How to Start an LLC in South Dakota

South Dakota LLC filing fee & timeline

To form an LLC in South Dakota you file your Articles of Organization with the state and pay the state filing fee of $150 online (or $165 on paper). Incofile adds a flat, one-time service fee on top — no monthly charges — and your total is always shown before you pay.

Most South Dakota LLC filings are prepared and submitted within one business day. State approval time depends on South Dakota's current processing queue, typically ranging from a few business days to a few weeks, with expedited options available in many states.

Why form an LLC in South Dakota

South Dakota has no personal income tax, no corporate income tax and no franchise tax, so the only recurring state cost for an LLC is the $55 annual report. Formation costs $150 online through SOSEnterprise and is processed immediately.

South Dakota LLC at a glance

How much does it cost to start an LLC in South Dakota?

How to start an LLC in South Dakota: step by step

Here is exactly what forming a South Dakota LLC involves, whether you file it yourself or let Incofile handle the paperwork.

1. Choose and check your LLC name

   Pick a name that includes “LLC” or “Limited Liability Company” and is distinguishable from existing South Dakota businesses. Check it with our free business name search.

2. Appoint a registered agent

   Name a registered agent with a physical street address in South Dakota (not a PO box) who can accept legal papers during business hours. The agent must be a South Dakota resident with both a physical and a mailing address in the state, or a listed commercial agent. If you live outside South Dakota or want privacy, Incofile can act as your agent.

3. File the Articles of Organization

   File online through SOSEnterprise and pay $150 ($165 on paper). Online filings are processed immediately; paper filings take 1–3 business days.

4. Create an operating agreement

   South Dakota does not require you to file an operating agreement, but it records who owns the LLC, how profits are shared and how decisions are made. Banks commonly ask for it, and it helps protect your limited liability.

5. Get an EIN

   Apply to the IRS for your Employer Identification Number (EIN). You need it to open a business bank account, hire staff and file federal taxes. The IRS issues it free; non-US owners without an SSN apply by phone, fax or mail, and our Gold package handles it for you.

6. Register for taxes and local licences

   Apply for a sales tax licence from the South Dakota Department of Revenue if you sell taxable goods or services (4.2% state rate). There is no state business licence and no income tax registration.

7. File your annual report each year

   File the $55 annual report online by the first day of your anniversary month every year. A report not filed within two months of the due date is delinquent and costs $55 more, and continued non-filing can lead to administrative dissolution. From 2027, South Dakota lets you choose either your anniversary month or 31 January as the due date.

Let Incofile file my South Dakota LLC

What you need to form an LLC in South Dakota

• A business name that is available and meets South Dakota's naming rules (it must include “LLC” or “Limited Liability Company”).
• A registered agent with a physical address in South Dakota — Incofile can be your agent.
• Articles of Organization filed with the South Dakota state office — we prepare and submit these for you.
• An operating agreement and EIN to open a business bank account (included in our Gold and Platinum packages).
• Ongoing compliance — South Dakota's reports, taxes and registered agent rules (see below). We track the deadlines and remind you.

Operating agreement

An operating agreement sets out who owns the LLC, how profits are split, how decisions are made and what happens if a member leaves. South Dakota does not ask you to file it with the state, but banks usually want to see it, and without one the state's default rules apply. Incofile includes a customised operating agreement in the Gold and Platinum packages.

EIN (Employer Identification Number)

Your EIN is the federal tax ID for your LLC. You need it to open a business bank account, hire staff and file taxes. The IRS issues it free — online in minutes if you have a Social Security number, or by fax or mail (one to eight weeks) if you don't. Our Gold and Platinum packages include it, and it is also available as a separate service.

This is general information, not legal advice. If you're unsure which structure is right, compare LLC vs S-Corp vs C-Corp.

Keeping your South Dakota LLC compliant

Incofile clients get every South Dakota deadline tracked in their dashboard with email reminders — see registered agent service.