How to Start an LLC in South Dakota

How to Start an LLC in South Dakota


An LLC is very flexible and can be used for a variety of different business purposes. It is also a great choice for companies who are looking to keep their start-up costs to a minimum.

One of the things you need to know on how to start an LLC in South Dakota is that the law allows you to form an LLC with just a few documents, which makes this process particularly easy and convenient.

Even though the LLC concept is not new, there are still very many misconceptions about the way in which it operates.

how to start an llc in south dakota

As with anything that is new, it usually takes a while for people to really understand how to take full advantage of all its opportunities and how best to go about starting an LLC in South Dakota.

Steps to Start an LLC in South Dakota

The following is a detailed list of the steps that you need to follow when starting an LLC in South Dakota:

1. Choose a Name for your Business

The first step to starting an LLC in South Dakota is choosing a name for your business entity. Since this is a critical aspect of the filing process, you should take some time to choose the name that best identifies your company.

There are thousands of businesses registered in this state so you may have to spend a bit of time researching the available name options. Also, take into account the fact that the name you choose will be registered with the state so it should not be too similar to any existing business in your area.

2. Set up a Resident Agent

You need to appoint a resident agent for your LLC in South Dakota. A resident agent is a person or entity that is available at all times to handle official communication with county and state government agencies and courts. This person or entity will receive all legal notices, summonses and other important official letters that are addressed to your LLC.

You should choose whoever is most appropriate for this position and should be someone that you know to be trustworthy. This person also needs to have a mailing address so that they can receive official papers from the state. There are professionals who handle this service as well, so you can always hire a registered agent to do this for you.

3. Draft an Operating Agreement

This is one of the most important documents required when forming a limited liability company in South Dakota. The operating agreement is essentially a contract between all LLC members that states what each member can and cannot do while working with the company. It also outlines how profits and losses are distributed.

You will want to make sure the operating agreement is comprehensive enough for the specific purposes of your business.

In addition to the information above, you will also want to include other pertinent details such as how many members are allowed in the company, what percentage of shares each member will receive, how future members are added, and much more.

4. File Articles of Organization

Once you have drafted the operating agreement and chosen a name for your company, you will be required to file articles of organization. These are documents that provide the state with important information about your LLC and are also what officially establishes your legal business entity.

The articles of organization contain basic information about the LLC such as its name, registered agent’s address, and what types of businesses it is authorized to operate. Once the state receives these documents, they will register the LLC with the state and issue an official certificate of formation.

5. Receive Certificate from the State

Once you have filed the articles of organization, you need to make sure that you receive your certificate of formation from the state within 90 days. If this happens, your LLC is considered “registered” and is officially established. At this point, your company is officially recognized by the state as a legal entity and all of its required documents are now in place.

6. Obtain a Federal Employer Identification Number (EIN)

Every LLC needs to obtain a federal Employer Identification Number (EIN) so that your business can receive tax-related benefits from the IRS. You can obtain an EIN through the IRS once you have completed the steps above.

There are fees associated with this process, though, so it is important that you choose a professional to handle this for you. This will also provide you with an official code number that you can use whenever dealing with the state and federal government, as well as other individuals and organizations in South Dakota.


The best way to get a clear picture of how to start an LLC in South Dakota is to use this information as a guide whilst consulting a professional.

This article has outlined every step you will need to follow in order to start up your business and complete all of the necessary paperwork but working with a professional will make the entire process easier and more enjoyable. They will also handle all of the paperwork, so you won’t have to deal with it on your own.

You should make sure that the company you hire is well-established in the business community and have positive reviews from other clients. This way, you can be sure that they are qualified to handle this process for you and take care of everything in a timely manner.

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