How Much Does An LLC Cost In South Dakota? (Fees Revealed)
The Articles of Organization create a South Dakota LLC. Filing online with the Secretary of State costs $150, or $165 by mail.
Staying registered afterward isn't free either. An Annual Report runs $55 online, or $70 by paper. It comes due each year, on the first day of the month the LLC was first formed. A registered agent also has to stay on file the whole time, whether that's the owner or a paid service.
What an owner actually spends beyond those two items depends on the business itself. Its industry matters. So does whether it needs a paid registered agent, and which optional filings it picks. The cost breakdown below sorts each charge by when it comes due.
Quick Summary
- Paying online instead of by paper saves a flat surcharge. That applies to both the formation filing and the Annual Report.
- Missing the Annual Report deadline enough years running can get the LLC dissolved. Getting it back costs more than staying current would have.
- No state personal or corporate income tax applies to South Dakota LLC profits. The state's sales tax still applies to any taxable sales, though.
| Cost Item | Amount | Frequency | Required? |
|---|---|---|---|
| Articles of Organization | $150 online / $165 paper | One-time | Yes |
| Registered Agent Service | $0 self / $80-$300 hired | Every year | Yes (self-serve allowed) |
| Name Reservation | $25 | One-time, optional | No |
| Annual Report | $55 online / $70 paper (late fee if missed) | Every year, anniversary month | Yes |
| Business/Professional License | Varies | Varies | If applicable |
| Operating Agreement | $0-$200+ | One-time | No |
| DBA / Trade Name | $10 | One-time, renewable | No |
| Certified Copies | $15 + $2/page | As needed | No |
| Certificate of Good Standing | $20 online / $35 paper | As needed | No |
| EIN | $0 | One-time | Yes for multi-member, if applicable for single-member |
Cost to Start a South Dakota LLC
Getting a South Dakota LLC on the books takes one mandatory filing and one standing requirement. A third item only matters if an owner wants a name locked down before filing.
1. LLC Formation Filing Fee ($150 Online / $165 Paper - Mandatory)
South Dakota LLCs form by submitting Articles of Organization to the South Dakota Secretary of State. Filing through the SOSEnterprise portal costs $150. Choosing the paper route instead runs $165. That adds a flat $15 paper-processing charge on top.
There's no other mandatory step to put the business on record. A business expanding into South Dakota from another state pays for a Certificate of Authority instead. That's priced at $750 online or $765 by paper. It's a different LLC cost from domestic formation.
2. Registered Agent Service ($0 Self / $80-$300 Hired - Mandatory to Have, Optional to Hire)
Each South Dakota LLC needs a registered agent with a physical in-state address. That address goes right on the Articles of Organization. Legal paperwork and state notices get delivered there.
Naming yourself or another LLC member costs nothing. The address just needs to be genuine, a real South Dakota street rather than a P.O. box. Businesses that would rather outsource the job often pay a South Dakota registered agent between $80 and $300 a year. The main upside is keeping a home address out of the public record.
3. Name Reservation ($25 - Optional)
An owner who wants to lock in a business name before filing can reserve it for $25. That holds the name for 120 days. The same person can't reserve that exact name again until at least 60 days after the hold lapses.
This step is skippable, though. The South Dakota LLC lookup tool checks name availability on its own. That happens right when the Articles of Organization get filed, at no extra charge.
Costs After Your South Dakota LLC Is Approved
Formation is just the entry fee. A handful of ongoing and situational costs follow once the state signs off. Some apply each year. Others only apply if the business needs them, or takes a specific action.
1. Annual Report Fee ($55 Online / $70 Paper - Mandatory)
This filing comes due on the first day of a set month each year. That's the same month the Articles of Organization were first filed in. Filing it keeps the LLC's address and management details current with the Secretary of State.
Filing late adds a penalty on top of the base fee. The Secretary of State's own Annual Report tool puts that penalty at $50. A separate statewide fee-schedule page lists the same charge as $55 instead [1]. Check the current figure when actually filing late, since the two official pages don't agree.
