Start a Free LLC in South Dakota
LLC Register forms your free South Dakota LLC, serves as your South Dakota registered agent and keeps your LLC in good standing. South Dakota charges $150 to file the Articles of Organization with the South Dakota Secretary of State.

South Dakota LLC
- South Dakota LLC Formation
- Free
- South Dakota LLC Name Search
- Free
- South Dakota Registered Agent
- $99 per year
- Annual Compliance
- Free
- South Dakota State Filing Fee
- $150
Transparent Cost Guide to Form a South Dakota LLC with LLC Register
Every fee, line by line. The state fee is passed through at cost; there is nothing else to add at checkout.
| Cost item | LLC Register fee | South Dakota state fee | Estimated total | One-time or annual |
|---|---|---|---|---|
South Dakota LLC name search | $0 | $0 | $0 | Free |
South Dakota LLC business name generator | $0 | $0 | $0 | Free |
South Dakota LLC formation (articles of organization) | $0 | $0 | $0 | Free |
South Dakota registered agent | $99 | $0 | $99 | Annual |
South Dakota LLC compliance (annual report) | $0 | $65 | $65 | Annual |
South Dakota state filing fee | $0 | $150 | $150 | One-time |
South Dakota LLC formation and annual compliance are included with the $99 annual registered agent service. You also pay the $150 state filing fee required by the South Dakota Secretary of State. That makes $249 in year one, and renewal is $99 per year, plus the $65 Annual Report fee paid to the state at cost.
Comprehensive 10-Step Guide to Form a South Dakota LLC
From the name search to your first annual report, in the order you will do them.
Step 1 — Choose a compliant South Dakota LLC name
Your South Dakota LLC name must include "limited liability company," "limited company" or an abbreviation such as "LLC," "L.L.C.," "LC" or "L.C." It must be distinguishable from other names on file with the Secretary of State. Check that your name is available with the free South Dakota Secretary of State business name search before you file.
Name reservation: for $25; the reservation lasts 120 days, and the same applicant must wait 60 days after it expires to reserve that name again
Step 2 — Select a registered agent in South Dakota
Every South Dakota LLC must name a registered agent to receive legal papers and state mail. Your registered agent must have an actual street address or rural route box number in South Dakota, a P.O. box alone is not enough, plus a separate mailing address if different. The agent can be a qualifying individual or a commercial registered agent listed with the Secretary of State. LLC Register's South Dakota registered agent service is $99 a year and includes LLC formation and annual report filing.
Required by the South Dakota Uniform Limited Liability Company Act, SDCL Title 47, Chapter 34A (registered agent rules are in SDCL Title 59, Chapter 11)
Step 3 — Decide how the South Dakota LLC will be managed
Member-managed LLCs are run by their owners; manager-managed LLCs appoint managers to run the business. You choose the structure when you file the Articles of Organization and set the details in your operating agreement.
Member-managed or manager-managed
Step 4 — File the Articles of Organization with the South Dakota Secretary of State
Submit the Articles of Organization and pay the $150 state filing fee. You can file online through SOSEnterprise, or by mailing the paper Articles of Organization for a $15 additional fee. The Secretary of State does not publish a processing time, and there is no paid expedite option. Filing online is the fastest route. We prepare and file it for you.
State fee: $150 · File online: SOSEnterprise Business Services
Step 5 — Create an LLC operating agreement
South Dakota does not require an operating agreement, and you never file one with the state. It governs the members' relations and the LLC's internal affairs. Ours is included and ready to sign.
Included with LLC Register
Step 6 — Obtain an EIN or FTIN
Get your federal Employer Identification Number from the IRS. It is free, and applying online gives you the number right away. You need it to hire employees, open a business bank account and file federal taxes; owners without a Social Security number apply with Form SS-4.
Free from the IRS · Form SS-4
Step 7 — Open a business banking account
Keep business and personal money apart to protect your limited liability. Banks usually ask for your filed Articles of Organization, your EIN and your operating agreement.
