Starting a business in South Dakota Checklist
Check business name availability with the South Dakota Secretary of StateDo 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 StateSecretary of State Office |
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File paperwork to create your businessMail 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 ServicesSecretary of State Office |
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Register with the Department of RevenueIf 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 RevenueDepartment of Revenue
Attn: Business Tax 445 East Capitol Ave. Pierre, SD, 57501-3185 http://www.state.sd.us/drr2/businesstax/bustax.htm |
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Get a business licenseThere 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 FallsBusiness 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 CitySome 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 InfoCity of Sioux FallsLicensing Specialist City of Rapid CityFinance Department |
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Collect and Charge Sales TaxDo 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 RevenueDepartment of Revenue |