You'll have an LLC in South Dakota before you know it with this handy guide.
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by Rudri Bhatt Patel
Rudri Bhatt Patel is a former attorney turned writer and editor. Prior to attending law school, she graduat...
Updated on: August 4, 2024 · 5 min read
A limited liability company (LLC) offers liability protection and tax advantages, among other benefits for small businesses.
LLC formation in South Dakota is easy. Just follow these six steps, and you'll be on your way.
You'll need to choose a name to include in your articles before you can register your LLC.
Names must comply with South Dakota's naming requirements. The following are the most important requirements to keep in mind:
See a complete listing of South Dakota's naming rules.
South Dakota requires you to appoint a registered agent for your LLC.
A registered agent is the person or entity authorized to receive service of process and other official legal documents and notices on behalf of your LLC.
A registered agent can be a person (including yourself or an employee of your LLC) or an entity that offers a registered agent service. They must meet the following criteria:
The articles of organization is a document that officially establishes your LLC by laying out basic information about it.
Prepare articles of organization and file them with the South Dakota Secretary of State to register your South Dakota LLC properly. Though it sounds like a big job, that simply means filling out a relatively simple online form and submitting it. You can also send it by mail.
To prepare your articles, you'll usually need the following information:
Once you file your articles, the secretary of state will review the filing. After you receive approval for your articles, the LLC becomes a legal business entity.
The state will issue you a certificate that confirms the LLC formally exists after you file and receive approval of the LLC's formation documents. When the South Dakota Secretary of State approves your LLC, you will receive a stamped and approved certificate of organization. You can also access this certificate online.
This certificate will allow the LLC to obtain an Employer Identification Number (EIN), business licenses, and business bank account.
An operating agreement is a document that outlines the way your LLC will conduct business.
South Dakota doesn't require an operating agreement, but it is an essential component of your business. Having a readily accessible, written operating agreement is helpful for various reasons, including settling disputes that may arise over financial agreements and other potential litigation. Without an agreement in place, the courts make determinations based on state law, not necessarily what is in the best interest of the LLC and its members.
The operating agreement can include, but is not limited to, the following:
The nine-digit Employer Identification Number (EIN) is assigned by the Internal Revenue Service to identify your LLC for taxes. You can obtain your EIN by mail or online through the IRS.
The purpose of an EIN is to assist with the following:
Registering your LLC gives you a legal foundation to conduct business. Plan to keep your LLC compliant and in active status on the state's website.
You must file an annual report for your LLC. The first report is due by the last day of your LLC's anniversary month, following the year of formation. All subsequent annual reports will be due by the same date every year.
You might need to make quarterly tax payments and maintain a registered agent for your business.
A registered LLC also makes it possible for you to do the following:
Every state has different rules, costs, and considerations for LLC formation.
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