South Dakota LLC Cost
To start an LLC in South Dakota, you will have to pay $150 to file your Articles of Organization. There is an additional $50 each year for filing the annual report with the South Dakota Secretary of State. Additional expenses, such as registered agent fees, business license, and business insurance depend on your LLC’s industry and needs. Let’s go over the most common costs of starting an LLC in South Dakota.
What You'll Find In This Article:
- South Dakota LLC Formation Fee
- South Dakota Annual Report Fee
- South Dakota Registered Agent Fee
- South Dakota State Business License Fee
- South Dakota Professional Licensing Fees
- Local Business License Fees in South Dakota
- Optional LLC Fees in South Dakota
- Business Insurance Premiums
- Cost to Register a Foreign LLC in South Dakota
South Dakota LLC Formation Filing Fee: $150
To start a South Dakota LLC, you must first file your South Dakota Articles of Organization. This has a filing fee of $150 if filed electronically or $165 if filed via paper form. However, if you are filing to form a South Dakota Series LLC—an LLC that consists of a parent business and a number of “child” businesses—then you’ll have to pay slightly more. LLC Master Series Article of Organization costs $200 to file.
Regardless, you file your Articles of Organization with the South Dakota Secretary of State. You may file in person, through the mail, or on the Secretary of State’s online business services portal. Online filings are processed immediately while paper filings are processed within 3-5 business days.
South Dakota Annual Report Fee: $50
All LLCs in South Dakota must file an annual report. This costs $50 to file electronically or $65 to file via the mail or in person. (South Dakota Series LLCs are only required to file one report.)
South Dakota annual reports are due every year on the first day of the business’ anniversary month. So if you started your business on June 15, 2022, your annual report will be due on June 1st every year.
Businesses are allowed to file annual reports two months early, giving you about sixty days of submission time. However, if you file after their due date, you will be charged a $50 late fee.
Find out how to file your South Dakota Annual Report.
South Dakota Registered Agent Fee
Your South Dakota Articles of Organization requires you to list your South Dakota registered agent. Your registered agent must be: physically present in South Dakota, available during regular business hours, and either an individual over eighteen or a company. The main purpose of your registered agent is to accept legal notices on your business’ behalf.
You could appoint a business partner, employee, or yourself as your registered agent. However, many businesses choose to hire a professional registered agent service. Since your registered agent accepts legal summons on your behalf, having a company dedicated to this process provides ease of mind and privacy. The fees for registered agent service vary from company to company. Northwest’s registered agent service is $125 per year, with no hidden fees or up-charges.
South Dakota State Business License Fee
All businesses in South Dakota require at least one state-issued business license. The Sales/Use Tax License is required for any business that has a physical presence in South Dakota, regardless of any profit thresholds.
There is no charge for a Sales/Use Tax License and no need to renew the license at any point. If any of your business information changes, such as your mailing address or if you open additional locations, you can update that information with the South Dakota Department of Revenue.
South Dakota Professional Licensing Fees
South Dakota requires professional and occupational licenses for a variety of businesses. If the professionals working in the business require specialized training or education, such as pharmacists, electricians, and cosmetologists, then a professional license is needed.
Each profession has a South Dakota board that sets the fees, determines the qualifications, and grants the licenses, so the costs vary. For example, the Department of Health has a board of Social Work Examiners. A license to be a Certified Social Worker to engage in private, independent practice costs $210 while a social work associate’s license is only $90.
You can find a comprehensive list of all South Dakota Occupational Licensing Agencies on the South Dakota Department of Labor and Regulation website.
Local Business License Fees in South Dakota
Local business licenses change depending on your city and county requirements. Even inside the same city, the fees depend on your exact license. For example, Sioux Falls requires that all fortune tellers and clairvoyants pay a $35 fee, while circus acts require a $100 fee. Check with your local business department to see which business licenses you will require.
Optional LLC Fees in South Dakota
The fees listed above are required for every LLC in South Dakota. Below are fees that you might run into depending on your LLC’s individual needs.
You can reserve a business name in South Dakota for $25.
Reserving a business name allows you to secure the name you want to use prior to filing your Articles of Organization. To do this, simply do a business name search with the South Dakota Secretary of State and then submit an Application for Reservation of Name. This application reserves a business name up to 120 days.
DBA (Doing Business as) Name
You can register a DBA Name with the South Dakota Secretary of State for $10.
To file a DBA Name application, you will need your Secretary of State Business ID, the owner information, and your filing fee. You must register your DBA Name on the South Dakota Secretary of State’s online business portal. Your DBA must be renewed every 5 years.
Certified Copies of Business Documents
Certified copies of your business documents, such as a copy of your Articles of Organization, cost $15 plus $2 per page. Certified copies can be expedited for a service fee of $50 in addition to the regular fee.
Certified copies are needed for a variety of reasons, such as applying for foreign qualification in another state, opening a new bank account, and applying for business loans or grants.
South Dakota Certificate of Good Standing
A Certificate of Good Standing (also called a Certificate of Existence) costs $20 if you file online or $35 if you file via paper form. If you file online, you’ll immediately be given a PDF copy to download. If you apply via the mail, you will typically receive your Certificate within two business days.
Here’s how to get an South Dakota Certificate of Good Standing.
Business Insurance Premiums
South Dakota does not require LLCs to take out business insurance. However, you might want to invest in workers’ compensation insurance, which covers the cost of employee accidents, and liability insurance, which covers the cost of claims for injuries or damages to the business.
Like your personal health insurance or car insurance, business liability insurance is for the what-ifs and accidents. Liability insurance protects your personal assets and your LLC in the case of lawsuits, workplace accidents, natural disasters, property damage, and more.
The cost of business insurance varies depending on your business’ size, industry, and location. Check with a local business insurance agent to determine your business’ insurance fees.
Learn more about LLC Business Insurance.
How much does it cost to register a foreign LLC in South Dakota?
To register your out-of-state (or foreign) LLC in South Dakota, you will need to file an Application for Certificate of Authority to the South Dakota Secretary of State. This costs $750 to file online and $765 to file via the mail.
You will also need a South Dakota registered agent, a Certificate of Good Standing from your home state, and acquire any permits or licenses your business needs.
Read more about how to register a foreign LLC in South Dakota.