Starting a business in South Dakota is a challenging and long process. There are many things that you need to consider, a lot of documents and paperwork that you need to prepare and several legal steps that you have to look into.
Incorporating your South Dakota business or not may have been one of your major considerations and now that you’re finally done with the process, you have to know that you’re not done just yet. Before you launch your startup and celebrate, you have to complete these five essential supplementary requirements first.
An Employer Identification Number (EIN) should be on top of your list when starting a business in South Dakota. Your EIN is a nine-series identification number that can be used when applying for a business bank account, hiring employees, filing for income tax returns and many other business transactions. It is also needed by the IRS to monitor your taxes and business activities.
To avoid any problems with the IRS, make sure that you obtain an EIN. Failure to do so may result in strict penalties, sanctions and even the revocation of your entity status. No one is exempted from this requirement, all businesses have to comply – even nonprofits.
Opening a business bank account is essential for many reasons: to separate personal and business finances, establish your business as a separate entity and accept checks and payments under your official business name.
While you’re at it, you may also want to process a business credit card. This will help you keep everything in check, tracking your expenses and recording your transactions in real time through your credit history.
To legally start your business in South Dakota you need to adhere to the standards set by the state by complying with business licenses and permits. Business licenses can vary depending on the size, nature and the entity type of the startup you’re running. Before completing your licenses, visit the local county office or city hall first.
Possible consequences if you fail to comply include large amounts of fines and heavy sanctions. You will also not be allowed to operate in the state or your status can be revoked. Process this requirement once and for all to avoid problems.
It is important that you understand tax responsibilities and tax regulations in South Dakota before launching your business. This is the reason why you must consult a tax advisor for counsel.
He will explain to you everything; from your obligations, to the process and documents that you need to go through during tax period and all the tax benefits and advantages that your business is eligible in.
Your responsibilities as a business owner doesn’t just after you comply with the aforementioned requirements. You still have a lot to do concerning your business. Staying compliant is important all throughout the existence of your business.
Every year, some business documents have to be obtained, licenses and permits have to be renewed, state and federal taxes have to be paid and reports have to be submitted to continue operating your South Dakota small business.
Learning how to incorporate in South Dakota and going through the entire process must have been difficult. To add to that, you had to comply with the above mentioned requirements. But now that you’re done, I’m sure it’s all worth it and all your hard work has paid off.
The aforementioned requirements are governed by different agencies and departments. Before you comply, you can visit your local county or city hall for more information and instructions. The appropriate offices in the state will be more than willing to help you out. You can also look into their websites for further assistance.
Once you get all these done, you can now start launching and operating your South Dakota small business. Remember that you have to stay compliant so you must constantly check for annual requirements and reports. Note that this article is not a legal documents or an alternative for legal advice. Good luck my friend!