Business Formation / LLC South Dakota

How Much Does It Cost to Start an LLC in South Dakota?

🏁 Initial Formation Costs

• Articles of Organization:

  • $150 online filing fee.

  • $165 by mail (includes an extra $15 paper processing fee) 

• Name Reservation (optional):

  • Typically $25 (to hold the name for up to 120 days) 

• DBA (Trade Name) Filing (optional):

  • Around $10, depending on the type or municipality Registered Agent Service (optional):

  • $0 if you serve as agent yourself, or $100–$300/year for a commercial agent 

• Operating Agreement (optional):

  • Costs range from DIY templates (free) to $50–$200+ for attorney-prepared agreements 

• EIN (Employer Identification Number):

  • $0—free through the IRS.

🔄 Ongoing & Annual Fees

• Annual Report Fee:

  • $55 for online filing as of July 1, 2025.

  • $70 via mail (includes $15 processing). 

  • Note: Filing must be done annually on the first day of your anniversary month 

• Late Filing Fee:

  • $50 penalty for delinquency. Continued non-filing may lead to dissolution 

• Registered Agent:

  • $0–$300/year, based on service type.

• Business Licenses & Permits:

  • Varies by industry and locality; generally modest 

💰 Estimated Cost Summary

📌 Key Takeaways

1. Low formation cost: $150 online, $165 by mail 

2. Annual report is required with a $55 online fee, rising to $70 for paper submissions .

3. No state income or franchise tax, but federal, payroll, and sales taxes may still apply 

4. Other fees – Name reservation, DBA, and agent services allow flexibility based on your needs.

✅ Recommended Next Steps

1. Check and optionally reserve your LLC name (~$25).

2. File your Articles of Organization online ($150).

3. Designate or hire a Registered Agent.

4. Draft an Operating Agreement (DIY or professional).

5. Obtain your free EIN.

6. File your Annual Report every year (due anniversary month).

7. Add any necessary permits or trade name registrations as needed.

🛑 What additional costs am I responsible for?

In addition to our fee, you will be potentially responsible for the costs of some or all of the items below if applicable.

1. Licenses 
   
2. Filing Fees
3. Reports
4. Name Reservations
5. Articles of Organization