Last Updated: September 10, 2024, 8:54 am by TRUiC Team


South Dakota LLC Cost

The minimum South Dakota LLC cost is $150, which covers the filing fee for the Articles of Organization.

However, the total cost of establishing a South Dakota LLC can vary based on your business needs and preferences.

In our South Dakota LLC Cost article, we provide a detailed overview of the costs associated with starting and maintaining an LLC in the state.

More than 84% of our readers form their LLC through a professional service to save time and avoid mistakes.

Northwest ($29 + State Fees)

How Much Does a South Dakota LLC Cost

Below is a summary of the primary requirements and associated fees for forming a South Dakota LLC.

LLC Cost Summary

Requirement Fee
Articles of Organization $150-$765
Registered Agent $0-$130+
LLC Name $0-$35

South Dakota LLC Filing Fee ($150-$765)

To legally form an LLC in South Dakota, you will need to submit the right formation document with the Secretary of State. 

For domestic entities, this is the Articles of Organization, while for foreign entities (i.e., those operating outside of South Dakota), it’s the Certificate of Authority.  

The filing fee is $150 for domestic LLCs and $750 for foreign LLCs. Filings done by mail incur an additional cost of $15. 

If you opt to use an LLC formation service, your cost will be slightly higher as it will include a small service fee on top of the state filing fee(s).

These are generally around $30, but can be cheaper or significantly more expensive depending on the provider you go with.

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Have a look at our in-depth review of the best and most affordable LLC Formation Services in 2024. 

South Dakota Registered Agent ($0+)

As part of the LLC formation process, you’ll need to appoint a registered agent. This individual or entity in South Dakota will accept legal documents and government correspondence on behalf of your LLC.

While you can act as your own registered agent at no cost, many business owners prefer to hire a professional service in order to avoid penalties for non-compliance and keep their personal information private.

The cost for registered agent services in South Dakota typically ranges between $125 and $300, although some providers offer a free first year if you form your LLC with them. 

Get a Free Registered Agent Service

Form an LLC with Northwest Registered Agent to get one year of registered agent services free of charge ($29 + State Fees).

South Dakota LLC Name ($0-$35)

While the process of naming your South Dakota LLC doesn’t incur a direct cost, there are two potential expenses to be aware of.

Reserving a Name

If you’ve chosen a name but aren’t ready to form your LLC yet, you can reserve it for 120 days by filing an Application for Reservation of Name with the Secretary of State (which costs $25). 

After the reservation period expires, you will need to wait 60 days before attempting to reserve the same name again (if you’re still not ready to form your LLC).

Note: We recommend performing a Business Name Availability Search on the South Dakota Secretary of State’s website to confirm the availability of your desired name before attempting to reserve it in order to save time and money. 

You should also make sure that your prospective name’s corresponding domain is available (this is the URL you’ll need for your business website). 

Find a Domain Now

Doing Business As (DBA) Name

If you plan to operate your business under a different name, you’ll need to register a DBA (Doing Business As) name. 

In South Dakota, DBA names are registered online through the Business Services Online portal for a $10 filing fee. The DBA registration lasts for five years, after which you’ll need to renew it.

You’ll be able to renew your DBA within 90 days before its expiration date.

Optional South Dakota LLC Formation Costs

In addition to the standard fees, there might be a few additional costs involved with your LLC’s formation depending on your unique circumstances and needs.

Expedited South Dakota LLC Filing

The South Dakota Secretary of State usually processes filings within three to five business days. 

If you need your business’s formation documents to be handled faster, you can pay a $50 fee for expedited processing; in this case, the SOS promises quicker handling than normal, although the exact timeline is not specified.

Local Business Licenses

Depending on your LLC’s location and activities, you may need a local business license. 

For example, a Transient Merchant License in Brookings costs $200 per month, while a pipe-laying license in Watertown costs $250 per year.

Note: You can use the interactive map on the South Dakota Association of County Officials website in order to find the relevant contact details for your LLC’s local licensing.

Certificate of Good Standing

A Certificate of Good Standing, also known as a Certificate of Existence, may be required to open a business bank account or secure loans. 

