Why incorporate in South Dakota? South Dakota offers tax benefits and ease of investment. This guide covers forming a corporation there.
Tax Advantages
South Dakota has no corporate or personal income tax, also no franchise or inventory taxes, except for some financial companies. This saves annual taxes for businesses.
Business Registration Requirements
All South Dakota businesses need a tax license, even online ones. Permits may also be needed for certain goods or services.
With low costs and taxes, South Dakota provides a good place for businesses. When forming one, the structure depends on your objectives. Compare corporations and LLCs to pick the right entity. A sole proprietorship is the simplest form, while incorporated structures must register with the Secretary of State.
Incorporation Costs
Incorporation filing fees start at $150. Expediting services cost an additional $50-$100. The required documents are the Articles of Incorporation and an initial report.
Changing Your Corporation’s Structure
You can change a corporation’s structure later with proper forms. There is no age limit when incorporating.
Use this guide to start your business and succeed in South Dakota. Conduct market research to assess demand. Sole proprietorships don’t need formal registration but still require licenses, permits, and a public name filing.