Start Your South Dakota LLC in 1 Business Day

How to Form an LLC: Step-by-Step

1. 1

   Choose Your LLC Name

   Select a unique name that includes 'LLC' or 'Limited Liability Company' and isn't already taken by another South Dakota business. Search the South Dakota Secretary of State's database to check availability before filing.

   Pro tip: South Dakota allows you to reserve your chosen name for 120 days for a $25 fee if you're not ready to file immediately.
2. 2

   Designate a Registered Agent

   Appoint a registered agent with a South Dakota street address who can receive legal documents during business hours. You can serve as your own agent or hire a professional service for privacy and reliability.

   Pro tip: Professional registered agents provide mail forwarding and ensure you never miss important legal notices, which is especially valuable if you live outside South Dakota.
3. 3

   File Articles of Organization

   Submit your Articles of Organization to the South Dakota Secretary of State with the required information including your LLC name, registered agent details, and management structure. The filing fee is $150 and processing takes just 1 business day.

   Pro tip: File online through the Secretary of State's portal for the fastest processing and immediate confirmation of your filing status.
4. 4

   Create an Operating Agreement

   Draft an operating agreement that outlines ownership percentages, management structure, and operational procedures for your LLC. While not required by South Dakota law, this document protects your limited liability status and prevents disputes.

   Pro tip: Even single-member LLCs benefit from an operating agreement as it demonstrates the separation between personal and business activities to the IRS and courts.
5. 5

   Obtain an EIN from the IRS

   Apply for an Employer Identification Number (EIN) from the IRS, which you'll need for tax filing, opening business bank accounts, and hiring employees. The application is free and can be completed online in minutes.

   Pro tip: Get your EIN immediately after your LLC is approved - you'll need this 9-digit number for almost every business transaction moving forward.
6. 6

   Open a Business Bank Account

   Establish a dedicated business bank account using your Articles of Organization, EIN, and operating agreement. This separation is crucial for maintaining your LLC's limited liability protection and simplifying tax preparation.

   Pro tip: Many South Dakota banks offer special business account packages for new LLCs, so shop around for the best fees and features for your specific needs.
7. 7

   Obtain Business Licenses and Permits

   Research and apply for any required business licenses, permits, or professional certifications based on your industry and location. Requirements vary by business type and may include city, county, state, or federal permits.

   Pro tip: Contact the South Dakota Small Business Development Center for free guidance on identifying all licenses required for your specific business type and location.