Bring your formation document, EIN and operating agreement
Step 8 — Register for South Dakota taxes, permits and licenses
If you sell taxable goods or services, register for a Sales Tax License with the Department of Revenue through its online Tax License Application. There is no fee. Before you hire, register with the Department of Labor and Regulation's Division of Reemployment Assistance for unemployment insurance. South Dakota has no state income tax, so there is no state withholding to register for. Check with your city and county for local business licenses.
Tax agency: South Dakota Department of Revenue
Step 9 — Consider other LLC documents
Such as a banking resolution, a Certificate of Good Standing / Existence ($20), or foreign qualification if you operate in other states. If you use a brand name other than your LLC's legal name, file a Fictitious (DBA) Business Name Registration.
Certificate: $20 · DBA: $10
Step 10 — Set reminders for annual compliance
South Dakota requires the Annual Report every year. It is due by January 31 every year, no matter when your LLC was formed (this changes January 1, 2027, when you can instead choose your formation-anniversary month). The first one is due by January 31 of the year after your LLC was authorized to transact business. We track the deadline and file it on time while your agent service is active.
State fee: $65 · Annual
South Dakota LLC Formation Facts Table
The official numbers, names and links for a South Dakota LLC, each checked against the state agency.
South Dakota LLC filing agency | South Dakota Secretary of State, Business Services |
|---|---|
South Dakota LLC formation document | Articles of Organization |
South Dakota LLC filing fee | $150 |
Standard processing time | The Secretary of State does not publish a processing time, and there is no paid expedite option. Filing online is the fastest route. |
Expedited filing | Not offered |
South Dakota online LLC filing | sosenterprise.sd.gov/BusinessServices/Business/RegistrationInstr.aspx |
South Dakota LLC name search | swyftfilings.com/business-name-generator |
Name reservation | Available for $25; the reservation lasts 120 days, and the same applicant must wait 60 days after it expires to reserve that name again |
South Dakota registered agent required | Yes |
Registered agent address rule | Your registered agent must have an actual street address or rural route box number in South Dakota, a P.O. box alone is not enough, plus a separate mailing address if different. The agent can be a qualifying individual or a commercial registered agent listed with the Secretary of State. |
Can you be your own registered agent | Yes |
South Dakota registered agent service | /registered-agent/south-dakota |
Annual or biennial filing | Annual Report, every year |
Annual report state fee | $65 |
First compliance deadline | By January 31 of the year after your LLC was authorized to transact business |
Recurring due date | By January 31 every year, no matter when your LLC was formed (this changes January 1, 2027, when you can instead choose your formation-anniversary month) |
Late filing penalty | A delinquent annual report adds a $50 fee on top of the regular filing fee. |
Annual Report filing | sosenterprise.sd.gov/BusinessServices/Business/AnnualReportInstr.aspx |
Franchise or privilege tax | South Dakota has no franchise tax on ordinary LLCs, no corporate income tax and no personal income tax. Its only franchise tax, the Bank Franchise Tax, applies solely to banks and other financial institutions. |
State income tax on LLC profits | South Dakota has no personal or corporate income tax, so an LLC's profits are not taxed at the state level no matter how the LLC is classified for federal tax purposes. |
Sales tax permit | Sales Tax License, issued by South Dakota Department of Revenue |
Operating agreement required by law | No |
Newspaper publication required | No |
Series LLC allowed | Yes |
Professional LLC (PLLC) allowed | Yes |
Certificate of good standing fee | $20 (Certificate of Good Standing / Existence) |
Foreign LLC registration fee | $750 (Certificate of Authority, Foreign Limited Liability Company Application) |
Amendment fee | $60 (Amended (or Restated) Articles of Organization) |
Dissolution fee | $10 (Articles of Termination) |
DBA (assumed name) filing | $10 (Fictitious (DBA) Business Name Registration), filed with South Dakota Secretary of State |
South Dakota LLC law | sdlegislature.gov/Statutes/47-34A |
Free trademark search | trademarkengine.com/free-trademark-search |
Trademark registration | trademarkengine.com |
Virtual mailbox | snapmailbox.com |
Apply for an EIN (IRS) | irs.gov/businesses/small-businesses-self-employed/get-an-employer-identification-number |
Author: LLC RegisterLast reviewed 9/30/2026
South Dakota agency: South Dakota Secretary of StateLast reviewed 9/30/2026
Legal Requirements to Start a South Dakota LLC
What South Dakota law requires of every LLC, with the rule and the agency that enforces it.
