Start an LLC in South Dakota in 5 Simple Steps
To form a South Dakota LLC, you must first submit the Articles of Organization with the South Dakota Secretary of State, which costs $150. You may apply both online and by mail. The Articles of Organization are the legally binding documents that establish your South Dakota limited liability business.
The first and most significant step in founding an LLC in South Dakota is selecting a business name. Make sure your name meets South Dakota naming standards and is readily searched by prospective customers.
1. Follow the South Dakota LLC name guidelines:
2. Does the name exist in South Dakota? Do a South Dakota LLC name search on the State’s website to ensure that the name you choose isn’t currently in use.
3. Is the URL accessible? We propose that you investigate if your company’s name is accessible as a web domain. Even if you don’t intend to launch a company website right away, you may wish to purchase the URL to prevent others from doing so.
You must name a registered agent in South Dakota for your LLC.
What exactly is a Registered Agent? A registered agent is a person or corporate organization that receives vital tax forms, legal papers, lawsuit notices, and other government communication on your behalf. Consider your registered agent to be your company’s point of contact with the state.
Who is eligible to be a Registered Agent? A Registered Agent must be a South Dakota person or an organization, such as a registered agent service, that is permitted to do business in the state of South Dakota. You may choose someone from your organization, even yourself.
You must submit the Articles of Organization with the South Dakota Secretary of State to register your South Dakota LLC. You may apply both online and by mail.
Although an operating agreement is not necessary to incorporate an LLC in South Dakota, it is a good idea to have one.
What exactly is an operating agreement? An operating agreement is a legal document that outlines an LLC’s ownership and running processes.
Why are operating agreements necessary? A detailed operating agreement guarantees that all firm owners are on the same page and decreases the likelihood of future disagreement.
What exactly is an EIN? EIN is an acronym that stands for Employer Identification Number. EINs are nine-digit numbers provided by the Internal Revenue Service (IRS) to companies to assist them be identified for tax reasons. It is basically a business’s Social Security number.
An EIN is also known as a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN) (FTIN).
What if my single proprietorship already has an EIN?
When transitioning a sole proprietorship to an LLC, the IRS demands a new EIN.
Where can I get an EIN? The IRS will provide you an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or by mail.