All states › South Dakota
Every step to open an LLC in South Dakota and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: Secretary of State · Department of Revenue · Department of Labor and Regulation (Reemployment Assistance, Wage and Hour, Workers' Compensation).
This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.
Customize this checklistPopular South Dakota business types:
Do this first. The state tax and payroll accounts ask for your registration details.
Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.
This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.
Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.
Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.
If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.
File Articles of Organization (or the state's equivalent) online through SOS Enterprise online filing (sosenterprise.sd.gov).
You need a registered agent with a street address in South Dakota to receive legal papers and state notices. Use a registered agent service if you have no one local.
DBAs (fictitious business names) are filed online with the Secretary of State.
Foreign registration is expensive here ($750 online), so out-of-state companies should budget for it.
South Dakota has no personal income tax, so there is no state withholding account. If you sell taxable goods or services, apply for a sales tax license with the Department of Revenue's online Tax License Application.
Cities may levy municipal sales and use taxes collected through the Department of Revenue. No local income or payroll taxes confirmed.
Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.
South Dakota calls it a Sales Tax License. Register with the South Dakota Department of Revenue through Tax License Application (online) before you make your first taxable sale in South Dakota. You'll collect tax from customers and send it to the state.
Give your supplier South Dakota Exemption Certificate so you don't pay tax on inventory you'll resell. Certificates do not expire unless the buyer's information changes; the state suggests updating them every 3 to 4 years. Keep certificates your own customers give you, too.
Out-of-state sellers must register once sales into South Dakota pass $100,000 (previous or current calendar year), even with no office here.
The 4.2% state rate is a temporary cut that expires June 30, 2027, so the state rate returns to 4.5% on July 1, 2027.
Applies once you pay W-2 employees who work in this state.
Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.
Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.
Register once you pay wages to employees working in South Dakota. Reports and payments are usually quarterly.
Required at Not required by law for any employer. South Dakota does not require workers' comp, but DLR strongly recommends it. An uninsured employer can be sued in civil court by an injured worker. Coverage is bought from private insurers or by approved self-insurance.
Report new hires and rehires not paid in the past 30 days, within 20 days of the first day of work.
No state income tax, so no reciprocity agreements are needed.
South Dakota's wage payment rules:
$11.85 an hour.
No state paid sick leave law for private employers.
No state retirement savings program or mandate for private employers.
South Dakota doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.
Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.
South Dakota's minimum wage rises from $11.85 to $12.30 on January 1, 2027. The tipped cash wage rises to $6.15.
Workers' comp is optional in South Dakota, but without it an injured employee can sue you directly. Most employers buy a policy or self-insure.
When a worker leaves, give them the Reemployment Assistance Employee Notification individually. You must also post a safety-on-the-job notice.
The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.
File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).
Recurring deadlines. Put these on your calendar now.
FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.
A 2026 law (HB 1102, signed March 12, 2026) lets entities file annual reports in their anniversary month or by January 31, starting January 1, 2027. You can switch dates with a change-of-filing-date form if in good standing.
Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.
No state corporate or personal income tax, so no state entity income or franchise tax return.
File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.
Returns are due the 20th of the month after the period, and electronic payments are due the 25th; the state assigns monthly or less frequent filing. File a zero return if you had no sales; skipping it can bring penalties.
Recurring dates for South Dakota and federal filings. A payroll service handles most payroll lines, but you should know they're happening.
| When | What | Filed with |
|---|---|---|
| Jan 1 | Inflation-adjusted minimum wage takes effect ($12.30 in 2027) | South Dakota |
| Quarterly | File Reemployment Assistance wage report and pay tax | South Dakota |
| Anniversary month (or Jan 31 from 2027 if chosen) | File Secretary of State annual report | South Dakota |
| Assigned schedule | Sales tax return (file a zero return if no sales) | South Dakota |
| Jan 31 | W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941 | IRS / SSA |
| Jan 31 | 1099-NEC to contractors and IRS | IRS |
| 15th monthly | Federal payroll tax deposit (monthly depositors) | IRS |
| Apr 30 · Jul 31 · Oct 31 | Form 941 for the quarter | IRS |
| Jul 31 | Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension) | DOL (EFAST2) |
Last verified: October 27, 2026
The South Dakota state filing fee for an LLC is $150 online ($165 paper). That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.
You need to register to collect sales tax in South Dakota if you sell taxable products or services there. The state rate is 4.2%, and local taxes may add to it. Registration cost: Free.
Out-of-state sellers must register once their sales into South Dakota pass $100,000 a year. Having an employee or office in South Dakota also creates nexus right away.
Recurring filings include: file the Annual Report; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.
This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.
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