A distinguishable LLC name
Your South Dakota LLC name must include "limited liability company," "limited company" or an abbreviation such as "LLC," "L.L.C.," "LC" or "L.C." It must be distinguishable from other names on file with the Secretary of State. Search the name for free with the South Dakota business name search before you file. You can reserve a name for $25; the reservation lasts 120 days, and the same applicant must wait 60 days after it expires to reserve that name again. The rules come from the South Dakota Uniform Limited Liability Company Act, SDCL Title 47, Chapter 34A (registered agent rules are in SDCL Title 59, Chapter 11).
A South Dakota registered agent
Every South Dakota LLC must appoint and keep a registered agent in South Dakota. Your registered agent must have an actual street address or rural route box number in South Dakota, a P.O. box alone is not enough, plus a separate mailing address if different. The agent can be a qualifying individual or a commercial registered agent listed with the Secretary of State. To change agents, file the Statement of Change of Registered Agent and/or Registered Office ($10). LLC Register's South Dakota registered agent service is $99 a year and includes LLC formation and annual report filing.
The Articles of Organization
Your LLC exists once the South Dakota Secretary of State accepts your Articles of Organization and the $150 filing fee. You can file online through SOSEnterprise, or by mailing the paper Articles of Organization for a $15 additional fee. The Secretary of State does not publish a processing time, and there is no paid expedite option. Filing online is the fastest route.
An operating agreement
South Dakota does not require an operating agreement, and you never file one with the state. It governs the members' relations and the LLC's internal affairs. Even where it is optional, a written operating agreement sets ownership, voting, profit splits and what happens when a member leaves, and banks often ask for one.
Annual Report
South Dakota requires every LLC to file the Annual Report every year for $65. It is due by January 31 every year, no matter when your LLC was formed (this changes January 1, 2027, when you can instead choose your formation-anniversary month). The first one is due by January 31 of the year after your LLC was authorized to transact business. A delinquent annual report adds a $50 fee on top of the regular filing fee.
State taxes and licenses
South Dakota has no franchise tax on ordinary LLCs, no corporate income tax and no personal income tax. Its only franchise tax, the Bank Franchise Tax, applies solely to banks and other financial institutions. South Dakota has no personal or corporate income tax, so an LLC's profits are not taxed at the state level no matter how the LLC is classified for federal tax purposes. If you sell taxable goods or services, register for a Sales Tax License with the Department of Revenue through its online Tax License Application. There is no fee. See the South Dakota Department of Revenue for registrations.
South Dakota LLC Company Cost Comparison
Published prices for forming and keeping a South Dakota LLC, compared line by line.
| What you pay for | LLC Register | LegalZoom | ZenBusiness |
|---|---|---|---|
LLC formation service | $0 | $0 | $0 |
South Dakota filing fee | $150 | $150 | $150 |
Registered agent, first year | $99 | $249 | $99 |
Annual report filing | $0 | $99 | $100 |
First-year total | $99 + state fee | $249 + state fee | $99 + state fee |
Registered agent renewal | $99 per year | $249 per year | $199 per year |
Competitor prices are for each company's lowest-priced LLC package, as published on its own website on September 29, 2026. The South Dakota state fee is extra with every provider. Prices change; check each provider before you buy.
Why Form Your South Dakota LLC with LLC Register
One price, the whole bill up front, and your LLC kept in good standing every year.
$99 a year. That is the whole price.
