South Dakota Business Filing Tips

Business filing tips in SD

South Dakota does not require original signatures on your filings.

South Dakota does not have corporate or personal income tax, so if you make a bunch of money in SD, it will be tax free.  Unfortunately, we have a super aggressive department of revenue.  We have a 4% state sales tax on EVERYTHING.  So if you do work in South Dakota, and sell services to a South Dakota business or resident, you are supposed to charge them sales tax.  If you sell service to a North Dakota business or resident, you do not need to charge them sales tax.  It only applies to providing a service in SD for someone in SD.  All cities also have a sales tax, so you will have to check with the department of revenue as to how much tax you should be charging your clients.

Many people form South Dakota LLCs because of our no income tax rates.  As long as you’re not selling to South Dakota residents, this practice works out pretty well for a lot of people to avoid state income tax in South Dakota.  If you live in a state where there is personal income tax, you will ultimately probably still pay personal income tax there when you file your personal tax return though.

South Dakota isn’t a very big state.  As such, our state has decided to discourage companies from doing business here by charging an insanely high filing fee of $750 to get your out of state LLC or corporation registered to do business in South Dakota.

As with all filings, you will need a registered agent physically located in SD.  This is all we basically do.  All of our South Dakota business filing tips and the forms you file with the state are in your account with our info already on them.