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How to start a business in South Dakota

The fees, filing links and deadlines for forming and registering a business in South Dakota, with the official page for each step.

Last verified October 24, 2026 General information, not legal, tax or insurance advice. Each fee shows the date we checked it on the official page. Fees change, so confirm on the official page before you pay.

LLC filing fee: $150
LLC, first year (state fees): $150
$55 annual report due by January 31 next year
Corporation filing fee: $150
Annual report: $55
DBA filed with: Both
General state license: No
Newspaper notice: No

How much does it cost to form an LLC or corporation in South Dakota?

To form an LLC, file Articles of Organization with the South Dakota Secretary of State, Division of Business Services for $150 (checked Oct 24, 2026). You can file online. A corporation files Articles of Incorporation for $150 (checked Oct 24, 2026). That filing fee is not the whole bill: see what it costs in the first year.

What does an LLC really cost in its first year in South Dakota?

Filing fees are only part of the cost. Here is every state fee and minimum tax we found that a new LLC must pay to form and stay in good standing for its first year. Example: Single-member LLC filed online at standard speed, operating from day one with no employees; licenses every business must hold are counted, sales tax licenses are listed separately.

State fee	Cost	When	Checked
Articles of Organization filing fee	$150	at filing	Oct 24, 2026

First-year total: $150 in state fees.
$55 annual report due by January 31 next year Formation $150 online. The first $55 annual report, due January 31 of the following year, is shown below the total, not counted in it. Excludes the free sales tax and contractor's excise licenses, DBA names, city and county licenses, registered agent services and the optional $50 expedite fee. Filing on paper adds $15 to each filing.

After the first year: The $55 annual report is due every January 31 ($70 on paper, $55 more if late); LLCs formed from January 1, 2027 may pick their anniversary month instead. A DBA name renews every five years for $10.

Fees that apply only in some cases

State fee	Cost	When	Checked
Sales tax license If you have a physical presence in South Dakota or more than $100,000 in sales into the state, and sell taxable goods or services	$0	before making taxable sales	Oct 24, 2026
Contractor's excise tax license If you do construction work in South Dakota	$0	before starting work	Oct 24, 2026
Fictitious name (DBA) registration If you do business under a name other than the LLC's legal name; lasts five years	$10	before using the name	Oct 24, 2026
Reemployment assistance (unemployment) employer registration If you hire: tax is owed once you employ anyone in 20 weeks of a year or pay $1,500 in wages in a quarter	Note The Department of Labor and Regulation's pages do not mention a registration fee.	when you hire	Check when you file

Not included: city or county licenses, a registered agent service if you hire one, and optional extras such as expedited filing. Fees can change after the date shown; confirm on the official page before you pay.

Do I need to register a DBA in South Dakota?

If you do business under a name that isn’t your legal name, register it as an assumed name (DBA) with the both for $10 (checked Oct 24, 2026).

How to file a DBA

Does South Dakota require an annual report?

Yes. The fee is $55 (checked Oct 24, 2026). By January 31 each year, starting the year after formation (January 31, 2027 for an LLC formed in 2026). From January 1, 2027, new entities pick on their formation document either January 31 or their formation anniversary month, and can switch later with a change-of-filing-date form. Late reports cost $55 more; paper reports cost $70.

Initial report: No. (checked Oct 24, 2026) No initial report. The first filing after formation is the $55 annual report due January 31 of the next year.

Does South Dakota have a franchise or privilege tax?

None. South Dakota has no corporate income tax; a bank franchise tax applies only to banks and certain lenders.

How do I register for state taxes in South Dakota?

Register with the state revenue agency for sales tax and withholding, and open an unemployment insurance account once you hire your first employee.

Does South Dakota require a general business license?

No. South Dakota doesn’t issue one general business license; what you need depends on your activity and where you operate.

South Dakota has no general state business license; licenses come from individual agencies based on the activity. The Department of Revenue sales tax license is free and is needed by any business with a physical presence in South Dakota, or more than $100,000 in sales into the state in the current or prior year; contractors need a free contractor's excise tax license through the same application. Cities add 1% to 2% sales tax on top of the 4.2% state rate, and some cities and counties have their own licenses. No statewide local lookup was found.

What local licenses will I need in South Dakota?

Cities and counties set their own licenses, zoning and permits. Call your city or county clerk with your business type and address before you open.

Sioux Falls (city)
Largest city (Vintage 2025 estimate 213,748). No general city business license: the city says not all businesses need city licensing and lists specific types, such as alcohol, contractors, daycares, pawnbrokers, peddlers and mobile food, and tattoo artists, under Code of Ordinances section 110.026. The page lists no fees.

When do I need workers’ comp in South Dakota?

Optional for most private employers.

The Department of Labor and Regulation says no South Dakota law requires employers to carry workers' comp, but strongly recommends it; an uninsured employer can be sued in civil court by an injured worker. Farm and agricultural labor is excluded, and domestic workers are covered only if they work more than 20 hours a week for more than six weeks in a 13-week period. Certified independent contractors, such as some truck owner-operators, are excluded. A sole proprietor may elect coverage for himself or herself.

What else should I know about starting a business in South Dakota?

LLC and corporation articles cost $150 online; paper filings add a $15 paper fee ($165). The annual report costs $55 online or $70 on paper and rose $5 on July 1, 2025 (HB 1024). Under current law it is due by January 31 each year after the year of formation. HB 1102 (2026) takes effect January 1, 2027: entities formed from then on choose January 31 or their anniversary month on the formation document. A late annual report adds a $55 penalty. Expedited service is $50 extra. A DBA (fictitious name) costs $10, is filed online with the Secretary of State or on paper with any county register of deeds, and must be renewed every 5 years for $10. LLCs and corporations using a name other than their legal name must register that name too. No newspaper publication step appears on the state's formation forms or pages.

What to double-check for South Dakota?

A few details below aren't spelled out on the state's own pages. Confirm them on the official page before you file.

Note The late fee for an annual report is $55 in the statute, fee schedule and paper forms, but the Secretary of State's online annual report instructions say $50. https://sdlegislature.gov/api/Statutes/47-34A-212.html
Note A new law (HB 1102) takes effect January 1, 2027 and lets entities choose a January 31 or anniversary-month annual report date on their formation document. It does not say which date applies to an LLC formed in 2026 that made no choice, whose first report falls after the law starts; check your due date in the Secretary of State's business search. The Secretary of State's pages and articles form do not yet show the choice. https://mylrc.sdlegislature.gov/api/Documents/306277.pdf
Note Confirm this on the official page before you rely on it.
Note The Department of Labor and Regulation says no law requires employers to carry workers' comp, yet SDCL 62-5-1 says covered employers "shall secure the payment of compensation." Ask the department before going without coverage. https://dlr.sd.gov/workers_compensation/default.aspx
Note The Department of Labor and Regulation says all newly established businesses must register with its Reemployment Assistance Tax Unit, though the tax applies only once you have employees; no page says whether an LLC with no employees must register. Call 605.626.2312. https://dlr.sd.gov/ra/businesses/registration.aspx
Note The state's pages do not say whether LLC members or corporate officers may elect workers' comp coverage for themselves; only sole proprietors, partners and shareholders are mentioned. https://dlr.sd.gov/workers_compensation/coverage_independent_contractor.aspx

What to do next

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Sources

Official pages checked on October 24, 2026.