This certificate can be obtained online from the South Dakota Secretary of State’s website for $20. You’ll need your LLC’s Business ID to request it, which you can find by using this Business Information Search tool.

South Dakota LLC Operating Agreement

While not legally required, it’s advisable for South Dakota LLCs to have an operating agreement. This document outlines the roles and responsibilities of LLC members or managers and helps prevent potential future disputes.

You can create an operating agreement yourself at no cost, or hire an online service or attorney, typically at a cost of several hundred dollars. Keep in mind that there’s benefits to having an LLC operating agreement even as a single-member organization — for example, it can help maintain your LLC’s corporate veil. 

Note: This document is for internal use only and does not need to be filed with the state.

Ongoing Costs to Maintain a South Dakota LLC

In addition to the initial costs of forming an LLC in South Dakota, there are ongoing expenses that you must account for in order to maintain your business.

Annual Report

Your South Dakota LLC must file an Annual Report with the Secretary of State, which will need to be accompanied by a $50 fee. Filing by mail incurs an additional $15 paper processing fee. 

The report is due annually by the first day of the anniversary month of your LLC’s formation. 

Missing this deadline results in a $50 late fee, and your LLC will be marked as “delinquent” until the report is filed.

Registered Agent Maintenance

If you choose to use a professional registered agent to handle your legal documents, you’ll need to pay an annual fee for their services. 

The cost of this service varies, but generally ranges between $125 and $300 per year. 

Even though this is not mandatory, we recommend hiring a registered agent service as a new business owner as it is an affordable way of protecting your personal information and ensuring you stay updated with all state notifications. 

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Ready to Get Started?

Have a look at our LLC South Dakota Guide (DIY Approach)

Let Northwest Registered Agent handle it for you ($29 + State Fees) 

South Dakota LLC vs Other States

South Dakota is arguably on the more expensive side of LLC formation, with an initial filing fee of at least $150 and an annual report fee of at least $50. 

Regardless, it’s important to understand that the best state to form your LLC in will almost always be where you will be operating from — not how expensive or affordable it is. 

This is because registering in a foreign state will likely mean that you will need to pay registration, registered agent, and annual report fees twice.

South Dakota LLC Cost FAQ

In South Dakota, the required paperwork to form an LLC is the Articles of Organization. These must be filed with the Secretary of State, and you can choose to file online or by mail. The cost is $150 if filed online, and $165 if filed by mail.

In South Dakota, any individual or business entity with a physical address in the state can act as a registered agent for an LLC. This agent is the official point of contact for receiving legal notices and documents for the LLC.

Yes, an LLC in South Dakota can use a DBA, also known as a "doing business as" or business name. This allows the LLC to conduct business under a name other than its officially registered one.

LLCs in South Dakota are required to file an annual report with the Secretary of State. This can be done online for $50 or by mail for $65.

Using an LLC formation service in South Dakota can provide a streamlined and hassle-free process for setting up an LLC. These services help ensure that all the necessary paperwork is accurately completed and submitted. They can also provide valuable ongoing support, such as serving as the registered agent, helping with annual reporting requirements, and staying on top of any changes in state regulations affecting LLCs.

You can check if a business name is available in South Dakota by using the Business Information Search and Business Name Availability Search tools provided on the Secretary of State's website.

A Certificate of Good Standing in South Dakota, also known as a Certificate of Existence in some states, is a document that confirms an LLC is legally registered to do business in the state and is in compliance with all state requirements. This certificate might be needed when seeking financing, entering into business contracts, or in other business transactions.

Article Sources

South Dakota Department of Revenue:
https://dor.sd.gov/

IRS - Employer ID Numbers:
https://www.irs.gov/businesses/small-businesses-self-employed/employer-id-numbers

South Dakota Secretary of State:
https://sdsos.gov/default.aspx

SBA - Apply for licenses and permits:
https://www.sba.gov/business-guide/launch-your-business/apply-licenses-permits

Chamber of Commerce - South Dakota Chamber of Commerce List:
https://www.officialusa.com/stateguides/chambers/southdakota.html