The same $99 at renewal, every year. No tiers to compare and nothing pre-checked at checkout.
Formation included
We prepare and file your Articles of Organization with the South Dakota Secretary of State. You pay only the $150 state fee, at cost.
A South Dakota registered agent
A physical South Dakota address for legal and state mail, with scans sent to you the same day.
Your annual compliance, handled
We track the South Dakota deadlines and file your Annual Report on time while your agent service is active.
Every fee shown before you pay
The cost guide above is the bill. State fees are passed through at cost and never marked up.
Support by email
Real people answer your questions by email, before and after your South Dakota LLC is formed.
Important South Dakota LLC Resources and Links
Official South Dakota offices, forms and data in one place. Every link goes to the source.
State government offices
Filing, forms and records
- Online LLC filingsosenterprise.sd.gov
- Business name searchsosenterprise.sd.gov
- Articles of Organization formsdsos.gov
- Annual Report filingsosenterprise.sd.gov
- Foreign LLC registration (Certificate of Authority, Foreign Limited Liability Company Application)sdsos.gov
- DBA (Fictitious (DBA) Business Name Registration)sosenterprise.sd.gov
- South Dakota Uniform Limited Liability Company Act, SDCL Title 47, Chapter 34A (registered agent rules are in SDCL Title 59, Chapter 11)sdlegislature.gov
Taxes, permits and licenses
South Dakota business data and help
- Population and demographicsU.S. Census Bureau QuickFacts, South Dakota
- Small business statisticsSBA Office of Advocacy, 2025 state small business profiles
- South Dakota Small Business Development Center (Beacom School of Business, University of South Dakota)usd.edu
- U.S. Small Business Administrationsba.gov
- SBA local assistanceFind SBA offices and advisors near you in South Dakota
South Dakota LLC FAQs
Short questions, direct answers about forming and running an LLC in South Dakota.
How much does it cost to start an LLC in South Dakota?
Per the South Dakota Secretary of State, as of September 2026, South Dakota charges $150 to file the Articles of Organization. After that, the Annual Report costs $65 every year. With LLC Register, formation is included in the $99-a-year South Dakota registered agent service, so year one costs $249.
How long does it take to form an LLC in South Dakota?
The Secretary of State does not publish a processing time, and there is no paid expedite option. Filing online is the fastest route. South Dakota does not offer paid expedited processing for LLC formations. Your LLC exists once the state accepts your filing.
How do I start an LLC in South Dakota?
To start an LLC in South Dakota, choose an available name, appoint a South Dakota registered agent, and file the Articles of Organization with the South Dakota Secretary of State for $150. Then sign an operating agreement, get a free EIN from the IRS, open a business bank account and register for any state taxes. LLC Register files it for you as part of the $99-a-year registered agent service.
Can I form an LLC online in South Dakota?
Yes. You can file online through SOSEnterprise, or by mailing the paper Articles of Organization for a $15 additional fee. The Articles of Organization costs $150.
What is the South Dakota LLC formation document called?
In South Dakota you form an LLC by filing the Articles of Organization with the South Dakota Secretary of State. Other states call this document the articles of organization or the certificate of formation. The filing fee is $150.
Is there an expedited LLC filing option in South Dakota?
No. South Dakota does not offer paid expedited processing for LLC formations. The Secretary of State does not publish a processing time, and there is no paid expedite option. Filing online is the fastest route.
How do I do a South Dakota LLC name search?
Use the South Dakota Secretary of State's free online business name search to check whether your LLC name is available. Your South Dakota LLC name must include "limited liability company," "limited company" or an abbreviation such as "LLC," "L.L.C.," "LC" or "L.C." It must be distinguishable from other names on file with the Secretary of State.
What are the South Dakota LLC name requirements?
Your South Dakota LLC name must include "limited liability company," "limited company" or an abbreviation such as "LLC," "L.L.C.," "LC" or "L.C." It must be distinguishable from other names on file with the Secretary of State. The rules are set by the South Dakota Uniform Limited Liability Company Act, SDCL Title 47, Chapter 34A (registered agent rules are in SDCL Title 59, Chapter 11).