Ignoring the report carries a bigger risk than the late fee, though. Enough missed filings can get an LLC dissolved or revoked. Getting it back active takes a separate filing, on top of everything already owed.
2. Business and Professional Licenses (Varies - If Applicable)
A sales tax license from the Department of Revenue costs nothing. It's required before a business sells anything taxable. Even that doesn't apply to each LLC, though. It's the closest thing South Dakota has to a blanket state license.
Cities, counties, and licensing boards each add their own permit rules on top by industry. Check locally first. Then check with the state board too if the trade itself is regulated.
3. Taxes Payable (If Applicable)
South Dakota has neither a personal income tax nor a corporate income tax. So profits passing through to LLC owners escape state-level income tax entirely. That's a real advantage, but it doesn't cover each tax the business might owe. A couple of others can still apply, depending on what it sells:
- Sales and use tax: currently 4.2% statewide. That's a temporary rate reduction, running through June 30, 2027. Most cities and towns add their own 1% to 2% on top [2].
- Contractor's excise tax: a 2% tax on gross receipts from construction, building, or installation work. It needs its own license too.
Both licenses get requested online through the South Dakota Department of Revenue, and neither one costs anything to apply for.
4. DBA / Trade Name Registration ($10 - Optional)
Doing business under a name other than the LLC's own registered name takes a DBA. South Dakota formally calls this a Fictitious Business Name registration. It costs $10 to file, $10 to amend, and $10 to renew. Canceling one outright costs nothing.
5. Certified Copies of Business Documents ($15 Plus $2 a Page - Optional)
A certified copy of anything on file with the Secretary of State costs $15, plus $2 for each page copied. Banks and out-of-state agencies often request one for a loan approval or a foreign-registration filing.
6. Certificate of Good Standing ($20 Online / $35 Paper - Optional)
A Certificate of Good Standing runs $20 online, or $35 by paper. It shows the LLC's Annual Reports are current and the business is in good standing. Lenders, landlords, and other states commonly ask for one as proof the LLC is legitimate and current on its filings.
7. Operating Agreement ($0-$200+ - Optional but Recommended)
Nothing in South Dakota law forces an LLC to file an operating agreement with the state. Skip one, though, and questions stay unanswered on paper. A court ends up filling those gaps if members later disagree about money or control.
A free single-member operating agreement template covers the basics. It's linked in the cost table above, for a solo-owned LLC. Multiple owners generally need something more thorough. Hiring an attorney or buying a template through a formation service usually runs $100 to $200 or more. The price scales with how much detail it covers.
8. Employer Identification Number ($0 - Required for Multi-Member LLCs, Recommended for Others)
Multi-member LLCs need an EIN no matter what. Single-member LLCs only need one once a specific trigger comes up, like hiring or opening a bank account.
Either way, an EIN costs nothing straight from the IRS, and it usually takes only a few minutes online. Most banks won't open a business account without one. Nobody has to pay a formation service extra just to handle this.
FAQs
How Much Does an LLC Bank Account Cost in South Dakota?
Bank fees for a South Dakota LLC account vary by institution, and no state agency sets or publishes them. Many banks waive monthly fees entirely once an account clears a minimum balance or transaction threshold, so it's worth comparing a few options before opening one.
What Is the Sales Tax Rate for a South Dakota LLC?
The state sales tax rate for a South Dakota LLC is currently 4.2%. A business doing construction or building work owes a separate tax on top of that, the 2% Contractor's Excise Tax, which needs its own license to collect.
Does South Dakota Require LLCs to Reserve a Business Name Before Filing?
No, name reservation is entirely optional in South Dakota. It mainly helps someone who isn't ready to file yet but wants a specific name locked in, and even then, that same person can't renew the hold back-to-back: the rules require a 60-day gap before reserving the identical name again.
Do South Dakota LLCs Need an Operating Agreement?
No, South Dakota doesn't require an operating agreement to be filed with the state, though many banks ask to see one before opening a business account. Multi-member LLCs have the most riding on it, since it's the document that decides who has the final say when owners disagree.
References:
- https://sdsos.gov/general-information/filing-fees.aspx
- https://dor.sd.gov/businesses/taxes/sales-use-tax/
