Does Walmart require prior marketplace experience to apply?

Walmart publishes no formal experience requirement, but a demonstrated sales record elsewhere (Amazon, eBay, or your own Shopify store) tends to improve application outcomes. A strong sales history may help; it is not a stated eligibility criterion, and it has nothing to do with forming in South Dakota.

Is South Dakota a good state to form the LLC I will sell on Walmart Marketplace with?

Walmart does not favor any formation state. Any validly registered US LLC with an EIN is eligible, South Dakota included, so choose on South Dakota's own cost, privacy, and annual obligations rather than on what Walmart prefers.

I do not live in South Dakota. Can I still use a South Dakota LLC on Walmart Marketplace?

Walmart Marketplace does not check where you live, only that the South Dakota entity is validly registered and that the details you enter match South Dakota's record. The catch is not Walmart Marketplace, it is the state you actually operate from: states require an out-of-state LLC to register as a foreign LLC before it transacts business there, which is a second filing and a second fee on top of South Dakota's $150. Forming in South Dakota while working somewhere else usually means paying both states, not one.

Do I need a South Dakota sales-tax permit before my first sale through Walmart Marketplace?

Not for your Walmart Marketplace orders themselves. South Dakota charges a 4.2% state rate and, like every sales-tax state, has a marketplace-facilitator law that makes Walmart Marketplace collect and remit it for you. You need your own South Dakota registration once you also sell off-marketplace and either have physical presence in South Dakota or cross its remote-seller threshold of $100,000 in sales in the previous or current calendar year (no transaction-count threshold).

Marketplace Verification

How to pass Walmart Marketplace verification with a South Dakota LLC

What Walmart Marketplace asks for at signup, and which South Dakota LLC documents satisfy each requirement.

By Edmond Hui · Last updated: August 4, 2026

Edmond Hui · Founder, MyStateLLC

Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.

A South Dakota LLC is generally eligible for Walmart Marketplace verification — you will need to provide your Articles of Organization, EIN, beneficial-owner ID, and a valid US business address. Nothing about forming in South Dakota blocks approval, and nothing about it guarantees approval either: the final call is Walmart Marketplace's.

Walmart Marketplace requires sellers to pass a multi-step business verification process before listing products. For a South Dakota LLC, this includes providing an EIN (US Business Tax ID), completing a W-9 tax classification, submitting your South Dakota business registration documentation (the Articles of Organization), and verifying the identity of the legal representative. Walmart cross-checks all information with federal and state records, and the process typically takes a few minutes to a few business days. Payouts are disbursed via a connected payment processor. Payoneer is the default.

In South Dakota the entity behind that check is an LLC created by filing Articles of Organization, which costs $150. South Dakota does not publish a processing time for LLC filings, so treat state approval as the open-ended step in your timeline rather than the Walmart Marketplace review. Because South Dakota names a member or manager on a routine public filing, the owner name Walmart Marketplace asks you to confirm is already a matter of public record.

South Dakota has 7,120 solo retail trade businesses with no employees, averaging $46,113 in annual receipts (U.S. Census Bureau, Nonemployer Statistics (NES), 2023).

Not legal advice: Verification requirements change, and so do South Dakota's filing fees and forms. Confirm current platform rules with Walmart Marketplace, and current filing rules with the South Dakota filing office, before you file. Walmart Marketplace's requirements were last reviewed 2026-07-21, and South Dakota's figures on this page come from its own published schedule.

What Walmart Marketplace requires, and how a South Dakota LLC meets each

Requirement	How your South Dakota LLC satisfies it
US Business Tax ID (EIN)	Provide your federal EIN (free from the IRS; non-US founders without an SSN must apply via Form SS-4 by fax or phone rather than the online tool) — independent of South Dakota.
W-9 tax classification	Complete the tax interview. A South Dakota LLC owned by US persons typically submits a W-9 using its EIN; non-US owners of a disregarded-entity South Dakota LLC generally use a W-8 form instead.
Business name and address match IRS records	Use the exact LLC name as South Dakota recorded it on your Articles of Organization; it must match your bank account holder name.
State business registration documentation	Upload the Articles of Organization South Dakota returned to you, stamped and approved.
Legal representative personal ID	Provide a government ID for each beneficial owner named in your South Dakota filings. South Dakota names a member or manager on a routine public filing, so at least one name already matches state records.
Verified US business address	Use a US street address registered to the LLC in South Dakota (your South Dakota registered-agent or virtual business address), since a PO box is usually rejected.
Payment processor account for disbursements	Link a US business bank account opened with your EIN and your South Dakota Articles of Organization.

