How to Start an LLC in South Dakota (2026)

Full transcript

0:00 The short answer

Dan To start an LLC in South Dakota, you file Articles of Organization online with the South Dakota Secretary of State, and the fee is $150.

Maya Can I still file on paper?

Dan You can, but it's $165 on paper. Online is cheaper.

Maya This is The Business Formation Podcast. Today, South Dakota for 2026: six steps, every fee, and the three best ways to have it filed for you. Let's start with the name.

0:30 Step 1: Choose a name

Dan End your name with limited liability company, limited company, or an abbreviation like LLC or LC.

Maya And what makes a name acceptable?

Dan It has to be distinguishable from the names on the Secretary of State's records.

Maya How do I find out?

Dan The state has a free name availability tool. Search there first.

Maya What if I want to hold a name for a few months?

Dan A reservation is $25 and lasts 120 days.

0:59 Step 2: Name a registered agent

Maya Who can be our agent in South Dakota?

Dan There are two kinds. A noncommercial agent is a South Dakota resident, or a business registered in the state. The other kind is a commercial registered agent, registered with the Secretary of State.

Maya What does the address have to look like?

Dan The agent needs both a physical address and a mailing address in South Dakota.

Maya I'm Maya, by the way, here with Dan.

Dan Good to be here, Maya. One thing to remember is that the agent's address is public.

Maya And if we switch agents later?

Dan Changing agents is $10 online.

1:34 Step 3: File the Articles online

Maya Where do I file?

Dan Business Services Online, run by the Secretary of State. The fee is $150.

Maya What happens after I pay?

Dan Online filings are processed immediately. Once payment goes through, you can download your certificate.

Maya Right away?

Dan Right away. Paper is slower, averaging one to three business days, and the paper fee includes $15 for processing.

Maya So who's named on the form?

Dan The Articles list the organizers, not the owners.

2:05 Step 4: Write an operating agreement

Maya Does South Dakota collect it?

Dan No. It's an internal document, and it isn't filed with the Secretary of State.

Maya So why bother?

Dan Because it settles the questions later. Who owns what, how profits are split, who makes decisions, and what happens if a member leaves.

Maya Put it in writing.

Dan Yes, in writing.

2:26 Step 5: Get a free EIN

Maya What about the federal number?

Dan An EIN. You apply free with the IRS at IRS.gov, after the state files your Articles.

Maya How fast is it?

Dan If the online application is approved, the number is issued right away.

Maya And the ownership report?

Dan You can skip it. FinCEN no longer requires one from U.S. companies.

2:49 Step 6: File the annual report

Maya What does South Dakota want after that?

Dan An annual report, due by the first day of your anniversary month every year. It's $55 online.

Maya Give me an example.

Dan Say you form in June. Your first report is due June 1 of the next year.

Maya And if I'm late?

Dan Two months past due, the LLC goes delinquent, and there's a $55 late fee.

Maya What if I stay delinquent?

Dan The state can administratively dissolve the LLC. Reinstatement is $150, and you need a tax clearance certificate.

Maya Is the paper version more?

Dan It's $70, so file online.

3:27 What it costs

Maya Give me the do-it-yourself total.

Dan $150 to form the LLC online. Then $55 a year for the annual report. The EIN is free.

Maya And the optional parts?

Dan A name reservation is $25, and an agent change is $10.

Maya So years one and two, with the first report?

Dan $205 across the first two years.

3:51 A new due date coming in 2027

Maya Anything changing on the report?

Dan Starting January 1, 2027, new entities can choose a January 31 due date instead.

Maya Instead of the anniversary month?

Dan That's what the statute says. It's SDCL 59-11-25, and it applies to new entities.

Maya So how do I plan around that?

Dan Check the due date on the Secretary of State's site when you form. Don't assume.

4:16 Noncommercial or commercial agent

Maya Let me come back to the two agent types. When does each make sense?

Dan A noncommercial agent can be you or a friend, if that person lives in South Dakota.

Maya And the catch?

Dan The address is public, and papers show up at that address. A commercial agent handles that for you.

Maya Does the Secretary of State keep a list?

Dan Commercial agents register with the Secretary of State, so they're set up for it.

Maya What would I need from the agent?

Dan A physical address and a mailing address in the state, same as anyone.

4:48 Online or paper, side by side

Maya Compare the two ways to file.

Dan Online is $150, processed immediately, and you download the certificate after you pay.

Maya And on paper?

Dan $165, which includes the $15 processing fee, and it averages one to three business days.

Maya Same for the annual report?

Dan Yes. $55 online, $70 on paper.

Maya So online wins every time.

Dan On price and on speed, yes.

5:20 Staying out of delinquency

Maya Walk me through how an LLC goes wrong.

Dan You miss the first day of the anniversary month. Two months later, the LLC is delinquent.

Maya And the cost of that?

Dan A $55 late fee on top of the $55 report.

Maya And beyond that?

Dan Continued delinquency can lead to administrative dissolution. Then it's $150 to reinstate, plus the tax clearance certificate.

Maya So mark the date.

Dan Put it in your calendar the day you form.

5:48 Your first-year checklist

Maya Give me the order of operations.

Dan Search the name. Choose your agent. File the Articles online for $150.

Maya Then?

Dan Write the operating agreement, get your EIN, and mark the first day of your anniversary month for the $55 report.

6:05 The 3 best ways to file in South Dakota

Maya What if I'd rather someone else handle all this?

Dan Here are the three best ways to file in South Dakota. Number one, our pick, is Mainstay Filing, $199 a year plus the state fee. With the $150 state fee, checkout comes to $349.

Maya What's included?

Dan Your Articles filed, your EIN application, and your registered agent every year. It renews at the same $199.

Maya And the report?

Dan Mainstay files your annual report in your anniversary month every year. You pay only the $55 state fee.

Maya Number two?

Dan SD Registered Agent.org. It prepares and files your Articles for $199 plus the state fee, also $349 at checkout. The first year of agent service is free, then $99 a year.

Maya And three?

Dan South Dakota Registered Agent.co. Same offer: $199 plus the state fee, first year of agent service free, then $99 a year.

Maya How do I choose?

Dan If you'll file the annual report yourself, numbers two and three cost less from year two, at $99 a year for the agent alone. The $55 state fee is the same either way.

7:31 Three years of service fees

Maya Give me the three-year view.

Dan Mainstay is $199 a year, so $597. Number two or three is $199 in year one, then $99 in each of the next two years, for $397.

Maya That's a $200 gap.

Dan With Mainstay, that gap pays for your annual report to be filed for you each year.

7:56 Recap

Maya Can you recap?

Dan Choose a name with LLC in it, name a noncommercial or commercial registered agent, file the Articles online for $150, write an operating agreement, get your free EIN, and file your $55 annual report in your anniversary month each year.

Maya The links to all three services and every official source are in the show notes. Thanks for listening to The Business Formation Podcast, and good luck with your new South Dakota LLC.