Starting a business in South Dakota Checklist

Check business name availability with the South Dakota Secretary of State

Do a name search here: http://sdsos.gov/Business/Search.aspx

A corporate name must contain the term, corporation, incorporated, company, or limited, or the abbreviation, corp., inc., co., or ltd., or terms or abbreviations of like import in another language. A corporate name may not contain language stating or implying that the corporation is organized for a purpose other than that permitted by § 47-1A-301 and its articles of incorporation.

The name must contain, limited liability company, or limited company, or the abbreviation, L.L.C., LLC, L.C., or LC. Limited may be abbreviated as Ltd. and company may be abbreviated as Co. The name also must be distinguishable from the name of other businesses registered in South Dakota. 

South Dakota Secretary of State

Secretary of State Office
Business Services
500 E Capitol Ave
Pierre, SD 57501
P: (605)773-4845

File paperwork to create your business

Mail your Articles of Incorporation or Articles of Organization to the state. There is $150 filing fee. Normal processing takes 3-5 business days. Next day processing is available for an extra $50.

Information to include in your South Dakota business’ formation documents:

-Business name

-Number of shares authorized (corporations only)

-Registered agent names and addresses

-Incorporator/organizer names and addresses

-Signature, name, title of signing officer/organizer

-Initial designated office address (LLCs only)

-Liabilities of members (LLCs only)

-If manager-managed, the names and addresses of each manager (LLCs only)

You can incorporate in South Dakota with Northwest Registered Agent if you don’t want to file your business’ legal formation documents on your own.

Business Services

Secretary of State Office
500 E Capitol Ave
Pierre, SD 57501
P: (605)773-4845
openforbiz@state.sd.us
http://sdsos.gov/content/viewcontent.aspx?cat=corporations&pg=/corporations/corporations.shtm

Register with the Department of Revenue

If you sell goods, you’ll need to apply for a sales tax permit. Forms are available on the Department of Revenue website.

Sales Tax:

South Dakota has a 4% state sales tax.

Income Tax:

South Dakota does not have corporate or individual income tax.

Department of Revenue

Department of Revenue
Attn: Business Tax
445 East Capitol Ave.
Pierre, SD, 57501-3185
http://www.state.sd.us/drr2/businesstax/bustax.htm

Get a business license

There is no general state business license but you may need a business license based on your location or occupation. Always check with your city and county government for details.

Any other registration requirements?

City of Sioux Falls

Business Licenses are issued by multiple agencies including the City Attorney and the Police Department. For a list of licenses see the city’s website http://www.siouxfalls.org/~/media/Documents/business/licensing/business_licenses_by_department-3-22-13.pdf. For more information, contact the Sioux Falls Licensing Specialist.

City of Rapid City

Some businesses need a business license from Rapid City. You can see a list of businesses requiring a city license and download license applications online at http://www.rcgov.org/Finance/forms-and-applications.html

Local License Info

City of Sioux Falls

Licensing Specialist
City of Sioux Falls
224 West Ninth Street
Sioux Falls SD 57104
P: (605) 367-8082

City of Rapid City

Finance Department
300 Sixth Street
Rapid City, SD 57701
P: (605) 394-4143
F: (605) 394-2232

Collect and Charge Sales Tax

Do I need to collect South Dakota sales tax?

If you sell goods in South Dakota, you will need to apply for a state sales tax permit.

What is the South Dakota sales tax rate?

South Dakota has a 4% state sales tax.

How do I register for South Dakota sales tax?

You can register for sales tax by applying for a business tax license online at https://apps.sd.gov/applications/rv23cedar/main/main.aspx

How much does a sales tax permit cost?

No fee to register.

Department of Revenue

Department of Revenue
Attn: Business Tax
445 East Capitol Ave.
Pierre, SD, 57501-3185
1-800-829-9188
bustax@state.sd.us
http://www.state.sd.us/drr2/businesstax/bustax.htm