Learn about the annual report and tax filing obligations for South Dakota limited liability companies.
If you want to form and operate a South Dakota limited liability corporation (LLC), you must prepare and submit many paperwork with the state. This page discusses the most significant South Dakota LLC continuing reporting and state tax filing obligations.
Your LLC must submit an annual report with the state of South Dakota. You may submit the report by mail or online at the Secretary of State’s website. A blank report form may be downloaded from the SOS website. Only a few pieces of information are required to complete the report, including your LLC’s name and state-issued ID number, the address of its principal office, the name and street address of its registered agent, and the names and addresses of the LLC’s managers (if the business isn’t member-managed).
Each year, the annual report must be submitted by the first day of the second month after the month in which the LLC was formed. The application cost is $50. The SOS should notify you at least 30 days before the yearly report is due.
State Corporation Tax
Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members.
South Dakota is one of just a few states that does not levy a personal or corporate income tax. As a result, most LLCs, even those that may have decided to be taxed as corporations, owe no state income taxes. Furthermore, since South Dakota does not have a personal income tax, LLC members will normally owe no state tax on income earned via a South Dakota LLC.
Employer Taxes in the State
Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Employers in South Dakota, on the other hand, may be required to pay state taxes.
You will very certainly need to register to pay state unemployment insurance (UI) taxes. South Dakota’s Department of Labor and Regulation is in charge of these taxes (DLR). These taxes may be registered for online or by mail using DLR Form 1. Then, each quarter, utilize DLR Form 21 to record your salary and pay your unemployment insurance taxes. Visit the DLR website for further information.
Taxes on Sales and Use
If your LLC sells items to South Dakota clients, you must collect and remit sales tax. This implies you’ll have to register with the Department of Revenue for this reason and then make periodic sales tax payments for products sold. You may sign up online. After you register, you will get a sales tax license. Then, on a regular basis, you must file sales tax returns with the DOR. A blank sales tax return may be downloaded from the DOR website. Visit the DOR website for additional information.
Other States Registration
If you want to do business in states other than South Dakota, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.