Can I reserve an LLC name in South Dakota?
Yes. You can reserve a name for $25; the reservation lasts 120 days, and the same applicant must wait 60 days after it expires to reserve that name again. A reservation is optional; filing the formation document also secures the name.
Do I need a registered agent for my South Dakota LLC?
Yes. Every South Dakota LLC must have a registered agent. Your registered agent must have an actual street address or rural route box number in South Dakota, a P.O. box alone is not enough, plus a separate mailing address if different. The agent can be a qualifying individual or a commercial registered agent listed with the Secretary of State.
Can I be my own registered agent in South Dakota?
Yes. A member or manager with a qualifying South Dakota street address can serve as the LLC's own registered agent. Your address becomes public record, and someone must be there during business hours to accept legal papers.
Can I use a PO box for my South Dakota LLC?
Not as your registered agent's address. Your registered agent must have an actual street address or rural route box number in South Dakota, a P.O. box alone is not enough, plus a separate mailing address if different. The agent can be a qualifying individual or a commercial registered agent listed with the Secretary of State. A PO box can usually serve as a mailing address, but the registered agent needs a physical address in South Dakota.
How do I change my registered agent in South Dakota?
File the Statement of Change of Registered Agent and/or Registered Office with the South Dakota Secretary of State. The fee is $10.
How much does a registered agent cost in South Dakota?
Serving as your own South Dakota registered agent is free if you qualify. Commercial registered agents charge a yearly fee. LLC Register's South Dakota registered agent service is $99 a year and includes LLC formation and annual report filing.
Does South Dakota require an annual report for LLCs?
Yes. South Dakota LLCs must file the Annual Report every year. The state fee is $65.
When is the South Dakota LLC annual report due?
The Annual Report is due by January 31 every year, no matter when your LLC was formed (this changes January 1, 2027, when you can instead choose your formation-anniversary month). Your first one is due by January 31 of the year after your LLC was authorized to transact business. It is filed with the South Dakota Secretary of State.
How much is the South Dakota LLC annual report fee?
Per the South Dakota Secretary of State, as of September 2026, the Annual Report state fee is $65. It is due by January 31 every year, no matter when your LLC was formed (this changes January 1, 2027, when you can instead choose your formation-anniversary month). LLC Register files it for you at no extra service fee while your registered agent service is active.
What happens if I miss the South Dakota annual report deadline?
A delinquent annual report adds a $50 fee on top of the regular filing fee. File as soon as possible to keep your LLC in good standing.
Does South Dakota have a franchise tax for LLCs?
South Dakota has no franchise tax on ordinary LLCs, no corporate income tax and no personal income tax. Its only franchise tax, the Bank Franchise Tax, applies solely to banks and other financial institutions.
How are LLCs taxed in South Dakota?
South Dakota has no personal or corporate income tax, so an LLC's profits are not taxed at the state level no matter how the LLC is classified for federal tax purposes. Federally, a single-member LLC is taxed like a sole proprietorship and a multi-member LLC like a partnership, unless it elects to be taxed as a corporation.
Do I need a sales tax permit for my South Dakota LLC?
If you sell taxable goods or services, register for a Sales Tax License with the Department of Revenue through its online Tax License Application. There is no fee.
How do I register my South Dakota LLC as an employer?
Before you hire, register with the Department of Labor and Regulation's Division of Reemployment Assistance for unemployment insurance. South Dakota has no state income tax, so there is no state withholding to register for. You also need an EIN from the IRS before you run payroll.
Do I need a business license for my South Dakota LLC?
It depends on your industry and location: South Dakota regulates some professions and activities through state licenses, and many cities and counties require local business licenses. Start with the South Dakota Secretary of State, Business Services.
Do I need an operating agreement for a South Dakota LLC?
