an enclosed payment.
Articles of Organization (Domestic LLC) – For in-state entities.
Filing fee: $165 check made payable to the Secretary of State
Mailing address:
Secretary of State Office
500 E Capitol Ave
Pierre, SD 57501
Application for Registration (Foreign LLC) – For out-of-state entities.
Filing fee: $765 check made payable to the Secretary of State
Mailing address:
Secretary of State Office
500 E Capitol Ave
Pierre, SD 57501
4. Obtain an EIN
- Apply Online: www.irs.gov
- Apply by Fax/Mail: Form SS-4
Every business is required to apply for an Employer Identification Number (EIN) with the IRS in order to begin operating.
5. Write an Operating Agreement
While South Dakota does not require LLCs to adopt an operating agreement, it can be useful to adopt one for internal purposes.
Download: PDF, MS Word, OpenDocument
6. Choose a Tax Classification
Below are the most common types of LLC tax classification:
- LLC – As an LLC, a sole proprietorship or partnership is considered a “pass-through entity,” which means all profits are taxed as income for the members/owners.
- S-Corporation – All business profits and losses are sent to the shareholders, who must pay income tax. To file as an S-corp, an LLC must file IRS Form 2553 within 75 days of formation.
- C-Corporation – All business profits and losses are filed as a separate corporate entity. To file as a C-corp, an LLC must file IRS Form 8832 within 75 days of formation.