Menu

Form Your South Dakota LLC

State filing fee: $150 Processing: 3-5 business days

Form Your South Dakota LLC for Tax-Advantaged Business Operations

South Dakota offers excellent LLC formation benefits with no state income tax, no corporate income tax, and quick processing times. Known for business-friendly policies and trust laws, South Dakota is increasingly popular for holding companies and asset protection strategies.

No state income tax
No corporate income tax
$150 filing fee
3-5 day processing time

Compare Top 5 LLC Formation Services

ServicePriceProcessing TimeRegistered Agent
ZenBusiness
Best Overall Value
$0
+ state fees
7-10 days
Expedited: 1 day
$199/yr
Bizee
Fastest Formation
$0
+ state fees
3 weeks
Expedited: 1 day
Free Year 1
Then $119/yr
Inc Authority
Free Formation
$0
+ state fees
7-10 days
Expedited: 2 days
Free Year 1
Then $119/yr
LegalZoom
Best for Legal Support
$0
+ state fees
5-14 days
Expedited: 1 day
$249/yr
Rocket Lawyer
Legal Documents
$99.99
+ state fees
5-7 days
Expedited: Not available
$149/yr

Top 3 Recommended Services for South Dakota

Best Overall
#1
ZenBusiness logo
$0 + state fees
★★★★⯨ 4.9/5

ZenBusiness

Entrepreneurs who want comprehensive support and compliance tools at an affordable price

ZenBusiness stands out as our top pick for LLC formation services thanks to its unbeatable combination of value, features, and support. With formation starting at $0 plus state fees, you can rest easy with their worry-free compliance service, award-winning customer support, and 100% accuracy guarantee. The Pro and Premium packages add even more value with 1-day processing, an employer ID number, operating agreement, and services to get your business online like domain name registration, AI business website builder, and more.

Pros:

  • Starter package is $0 plus state fees
  • Registered agent and compliance services
  • Free worry-free compliance for 1 year
  • Fast 1-day processing time available
  • 100% accuracy guarantee
  • Award-winning customer support

Cons:

  • Some features require upgraded plans
  • More expensive Registered Agent service
Fastest Formation
#2
Bizee logo
$0 + state fees
★★★★⯨ 4.6/5

Bizee

Budget-conscious startups needing fast formation

Bizee (formerly Incfile) offers lightning-fast LLC formation with their $0 package. They're perfect for entrepreneurs who need to form their LLC quickly and affordably. With same-day processing in many states and a year of free registered agent service, Bizee provides exceptional value for basic LLC formation needs.

Pros:

  • $0 basic formation package
  • Same-day processing available
  • Free registered agent for first year
  • Compliance alerts included
  • Dashboard for document management
  • Free business tools and templates

Cons:

  • Operating agreement not included in basic package
  • Limited customer support hours
Best for Branding
#3
Tailor Brands logo
$49 + state fees
★★★★☆ 4.3/5

Tailor Brands

Creative businesses wanting formation plus branding

Tailor Brands combines LLC formation with comprehensive branding tools. Their unique approach includes AI-powered logo design, website creation, and marketing materials. Perfect for creative entrepreneurs who want to establish their brand identity alongside their legal structure.

Pros:

  • Includes logo design and branding
  • Website builder included
  • Business card designs
  • Mobile app available
  • Operating agreement included
  • EIN service included

Cons:

  • No rush processing available
  • Monthly subscription required
  • Customer service via chat/email only

South Dakota LLC Formation Costs

South Dakota LLC Cost Breakdown

State Filing Fee
$150
Annual Report Fee
$50
Total First Year Cost $200

Additional Costs to Consider:

  • Formation service fees: $0 - $299 (depending on provider)
  • Registered agent service: $99 - $299/year
  • EIN from IRS: Free (or $99+ if using a service)
Standard Processing Time: 3-5 business days

Frequently Asked Questions

South Dakota offers competitive LLC formation costs with excellent tax benefits:
  • State filing fee: $150
  • Annual report fee: $50 (due by the first day of birth month)
  • No franchise tax or corporate income tax
  • Registered agent: Required (typically $99-$299/year)
The total first-year state cost is $200, but the lack of state income tax provides significant ongoing savings.
South Dakota provides exceptional tax benefits:
  • No state income tax on individuals or businesses
  • No corporate income tax
  • No personal property tax on business inventory
  • No inheritance tax
  • Very low sales tax (state portion only 4.2%)
These tax advantages make South Dakota attractive for businesses seeking to minimize tax obligations.
South Dakota offers quick processing:
  • Standard processing: 3-5 business days
  • Online filing system available
  • Same-day processing available for additional fee
  • Electronic document delivery
South Dakota's efficient Secretary of State office provides some of the fastest processing times in the nation.
South Dakota LLCs have straightforward annual obligations:
  • Annual report: $50 fee, due by the first day of the anniversary month
  • Registered agent: Must maintain continuously
  • Basic company information updates required
  • No state tax returns required for LLCs
The annual report can be completed online and requires minimal information updates.
South Dakota has gained recognition for several features:
  • Strong trust laws and privacy protections
  • No state income tax reduces ongoing costs
  • Stable political and legal environment
  • Growing financial services sector
  • Favorable business formation laws
These factors make South Dakota increasingly popular for holding companies and wealth management strategies.
South Dakota requires all LLCs to maintain a registered agent:
  • Must have a physical South Dakota address (no P.O. Boxes)
  • Must be available during regular business hours
  • Can be yourself if you have a South Dakota address
  • Can be any person, corporation, or LLC
  • Professional services typically cost $99-$299 annually
The registered agent receives official documents, legal notices, and correspondence from the state.
South Dakota doesn't require a written operating agreement, but it's highly recommended. An operating agreement provides:
  • Clear member ownership structure and responsibilities
  • Management procedures and decision-making authority
  • Profit sharing and operational guidelines
  • Liability protection by establishing LLC separateness
  • Customized governance beyond default state laws
Without an operating agreement, South Dakota's default LLC statutes will govern your business operations.

Ready to Start Your South Dakota LLC?

Join thousands of entrepreneurs who've successfully formed their LLCs

Start Your LLC Today →

Formation starting at $0 + state fees