South Dakota LLC Requirements

Updated for 2026 · Official Secretary of State Website

South Dakota has no state income tax, making it attractive for LLC owners seeking to minimize tax burden. The $150 filing fee is above average, and the $50 annual report is near the median. South Dakota is also known for its strong trust and asset protection laws, which complement its LLC-friendly business environment.

Filing Fee

$150

One-time state fee

Annual Fee

$50

Per year

Processing

Immediate to 2 business days

Online filing

Deadline

First day of anniversary month

Annual report due

Average Cost

South Dakota's $150 filing fee is above average, and the $50 annual report is near the median. The absence of state income tax can offset these costs for many LLC owners.

Notable Facts About South Dakota LLCs

South Dakota has no state income tax, no corporate income tax, and no personal property tax
The state is known for exceptionally strong trust and asset protection laws
South Dakota's annual report is due on the first day of your anniversary month, not the last
The state processes online filings immediately or within 2 business days

Tax Information for South Dakota LLCs

South Dakota has no state income tax, no corporate income tax, and no personal property tax. LLCs pay no state-level tax on business profits. The state has a 4.5% sales tax plus local additions. South Dakota's tax-free environment makes it popular for holding companies and trusts.

Formation Steps

1

Choose a Name for Your LLC
Select a unique business name that complies with South Dakota naming requirements. The name must include "LLC" or "Limited Liability Company" and cannot be the same as an existing registered business in South Dakota.
2

Appoint a Registered Agent
Designate a registered agent with a physical address in South Dakota who can receive legal documents and official correspondence on behalf of your LLC.
3

File Articles of Organization
Submit your Articles of Organization (also called a Certificate of Formation in some states) to the South Dakota Secretary of State. This is the official document that creates your LLC.
4

Create an Operating Agreement
Draft an operating agreement that outlines ownership percentages, member roles, profit distribution, and management structure of your LLC. While not always legally required, it is strongly recommended.
5

Get an EIN from the IRS
Apply for a free Employer Identification Number (EIN) from the IRS. You'll need this for opening a business bank account, hiring employees, and filing taxes.
6

Open a Business Bank Account
Open a dedicated business bank account to keep your personal and business finances separate. This helps maintain your LLC's liability protection.
7

File Annual Reports
South Dakota requires periodic reports due by First day of anniversary month. The filing fee is $50. Mark your calendar to avoid late fees or administrative dissolution.

Visit Official SOS Website

Annual Report Details

Fee: $50

Deadline: First day of anniversary month

Annual report due by the first day of the month in which the LLC was originally formed. $50 late fee for delinquent reports.

$50 online (increased to $55 as of July 2025), $65 by mail.

Need a Registered Agent in South Dakota?

Every South Dakota LLC must have a registered agent with a physical address in the state. A registered agent service ensures you never miss important legal documents or compliance deadlines.

Compare Registered Agent Services

Frequently Asked Questions

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

The state filing fee to form an LLC in South Dakota is $150 for the Articles of Organization. This cost is near the national average compared to other states. Additional costs may include a registered agent service ($50-$300/year) and an operating agreement if you hire an attorney.

What is the annual cost of an LLC in South Dakota?

South Dakota charges $50 for its periodic reporting requirement, due First day of anniversary month. $50 online (increased to $55 as of July 2025), $65 by mail. South Dakota's $150 filing fee is above average, and the $50 annual report is near the median. The absence of state income tax can offset these costs for many LLC owners.

How long does it take to form an LLC in South Dakota?

Online filing in South Dakota typically takes Immediate to 2 business days. You'll need to file Articles of Organization with the state. Processing times may vary based on filing volume and the time of year.

Do I need a registered agent in South Dakota?

Yes, South Dakota requires every LLC to have a registered agent with a physical street address in the state. The registered agent receives legal documents, tax notices, and official government correspondence on behalf of your LLC.

What taxes does a South Dakota LLC pay?

Does South Dakota require an operating agreement for LLCs?

While not all states legally require an operating agreement, it is strongly recommended for every LLC in South Dakota. An operating agreement defines ownership structure, member roles, and how the business will be managed. Without one, your LLC will be governed by South Dakota's default LLC laws.