As stated by South Dakota law, a business incorporated as an LLC must include one of the following words after their business names: Limited Liability Company, Limited Company, LLC, L.L.C., LC or L.C.
The business name should also be unique and distinct from the names of other businesses filed before the Secretary of State. To check the availability, you can use the South Dakota Secretary of State’s business name search tool.
You can reserve your chosen business name for 120 days by submitting an Application for Reservation of Name before the South Dakota Secretary of State. You can file your application through postal mail along with a $25 filing fee.
The state of South Dakota requires all businesses to maintain a registered agent for their service of process notices.Your agent should be a resident individual or a business authorized by South Dakota to conduct business in the state.
He/she should fully and willingly accept the responsibility of accepting documents on your business’s behalf. Lastly, your South Dakota Registered Agent should also have a physical address within the state. Check out this list of registered agents in the state.
Your South Dakota LLC is formed by filing the Articles of Organization before the Secretary of State Department. The following information should be included in the form:
Submit the form through postal mail in the address indicated in the form. The filing fee is $150.
An Employer Identification Number (EIN) is a 9-series identification number more or less similar to a social security number in individuals. You are required by the Internal Revenue Service to obtain this requirement because it is their way of monitoring your business activities and state taxes.
Apart from this reason, it will be for your own good because the EIN is used for a variety of purposes. It is needed when you hire employees, open a business bank account, file for income tax returns and a lot more. You can get your EIN at IRS website completely free of charge.
Opening a business bank account in a credible banking institution is essential for healthy financial management. By having a separate bank account intended only for business, you will avoid spending personal money and vice-versa. You will also be able to track expenses better because everything is recorded in real time.
Recommended Resource: For the best types of business bank accounts, you can find out more if you read this roundup.
Now that you’re considered a South Dakota LLC, it’s time for you to complete these supplementary requirements so you can officially launch your business. After that, you can celebrate as much as you want. Congratulations!
Apart from being an excellent guide to start your South Dakota small business right, a business plan will also enable you to bag the right funding for your startup. Building your business with enough capital is essential if you want to see it grow smoothly. If you want to succeed, you have to invest in your business.
To help you get started in writing a solid business plan for your South Dakota LLC, below are some of the most credible resources that you can use.
LivePlan (25% off discount) one of the best business planning tools in the market today with over 35,000 subscriptions worldwide. LivePlan can help you write your business plan by providing you with text and video instructions as well as hundreds of sample plans.
Write a One Page Business Plan is a comprehensive guide that teaches you how to write a solid, one-page business plan for your South Dakota LLC.
The financial aspect of managing a business is one of the most challenging, this is the reason why you need to focus on your business finances well.
Apart from staying on top of your finances, you also need to comply with federal and state taxes to ensure smooth business operations. Check out the South Dakota Department of Revenue – Business Tax Division for more information on your tax obligations.
Recommended Resource: Xero an excellent accounting software that has all the right time-saving tools to help you in accounting and bookkeeping. Try Xero free for 30 days now!
By obtaining your South Dakota business licenses and permits, you agree to adhere with the standards and requirements set by the state for businesses who are operating within the state.
Before you start complying, make sure that you are well-informed of the licenses and permits applicable to the nature of business you’re running.
Recommended Resource: Since business licenses and permits are different from business to business, if you need assistance in compiling what is required for your South Dakota small business, here is a great package to help you. If you need an alternative guide you can check out this resource roundup made by the SBA.
An LLC is one of the most flexible business structures; you are basically free to run your business however you want, set the ownership status on your own and create corporate rules and regulations based on what you see is fit.
This is the reason why you need to draft an LLC Operating Agreement to make sure that your operational and financial relationships and ownership and corporate status are clearly outlined. You can use this Operating Agreement template and format it based on your needs.
These days, it is a must to have a business website. The latter allows you to reach your market population regardless of where they are in the world. It also enables you to freely develop strategies to relay your company branding and message. By having a business website, you become accessible to your customers 24/7.
Building a business website is easier because there are tools like WordPress which allows you to create a professional website in just minutes. Bluehost is also a website building software that features a one-click automatic WordPress installation and an available customer support service.
Resource for Getting Started: Learn how to build your business website now and read this step-by-step guide to assist you.
Note that this guide is made for the sole purpose of giving you information on how to form a South Dakota LLC. It should not be considered a legal document or a legal advice. If you want to know the specifics of starting an LLC, you can consult a lawyer for professional legal advice.