South Dakota LLC Formation

Created by FindLaw's team of attorney writers and editors.

If you're launching a business or hoping to expand an existing venture, you might be interested in starting a limited liability company (LLC). However, before you can take advantage of the personal liability protection and flow-through taxation that a limited liability company provides, you must complete the necessary tasks to create your LLC. Read on to learn about South Dakota LLC formation and how you can get your business off the ground in the Mount Rushmore State.

Forms for South Dakota LLC Formation

After you have completed the formation documents and filed them with the proper agency, you'll be well on your way to forming your South Dakota LLC. Using FindLaw's South Dakota LLC Formation Package can make the process go smoothly.

South Dakota LLC Formation at a Glance

Every jurisdiction has similar requirements, but LLC formation law is state specific. The chart below provides you with important takeaways for South Dakota LLC formation.

Statutes

South Dakota Codified Law 47-34A Uniform Limited Liability Company Act:

Name the LLC

The name must include the words "Limited Liability Company" or "Limited Company" or the approved abbreviations including: "LLC" or "L.L.C" or "LC" or "L.C."

The name must be different from businesses that are already registered with the state. Check with the Business Name Database for name availability.

You can register a name for 120 days by paying a fee and filing an application with the South Dakota Secretary of State by regular mail.

Select a Registered Agent

Every South Dakota LLC must have an agent for service of process purposes if the company is sued.

Requirements for the resident agent:

  • Physical street address in South Dakota; and
  • A South Dakota resident; or
  • A business entity authorized to do business in South Dakota.

File Articles of Organization

The LLC is formed when the Articles of Organization is filed with the Secretary of State. You must file (via postal mail) and pay the filing fee.

The Articles must include the following information:

  • The LLC name and address;
  • The registered agent's name and address;
  • Whether the LLC will be member-managed or manager-managed;
  • If it is manager-managed, then the manager's names and addresses; and
  • The name and addresses of the organizers;
  • The LLC's duration, if not perpetual.

Create an Operating Agreement

Although South Dakota doesn't require it, it's a good idea to create an operating agreement.

Comply with Tax Requirements

If your LLC has more than one member, then you must apply for an employer identification number (EIN).

If the LLC sells goods and collects sales tax, you must register with the South Dakota Department of Revenue (DOR).

Determine Necessary Business Licenses

You may have to obtain local and state business licenses, depending on the type of business and the location.

Note: State laws are always subject to change through the passage of new legislation, rulings in the higher courts (including federal decisions), ballot initiatives, and other means. While we strive to provide the most current information available, please consult an attorney or conduct your own legal research to verify the state law(s) you are researching.

South Dakota LLC Formation: Related Resources

Learn About South Dakota LLC Formation from an Attorney

After acquiring the necessary paperwork, forming a South Dakota LLC is relatively straight forward. But if you need help writing an operating agreement or have any other questions, legal help is available. Discuss South Dakota LLC formation with an experienced business organizations attorney who understands the law and can provide you with critical insight for your business.

Next Steps: Search for a Local Attorney

Contact a qualified attorney.