LLC Cost in South Dakota – How Much to Pay for an LLC


Save time & be confident while starting your company; use best professional help -
#1 TOP PICK
 ZenBusiness - ($39 + State Fees) online LLC setup
south_dakota_state_seal

Perhaps you are hoping to form a South Dakota LLC. People assume that starting an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in South Dakota.

South Dakota LLC Cost of Filing

Here are the costs involved in forming an LLC in South Dakota.

Cost of Filing Formation Certificates

The South Dakota Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the South Dakota Secretary of State

South Dakota Domestic LLC

  • Online Filing costs $150.
  • Annual Report filing costs $50
  • Name Reservation fee costs $25
  • By Mail: Fill out the application form, and send it to Secretary of State Office, 500 E Capitol Ave, Pierre, SD 57501. Costs $165.

South Dakota Foreign LLC

  • Online Filing costs $750.
  • Annual Report filing costs $50
  • Name Reservation fee costs $25
  • By Mail: Fill out the application form, and send it to Secretary of State Office, 500 E Capitol Ave, Pierre, SD 57501. Costs $765.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

South Dakota LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in South Dakota, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

Our Rating & Pricing

Top Features

Learn More

#1 TOP PICK

$39 + State Fees

  • Lifetime business support

  • 100% accuracy guarantee

  • Expert customer support

$100 + State Fees

  • Fast service

  • Resource center

  • Flat Rate for all services

$0 + State Fees

  • 1 year free agent service

  • Digital storage

  • Different types of plans

Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the South Dakota Department of Revenue for regulatory boards or agencies requiring licensing. 

Taxes payable to the South Dakota Department of Revenue

An LLC in South Dakota has to pay several State as well as Federal Taxes at the stage of formation & during its operation. Read this article to know more about these taxes. The South Dakota State Department of Revenue charges several taxes on an LLC. The two main State Taxes are:

State Income Tax

The state of South Dakota does not charge any State Income Tax on the earnings made by an LLC. Which means more savings on all the income you draw through your LLC.  

State Sales & Use Tax 

Every LLC which is a service provider or is a seller of tangible goods is bound to the sales & use tax in South Dakota. The LLC has to collect taxes & then pay those to the South Dakota Department of Revenue. The Sales & Use Tax is different in different regions, counties, & cities. The current state sales & use tax rate on LLC in South Dakota is 4.5%

Federal Self-Employment Tax

As the name suggests, Federal Self-Employment Tax is paid by all the LLC Business members or managers. This kind of tax applies to all the earnings a member withdraws from the business. 

The Federal self-employment tax rate in South Dakota is 15.3 percent. 

Federal Income Tax

The Federal Income Tax is calculated on the basis of the earnings, the income tax bracket your LLC falls, the deductions, & the manner/ mode of filing.

Federal Income Tax is levied on all the profits your LLC makes minus the deductions & allowances such as Healthcare or Retirement Plans.

Employee & Employer Taxes

If you have several employees who draw monthly salaries, there will be some added Employee-Employer taxes. These tax implications vary, depending on various factors, e.g., the amount, number of employees, etc.

Cost Comparison Between States

South Dakota is surrounded by many states, namely Nebraska, Wyoming, Montana, North Dakota, etc. Each of these states has a different rate of taxes levied on LLCs. Let us take a look at this comparative chart.

StatesFiling FeeAnnual/Biennial FeeSales Tax
South Dakota$150$504.5%
Nebraska$125Not required5.5%
Wyoming$102$504%
Montana$70$10None
North Dakota$135$505%

Based on the kind of industry you LLC operated in, your LLC will be liable to some other taxes & duties. For Example, if your LLC is in the sector of import & export, you have to pay the import-export duty. You should consult with a professional to verify the tax rates or business costs of registering an LLC in South Dakota.

Other Costs

How Much Does It Cost to Maintain an LLC in South Dakota

To avoid legal pitfalls, it’s vital to regularly file the annual reports for your LLC in South Dakota. This is a very simple process, but it requires a lot of attention to detail and careful planning. The Secretary of State requires annual reports to be filed before the anniversary date of the LLC so that their records are updated. Filing these reports online costs $50, while filing them on paper costs $65. The annual report should be a planned out part of your yearly budget.

You can form an LLC in South Dakota for as little as $250. This type of business allows you to choose the name that best suits your needs and budget. An LLC in South Dakota is a very flexible option that provides flexibility and tax benefits to its owners. In the following guide, you’ll learn how to create an LLC in the state of S.D., including the registration fees and ongoing filing costs.

To register an LLC in South Dakota, you’ll need to choose a business name and appoint a registered agent. Next, you’ll need to file Articles of Organization with the Secretary of State. These are documents that officially create your LLC in South Dakota. Choosing a good name is an important step in forming an LLC, and you’ll need to check the availability of a suitable name before signing up.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

Leave a Comment