Forming an LLC in

South Dakota SD

Checked November 4, 2026 · How we score

Forming an LLC in South Dakota costs $150 to file and $55 a year, with no personal or corporate income tax.

Filing fee

$150

Articles of Organization

Annual fee

$55

per year, normalised

State income tax

top rate

Cost rank

#35

of 51, first-year fees

South Dakota LLC costs

South Dakota LLC fees
Filing fee	$150
Annual report / franchise fee	$55 Annual report: $55, due on the first day of your anniversary month.
First-year state fees	$205
Registered agent	Required (about $50–$300/year if you don't use your own address in the state)
Newspaper publication	No
Anonymous ownership	No
Processing time	3 days

South Dakota taxes for LLCs

Personal income tax (top)	0% No state personal income tax.
Corporate income tax	0% No corporate income tax (a bank franchise tax applies to financial institutions only).
State sales tax	4.2%
Franchise / gross receipts	No LLC franchise tax. State sales tax is 4.2% (temporary reduction through 2027); local taxes up to 2% apply.

A single-member LLC is a disregarded entity: profit flows to the owner's personal return. Federal income tax applies in every state. Non-US owners without US-source business income generally owe no US income tax but must file Form 5472 with a pro-forma 1120 each year.

Pros and cons

Why form in South Dakota

No personal or corporate income tax
Low $55 annual report
Strong trust and privacy laws

Watch out for

$150 formation fee is above average
Fewer startup resources than Delaware

Best for: Trust and asset-protection businesses · Founders who want no income tax and low upkeep · Dakota dynasty-trust structures

South Dakota LLC: common questions

How much does an LLC cost in South Dakota?

Filing the Articles of Organization in South Dakota costs $150. After that, expect a $55 annual report. Annual report: $55, due on the first day of your anniversary month. A commercial registered agent, if you need one, is typically $50–$300 a year extra.

Do I need a registered agent in South Dakota?

Yes. South Dakota requires every LLC to keep a registered agent with a physical street address in the state to accept legal and tax notices. You can act as your own agent if you live there, but non-residents and owners who want privacy usually pay a commercial agent, typically $50–$300 a year.

Can a non-US resident form an LLC in South Dakota?

Yes. South Dakota does not require US citizenship, residency or an SSN to own an LLC; you need a South Dakota registered agent address and then an EIN from the IRS (by fax or mail with Form SS-4 if you have no SSN). A foreign-owned single-member LLC must also file Form 5472 with the IRS every year, even with no US income. Check what South Dakota publishes, since member or manager names may appear in public filings. US-formed LLCs are exempt from FinCEN beneficial ownership (BOI) reporting after the March 2025 interim rule; only entities formed under foreign law and registered in the US must still report.

Does South Dakota have a state income tax?

No personal income tax on wages. No state personal income tax. Corporate: No corporate income tax (a bank franchise tax applies to financial institutions only).

Is South Dakota good for an LLC?

South Dakota has no personal or corporate income tax and a $55 annual report, which makes it cheap to maintain. It is especially popular for trust-related structures; for operating businesses, the $150 formation fee is higher than Wyoming's or New Mexico's.

Sources

South Dakota Secretary of State business filings

Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.