[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.