South Dakota-specific things to watch

South Dakota names a member or manager on a routine public filing, so Walmart Marketplace's beneficial-owner check will line up with public state records — you still upload a government ID for each owner. (South Dakota's annual report confirms the LLC's ownership/management each year on the public record.)
Walmart Marketplace payouts flow through to your personal return, and South Dakota won't tax them under a personal income tax: No personal income tax.

South Dakota sales tax & nexus rules for Walmart Marketplace sellers

South Dakota charges a 4.2% state sales-tax rate, and like every state with a sales tax it has a marketplace-facilitator law — Walmart Marketplace collects and remits South Dakota sales tax on your marketplace orders for you. You still need your own South Dakota registration if you also sell off-marketplace (your own site, invoices) and either have physical presence in South Dakota — an in-state location, inventory, or employees — or cross the state's remote-seller economic-nexus threshold of $100,000 in sales in the previous or current calendar year (no transaction-count threshold).

South Dakota is the state that brought us economic nexus — its law was the subject of South Dakota v. Wayfair (2018), the Supreme Court case that allowed states to tax remote sellers. South Dakota broadly taxes services, digital goods, and SaaS. The state is an SST full member. South Dakota's 4.2% base rate is among the lower rates nationally. Note: South Dakota repealed its 200-transaction economic-nexus trigger (effective 2023); only the $100,000 sales threshold now applies.

How to verify your South Dakota LLC on Walmart Marketplace

US Business Tax ID (EIN). Provide your federal EIN (free from the IRS; non-US founders without an SSN must apply via Form SS-4 by fax or phone rather than the online tool) — independent of South Dakota.
W-9 tax classification. Complete the tax interview. A South Dakota LLC owned by US persons typically submits a W-9 using its EIN; non-US owners of a disregarded-entity South Dakota LLC generally use a W-8 form instead.
Business name and address match IRS records. Use the exact LLC name as South Dakota recorded it on your Articles of Organization; it must match your bank account holder name.
State business registration documentation. Upload the Articles of Organization South Dakota returned to you, stamped and approved.
Legal representative personal ID. Provide a government ID for each beneficial owner named in your South Dakota filings. South Dakota names a member or manager on a routine public filing, so at least one name already matches state records.
Verified US business address. Use a US street address registered to the LLC in South Dakota (your South Dakota registered-agent or virtual business address), since a PO box is usually rejected.
Payment processor account for disbursements. Link a US business bank account opened with your EIN and your South Dakota Articles of Organization.

Non-US founders with South Dakota LLCs

Walmart Marketplace eligibility for non-US businesses varies by country of incorporation. For a South Dakota LLC owned by non-US founders, the entity must be validly formed with a US address and an EIN, which the Articles of Organization plus an EIN letter establishes. The legal representative completing verification must provide a valid government ID. Check Walmart's current seller application for the list of supported international seller countries, as eligibility expands periodically.

Frequently Asked Questions

: Walmart publishes no formal experience requirement, but a demonstrated sales record elsewhere (Amazon, eBay, or your own Shopify store) tends to improve application outcomes. A strong sales history may help; it is not a stated eligibility criterion, and it has nothing to do with forming in South Dakota.
: Walmart does not favor any formation state. Any validly registered US LLC with an EIN is eligible, South Dakota included, so choose on South Dakota's own cost, privacy, and annual obligations rather than on what Walmart prefers.
: South Dakota charges $150 to file Articles of Organization, and that is the state's fee to create the LLC. South Dakota does not publish a processing time for LLC filings, so treat state approval as the open-ended step in your timeline rather than the Walmart Marketplace review. Walmart Marketplace charges nothing for verification itself, so the $150 filing fee and South Dakota's ongoing obligations are the real cost of getting verified as a South Dakota entity.
: Walmart Marketplace does not check where you live, only that the South Dakota entity is validly registered and that the details you enter match South Dakota's record. The catch is not Walmart Marketplace, it is the state you actually operate from: states require an out-of-state LLC to register as a foreign LLC before it transacts business there, which is a second filing and a second fee on top of South Dakota's $150. Forming in South Dakota while working somewhere else usually means paying both states, not one.
: Not for your Walmart Marketplace orders themselves. South Dakota charges a 4.2% state rate and, like every sales-tax state, has a marketplace-facilitator law that makes Walmart Marketplace collect and remit it for you. You need your own South Dakota registration once you also sell off-marketplace and either have physical presence in South Dakota or cross its remote-seller threshold of $100,000 in sales in the previous or current calendar year (no transaction-count threshold).