South Dakota does not require an operating agreement, and you never file one with the state. It governs the members' relations and the LLC's internal affairs. LLC Register includes an operating agreement with every South Dakota LLC it forms.
Do I need an EIN for my South Dakota LLC?
You need an EIN if your LLC has employees or more than one member, and most banks ask for one to open a business account. A single-member LLC without employees can use the owner's Social Security number for federal taxes, but an EIN keeps it off business paperwork.
How do I get an EIN for a South Dakota LLC?
Apply for free on the IRS website once the state has approved your LLC; online applicants receive the EIN immediately. Owners without a Social Security number can apply with Form SS-4 by fax or mail.
Can a nonresident form an LLC in South Dakota?
Yes. You do not have to live in South Dakota or be a U.S. citizen to form a South Dakota LLC. You do need a registered agent with a physical address in South Dakota. Non-U.S. owners without a Social Security number apply for an EIN with IRS Form SS-4.
Can I form a single-member LLC in South Dakota?
Yes. South Dakota allows an LLC with a single owner. By default the IRS taxes a single-member LLC like a sole proprietorship, reported on the owner's personal return.
Does South Dakota allow series LLCs?
Yes. South Dakota's LLC Act expressly allows series LLCs, each with its own assets and liabilities under one master LLC, and an individual series files no separate annual report.
Can licensed professionals form a PLLC in South Dakota?
Yes. A South Dakota LLC can be organized as a professional entity only by authorized health-care licensees under Title 36; other licensed professions generally use a plain LLC or a separate professional-entity chapter.
Does South Dakota require LLCs to publish a formation notice?
No. South Dakota does not require newspaper publication to form an LLC.
How do I get a certificate of good standing in South Dakota?
Order a Certificate of Good Standing / Existence from the South Dakota Secretary of State for $20. Banks, lenders and other states often ask for one as proof your LLC is current with the state.
How do I register a foreign LLC in South Dakota?
An LLC formed in another state registers to do business in South Dakota by filing the Certificate of Authority, Foreign Limited Liability Company Application with the South Dakota Secretary of State. The fee is $750, and the LLC needs a South Dakota registered agent.
How do I amend my South Dakota LLC?
File the Amended (or Restated) Articles of Organization with the South Dakota Secretary of State for $60. Amend when you change your LLC's name or other information in the formation document.
How do I dissolve an LLC in South Dakota?
File the Articles of Termination with the South Dakota Secretary of State for $10. Before you file, wind up the business: pay debts, close tax accounts and distribute what is left to the members.
How do I file a DBA for my South Dakota LLC?
File a Fictitious (DBA) Business Name Registration with the Secretary of State online for $10. A DBA lets your LLC trade under another name without forming a new company.
Can my South Dakota LLC be taxed as an S corporation?
Yes. An eligible LLC can elect S corporation tax status by filing IRS Form 2553. The election can reduce self-employment tax once profits are high enough to pay yourself a reasonable salary. South Dakota has no personal or corporate income tax, so an LLC's profits are not taxed at the state level no matter how the LLC is classified for federal tax purposes.
What are the benefits of forming an LLC in South Dakota?
An LLC separates your personal assets from business debts and lawsuits, keeps pass-through taxation, and needs less paperwork than a corporation. In South Dakota it costs $150 to form and the Annual Report is $65 every year.
LLC vs sole proprietorship in South Dakota: which is better?
A sole proprietorship costs nothing to start, but you are personally liable for the business's debts. A South Dakota LLC costs $150 to form and protects your personal assets, with the same pass-through taxes by default.
Should I form my LLC in Delaware or Wyoming instead of South Dakota?
Usually not if your business operates in South Dakota. An out-of-state LLC doing business here must also register as a foreign LLC in South Dakota for $750 and keep a South Dakota registered agent, so you pay two states' fees.
Why do people form LLCs in South Dakota from other states?
South Dakota has no personal income tax and no general corporate income tax, so LLC profits pass to members untaxed at the state level. South Dakota is one of the few states with an explicit series LLC statute, letting one LLC hold multiple series with separate assets and liabilities.
