South Dakota Corporation

You can get an EIN directly from the IRS. The application is free, and most businesses can apply online. However, if you don’t have a social security number, you’ll need to submit a paper application form. Can’t bear to fill out yet another application? Hire Northwest to get your EIN for you. Just add on EIN service during checkout when you sign up for our incorporation service.

Corporate bylaws cover basic policies and procedures for issues such as company finances and management. Bylaws should cover a range of topics, answering key questions like those below:

• Meetings: When and where will meetings for shareholders and directors be held? How many attendees are required to transact business? What are the procedures for voting or proxy voting? How do you call a special meeting? What actions can be taken without a meeting?

• Stock: How are stock certificates issued and transferred? How is voting affected by issues such as corporate stock owners or fractional shares?

• Directors and officers: How many directors must there be? Which officer positions are required? What powers do they have? How do you fill a vacancy or remove a director or officer?

• Finances: What are the procedures for retaining profits, issuing dividends, and paying bills? Who can withdraw money from the corporate bank account or sign checks?

• Records: Where is the corporate book to be kept? What information will be maintained? How are requests for review or access honored? Can records or copies be kept or distributed digitally?

• Amendments and emergencies: Who can amend bylaws and how? Can emergency bylaws be adopted in the case of disaster?

South Dakota bylaws can make other provisions as well, assuming additions are in accordance with state law. For example, South Dakota state law does not require a corporation’s board of directors to give notice of the date, time, place, or purpose of a meeting. However, SD Codified L § 47-1A-822 (2019) states that a South Dakota corporation’s bylaws can require the corporation’s board of directors to give notice before holding a meeting and dictate the specifics of that notice.

Creating bylaws can be overwhelming—where do you start? Northwest can help. We give you free corporate bylaws when you hire us to form your South Dakota corporation. We know what kinds of topics and questions corporations need to address, and we’ve spent years refining and improving our forms. We offer many other free corporate forms as well, including templates for resolutions and meeting minutes.

$50—if you file online. If you choose to file through the mail, the Annual Report costs $65 to file.

The filing is due on the first day of your anniversary month (the month you first incorporated). For example, if you formed your business on April 17th, you’re required to file by April 1st.each year. If you do not file your Annual Report in time, South Dakota will assess a $50 late fee for failing to file an annual report and your business will no longer be in good standing.

These filings can be easy to forget—which is why we send our clients automatic reminders for your South Dakota Annual Report filing. Or better yet, let us file for you. With our business renewal service, we can complete and submit your annual report for you for $100 plus the state fee.

There is no corporate income tax! There is also no personal income tax, and if you’re corporation is not a financial institution, you don’t need to worry about paying corporate franchise taxes either.

Even sales tax is pretty low. The state rate is 4.5%. However, cities can add on their own local sales taxes. In most major cities (Sioux Falls, Rapid City, Aberdeen, Brookings, etc.), the total sales tax rate is 6.5%.

Yes, if your corporation has a physical presence business in South Dakota, you’re required to register with the South Dakota Department of Revenue and apply for a South Dakota Tax License. Even without a physical presence, you’ll still need to register if you have more than $100K in gross revenue from sales in the state or 200+ transactions for sales delivered in the state. You can register via the Department of Revenue’s website. You’ll need your EIN before you can register.

$150 if you file online. The state’s trying to get everyone on the online filing train, so if you submit paper Articles of Incorporation, you’ll have to shell out an extra $15.

Hire us for a one-time fee of $375. This includes state fees, a full year of registered agent service, a business address, and all the forms you need to open a corporate bank account.

If you file online, your articles are processed immediately and you can print out your approval certificate right away. If you absolutely have to, you can mail your filing. On the plus side, the paper form is a bit easier to fill out—but it costs $15 more AND takes longer to process.

The Mount Rushmore State doesn’t have a general business license requirement. However, nearly all businesses will need a South Dakota Tax License. The license covers sales, uses, manufacturing and specialty taxes like alcohol and tobacco—basically, if you make or sell anything, you’ll probably need a tax license.

Some cities and counties have additional licensing requirements, typically for specific business activities. For instance, auctioneers and roller rinks require a city business license in Sioux Falls.

For some license applications you may need an EIN or a certified copy of your Articles of Incorporation. At Northwest, we can streamline the process and get these for you—simply add on these items during checkout.

A corporation formed outside of South Dakota—but which conducts business in the state—is considered a foreign South Dakota corporation. For example, if you incorporated in Minnesota but decide to open a storefront in South Dakota, you would be a foreign South Dakota corporation. This also means you would need to register with the state by filing an Application for Certificate of Authority with the South Dakota Secretary of State. Foreign corporations are required to file the South Dakota Annual Report each year as well.

Absolutely! We’re happy to start a nonprofit corporation for you. Note that incorporating a South Dakota nonprofit requires a different form. The filing fee is lower as well.

It’s a conundrum: you need a local number to display on your website and give to customers, but you don’t want to make your personal number quite so…public. We get it. And we’ve got you covered with Northwest Phone Service. We can provide you with a virtual phone number in any state—plus unlimited call forwarding and tons of easy-to-use features. You can try Phone Service free for 60 days when you hire us to form your corporation, and maintaining service is just $9 monthly after that. No contract required.