Processing Times and Initial Steps
How long does it take to form an LLC in South Dakota? The processing time is typically 1-2 business days if filing online or 5-7 business days if filing by mail. To form an LLC you need:
- A completed set of Articles of Organization
- A business name
- A filing fee paid to the Secretary of State
Naming Your Business and Tax Identification
Deciding on a business name involves:
- Brainstorming unique names
- Researching availability
When filing taxes, the government uses your EIN to identify who owns the company, how much it makes, and how much tax to collect. You can file your EIN directly on the IRS website if you have the paperwork or use an online service.
Advantages of a South Dakota LLC and Further Steps
Incorporating as an LLC offers benefits like pass-through taxation and liability protection. South Dakota provides a business-friendly environment with low taxes and regulations, making it a desirable location to launch an LLC.
While an Operating Agreement is not required, it is highly recommended to have one. LLCs are taxed as pass-through entities, meaning profits and losses pass to owners’ tax returns.
Filing and Maintenance Costs
The annual report filing fee to maintain an LLC in South Dakota is $50 online or $65 via paper. To form an LLC yourself, just requires paying the $155-165 state filing fee. Using a service has a small additional fee but handles the process for you.
Should I Get an EIN or LLC First?
It’s best to get an EIN for your LLC after your LLC is approved by the state to make sure your LLC name is approved before “attaching” an EIN to it.
Applying for an EIN is free through the IRS. The online application process results in an immediate EIN being issued. Applications sent by mail or fax can take 4 weeks to process an EIN.
Overall Timeline for LLC Setup
The average timeline for setting up an LLC is typically between four to eight weeks, including:
- Filing paperwork
- Applying for an EIN
- Registering with tax agencies
- Obtaining licenses
This timeline may vary depending on state regulations, availability of resources, and timing of paperwork submissions. By thoroughly researching requirements and meticulously preparing your application, you can expedite the approval process and get your LLC up and running faster.