Does LLC Register charge a separate fee to form a South Dakota LLC?
No. Formation is included in the $99-a-year South Dakota registered agent service. The state still charges its $150 filing fee, which we pass through at cost.
What does LLC Register include with a South Dakota LLC?
For $99 a year plus the $150 state fee: South Dakota LLC formation in year one, a South Dakota registered agent, an operating agreement, and filing of your Annual Report every year. Renewal is $99 a year. State fees are passed through at cost.
Does my South Dakota LLC need to file a BOI report with FinCEN?
No. FinCEN has exempted companies created in the United States from beneficial ownership information (BOI) reporting. Only foreign companies registered to do business in a U.S. state still have to report.
Which state agency handles LLC filings in South Dakota?
The South Dakota Secretary of State, Business Services, handles LLC formations, amendments and annual filings. Its office is at 500 E Capitol Ave, Pierre, SD 57501.
Do I need a separate bank account for my South Dakota LLC?
Yes, you should. Mixing business and personal money can weaken the liability protection your LLC gives you. Banks usually ask for your filed Articles of Organization, your EIN and your operating agreement.
Complete South Dakota LLC Glossary
The terms, documents and filings you will meet when forming a South Dakota LLC.
Annual report
A recurring filing that keeps your LLC in good standing with the state. In South Dakota it is the Annual Report, due by January 31 every year, no matter when your LLC was formed (this changes January 1, 2027, when you can instead choose your formation-anniversary month).
Articles of Organization
The document filed with the state to create an LLC. Some states call it a Certificate of Formation; in South Dakota it is the Articles of Organization.
Assumed name (DBA)
A trade name your LLC uses instead of its legal name. In South Dakota you file a Fictitious (DBA) Business Name Registration.
Banking resolution
A document authorizing who may open and run the LLC's bank accounts.
Certificate of good standing
Proof from the state that your LLC exists and is current on its filings and fees. In South Dakota it is the Certificate of Good Standing / Existence.
Dissolution
Formally closing an LLC with the state. In South Dakota you file the Articles of Termination.
EIN
Employer Identification Number: the nine-digit federal tax ID the IRS issues to a business.
Foreign qualification
Registering an LLC formed in another state so it can do business in South Dakota, through the Certificate of Authority, Foreign Limited Liability Company Application.
Franchise tax
A state tax some states charge for the privilege of doing business there. South Dakota has no franchise tax on ordinary LLCs, no corporate income tax and no personal income tax. Its only franchise tax, the Bank Franchise Tax, applies solely to banks and other financial institutions.
Limited liability
The legal protection that keeps the owners' personal assets separate from the LLC's debts and lawsuits.
Manager-managed LLC
An LLC run by appointed managers rather than by all of its members.
Member
An owner of an LLC. An LLC can have one member or many, and members can be people or companies.
Member-managed LLC
An LLC run directly by its owners, the members.
Operating agreement
The internal contract that sets out an LLC's ownership, voting, profits and what happens when a member leaves.
Pass-through taxation
The default federal tax treatment of an LLC: profits pass to the owners' personal returns instead of being taxed at the company level.
Professional LLC (PLLC)
An LLC for licensed professionals such as doctors, lawyers or accountants. Available in South Dakota.
Registered agent
The person or company with a physical South Dakota address named to receive legal papers and state mail for the LLC.
S corporation election
A federal tax election, made on IRS Form 2553, that lets an eligible LLC be taxed as an S corporation.
Series LLC
An LLC divided into separate series, each with its own assets and liabilities. Allowed in South Dakota.
Single-member LLC
An LLC with one owner. By default the IRS taxes it like a sole proprietorship.
South Dakota Uniform Limited Liability Company Act, SDCL Title 47, Chapter 34A (registered agent rules are in SDCL Title 59, Chapter 11)
The South Dakota law that governs how LLCs are formed, run and dissolved.
