The cost to start an LLC (limited liability company) online in South Dakota is $150. This fee is paid to the South Dakota Secretary of State when filing the LLC’s Articles of Organization. Starting an LLC in South Dakota doesn’t have to be expensive.
Annual Maintenance and Taxes
To maintain an LLC in South Dakota you will need to pay an annual fee of $50 along with sales & use tax at 4.5% and federal taxes. In South Dakota, all LLCs are obligated to file an annual report regardless of size or activity level. Income is passed through to the members’ personal tax returns as LLCs are not taxed at the entity level.
Filing Procedures and Timeframes
It takes 3 to 5 days to form an LLC in South Dakota if filed by mail, while online filings are approved immediately. There are factors that may prolong filing, including documentation issues and processing errors. I recommend submitting proper documentation and fees to avoid delays.
Taking additional steps before starting your LLC is recommended: Research your target market, read industry guides, create a business plan, and write an Operating Agreement.
Filing by mail takes 3 weeks while online filing is immediate.
Additional Considerations for LLCs
Following these steps can successfully launch your LLC in South Dakota and set you up for future success. Starting a business is a huge task already so hiring a formation service can be a good idea. The state charges a $250 penalty for failing to file the $20 biennial statement every second year by the end of the month your LLC was formed.
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