7 Simple Steps
To secure and register your brand name it must be unique, not too similar to another registered name in SD, and shouldn’t contain any restricted wording. To check, conduct a free Business Entity Search through the state, and if there are potential trademark issues conduct another quick search using the TESS System through the U.S. Patent Office.
Keep in mind your LLC name should contain the words ‘Limited Liability Company’ or ‘Limited Company’. Abbreviations for these words like ‘L.C.’ or ‘L.L.C.’ are also acceptable. If needed, you can file a Reservation of LLC Name form that’s good for 120 days.
Filing Fee: $25
Your South Dakota Registered Agent is a sort of legal representative of your brand, but not in a lawyer or attorney-sense. It’s their job to officially receive/process important business documents like state filings, legal notices, tax forms, and so forth. This is why they have to be either a SD resident individual or a registered business entity and be reliable during all regular business days/hours.
That said, you can hire 3rd party professional and expect to pay up to $160/year, or get a registered agent free of charge when you start an LLC through services like IncFile or Incorporate.com. They handle this along with more depending on your startup package.
To be a legal business entity you must file Articles of Organization through postal mail with the Sec. of State. It’s a declarative document that discloses the basics of your brand for the public record including:
Filing Fee: $150
What’s an EIN, or Employer Identification Number? It’s almost exactly like a social security number but for businesses instead of flesh and blood individuals. You’ll need it to process taxes, set up business bank accounts, to legally hire employees and more. But don’t worry, it’s as easy as pie to get one these days.
First and foremost, make sure that your LLC’s bank accounts aren’t mingled with any others of any kind. It’s a huge mistake you can avoid with ease, okay? Secondly, don’t just assume where you bank personally is the best choice. Is it convenient? Sure, but there are tons of places to build your brand’s financial foundation and many of them are likely offering much better deals and incentives – local, state, and national banks.
An LLC Operating Agreement is an integral part of smooth operations. More than defining the financial and managerial relationships between owners of the LLC, it also helps to protect your company’s limited liability status and overrides state-default rules, which may not be applicable to your LLC at all.
You can create your LLC’s own document now with the help of an online Operating Agreement tool which can be easily customized to fit your specific needs.
Real talk: this is where a professional really comes in handy, especially if the nature of your business means a bit more in the red tape department. There may be a nice stack of paperwork, or just be a couple with corresponding fees. You get the idea, just be sure to do your homework.
If you’re doing this solo, bookmark the Sioux Falls district office of the Small Business Administration and the state’s Business Tax Division site because they’re likely going to be go-to sources. Also if you need additional help, consider professional Business License Research packages that handle the legwork.