Start a Free LLC in South Dakota

How to Form a South Dakota LLC in 5 Steps

Form your LLC in South Dakota by picking a name that no other business is using in the state. Then you appoint a registered agent who stays available during normal business hours and receives your state paperwork. Next, you file your formation paperwork with the state, which formally creates your LLC.

After this step, you draft your operating agreement in writing to set the LLC's internal rules. The next step is to obtain an EIN from the IRS and open a business bank account. Finally, check whether your city, county, or industry requires any business licenses or permits before you begin operating.

If you don’t want to handle these filings on your own, you don’t have to. Swyft Filings is a business formation company; we prepare and file your Articles of Organization with the state for free. You only pay the state fee. Our services also include DBA filing, annual report filing, and compliance alerts. Let us walk you through the steps of forming an LLC in South Dakota in detail.

Step 1: Pick a Name for Your South Dakota LLC

The business name is the identity of a business. It goes on your Articles of Organization, your operating agreement, and every piece of business paperwork you file afterward, so it's worth getting right before you file anything. Swyft's business name generator can help you come up with a few options if you're stuck.

South Dakota has these naming rules to follow:

• Your name must include a legal designator: "Limited Liability Company," "LLC," "L.L.C.," "LC," or "L.C."

• Your chosen name must be unique and clearly distinguishable from any other domestic or foreign corporation, limited partnership, or LLC already registered with the state.

• Your name can't imply a connection to a government agency, and it can't suggest regulated services like banking or insurance unless your business actually holds the right license.

Once you have a name in mind, check that it's actually available. You can search existing South Dakota business names through the Business Information Search tool. Also, check if a business name is available for use in the State of South Dakota through the Business Name Availability portal.

If you want to know the search process in detail, read the South Dakota business entity search guide before you file.

Step 2: Appoint a South Dakota Registered Agent

Your agent must have a physical street address in South Dakota (a P.O. box doesn't count), be available at that address during normal business hours, and be either a South Dakota resident or a business entity authorized to operate in the state.

You'll list your registered agent's name and address directly on your Articles of Organization when you file. You can act as your own registered agent if you meet these requirements, or use a South Dakota registered agent service to keep your home address off the public record.

Step 3: File Your South Dakota Articles of Organization

You'll form your LLC by filing Articles of Organization with the South Dakota Secretary of State. The fee is $150 online or $165 by mail (mail includes a $15 paper-processing surcharge).

South Dakota gives you two ways to file:

• Online: File through the Secretary of State's online business filing portal. This is the faster, cheaper option, and it's what South Dakota recommends.
• By mail: Download and complete the Articles of Organization form, then mail it, along with payment, to the Secretary of State's office in Pierre.

To file, you'll need to have ready:

• Your LLC's name with a legal designator
• Your principal business street address and mailing address
• Your registered agent's name and South Dakota street address
• Your management structure (member-managed is the default; note it if you're manager-managed, along with each manager's name and address)
• Your LLC's duration (most LLCs choose perpetual)
• Your organizer's name, address, and signature

Step 4: Create an Operating Agreement

Once your LLC is filed, put your ownership and operating rules in writing. It decides the following things for you:

• How profits and losses will be split
• Who's responsible for day-to-day decisions
• Operating agreement amendment procedures
• How new members can join
• What happens if someone wants to leave
• How the LLC will be dissolved (if needed)

South Dakota doesn't require you to submit this document to the state, but you should still have one on file to protect your liability status and keep everyone on the same page.

You don't have to start from scratch. Either choose a free operating agreement template or let Swyft draft a custom agreement tailored to your business. For the complete walkthrough, see the South Dakota operating agreement guide.

Step 5: Get an EIN

The IRS issues a nine-digit Employer Identification Number (EIN) to businesses that need one for federal tax purposes, including hiring employees, opening a business bank account, and filing taxes. You can apply for an EIN directly on the IRS website and get it for free in minutes. The application asks for the following things:

• Your Social Security number or ITIN
• Your business name and any DBA names
• Your mailing address
• Entity details
• Your reason for applying

If you purchase one of our paid South Dakota LLC formation packages, we prepare and submit the EIN application for you. That means you don't have to handle the IRS process yourself.

What Are the Post-Formation Requirements for an LLC in South Dakota

File Your South Dakota LLC Annual Report

South Dakota requires every LLC to file an annual report to stay in good standing. It's due before the first day of your LLC's anniversary month each year, and the fee is $55 online or $70 by mail. If you miss the deadline, you'll be charged a $50 late fee, so it's worth marking your calendar. Swyft's annual report service can file it for you so you never miss the date.

Open a Business Bank Account for Your South Dakota LLC

Once you have your EIN, you're ready to open a business bank account in your LLC's name.

Most banks will ask you to bring:

• Your approved Articles of Organization
• Your EIN confirmation letter from the IRS
• A copy of your operating agreement, if the bank asks for one
• Government-issued photo ID for each owner opening the account
• Your LLC's business address and phone number

To get the account open:

1. Pick a bank. Compare monthly fees, minimum balance rules, and whether you want a bank with local branches or one that's online-only.
2. Bring your paperwork. Many banks let you start online, but some require you to finish the application in person or upload signed documents.
3. Make your opening deposit. Some banks set a minimum, so check the amount before you go.
4. Route everything through it. Once it's open, run all business income and expenses through this account, and avoid paying personal bills from it.

If your LLC has more than one member, the bank may also ask each member to sign a resolution stating who's authorized to open and manage the account.

Apply for a Business License in South Dakota

South Dakota doesn't issue one general statewide business license, so what you need depends on what you sell and where you're located.

1. Check if you need a sales tax license. If you sell taxable goods or services, apply for a sales tax license through the South Dakota Department of Revenue. You can do this online, and there's no fee to apply.

2. Check with your city or county. Some cities and counties require a local business license in addition to the state sales tax license. Contact your city or county clerk's office directly to find out what applies to your location.

3. Check for industry-specific licenses. Certain professions and industries, such as contracting or food service, require additional state-level licenses or permits before they can legally operate.

4. Keep your licenses current. Note any renewal dates so you don't lapse and risk fines or a disruption to your ability to operate.

See Swyft's South Dakota business license guide for a full breakdown of what applies to your business.

How Much Does an LLC Cost in South Dakota?

DIY vs. Swyft Filings: South Dakota LLC Formation Differences

Starting an LLC in South Dakota yourself is possible, but it requires time, research, and follow-up. Here’s how forming a South Dakota LLC on your own compares with using Swyft Filings:

*Disclaimer: This guide provides general information about forming an LLC in South Dakota and is not a substitute for legal, tax, or financial advice.*