Form a South Dakota LLC - Form an LLC in South Dakota – Sun makes South Dakota LLC formation easy!

Sun Document Filings can form a South Dakota LLC fast! Focus on forming your South Dakota LLC business plan and let us form your South Dakota LLC. Sun can form a South Dakota limited liablity company or register a South Dakota LLC correctly the first time. Let us make the South Dakota LLC formation process quick and painless for you by preparing and filing a South Dakota LLC Articles of Organization with the South Dakota Secretary of State on your behalf. Your time is better spent forming your South Dakota LLC business plan for a successful South Dakota LLC. Protect your assets and form a South Dakota single member LLC or a South Dakota multi-member LLC.

To form a South Dakota LLC online, click here to see the costs and time turnaround options for a South Dakota LLC. Questions? 888 595-2747

How do I form a South Dakota LLC?

There is no need to ask, "How do I form a South Dakota LLC?" because we know how to form a South Dakota LLC from start to finish. First, we check LLC name availability with the South Dakota Secretary of State. Second, we prepare a South Dakota LLC Articles of Organization. Third, before we form a South Dakota LLC, we verify that the Articles of Organization are free of errors. Fourth, we will register a South Dakota LLC by filing a South Dakota LLC Articles of Organization with the South Dakota Secretary of State. Fifth, after the South Dakota Secretary of State files a South Dakota LLC Articles of Organization, we will return the filed document to you. We make forming a South Dakota LLC simple and fast!

What is a South Dakota LLC?

A South Dakota LLC or South Dakota limited liability company is a type of business entity that is independent of its owner(s). A South Dakota LLC can consist of one or more members which may be individuals, partnerships, trusts, estates, associations, corporations, other limited liablity companies (LLC), or other business entitites as allowed by the state of formation. The members of a South Dakota LLC are afforded limited liablity similar to shareholders of a corporation and are allowed pass-through taxation benefits that is comparable to a partnership. Forming a South Dakota LLC can be the best of both worlds.

What are the advantages of forming a South Dakota LLC?

A South Dakota LLC or South Dakota Limited Liability Company combines the advantages of a corporation and a partnership. The members of a South Dakota LLC are allowed limited liability protection of a South Dakota corporation with the pass-through taxation of a partnership. All personal assets of the members are protected from creditors for debt and from judgments against a South Dakota LLC. Provided a member did not use their personal assets to secure loans or personally guarantee the debt for a South Dakota LLC. Unlike a Sub-Chapter S Corporation whose shareholders are limited to 75, there is no limit to how many members a South Dakota LLC can have. For the flexibility and taxation benefits, LLC’s have become very desirable to business owners.

How do I decide if I should form a South Dakota LLC or South Dakota S corporation?

- Most business owners that decide to form a South Dakota limited liablity company (LLC) do so because of its flexibility in taxation.
- A South Dakota S corporation eliminates double taxation but it lacks the flexibility of a South Dakota LLC in distribution of income to the owners.
- A South Dakota LLC can have several classes of membership interests and can consist of one or more members (in most states) which may be individuals, partnerships, limited partnerships, trusts, estates, associations, corporations, foreign nationals, other limited liability companies or other business entities.
- A South Dakota S corporation can only be owned my individuals, issue only one type of stock, and is limited to no more then 75 shareholders.
- For more information, view our Entity Comparison Table. The Entity Comparison Table will show the advantages and disadvantages of different types of business entities.
- If you decide to form a South Dakota S corporation instead of forming a South Dakota LLC, click here for incorporation services.

To form a South Dakota LLC online, click here to see the costs and time turnaround options for a South Dakota LLC.

Who controls or manages a South Dakota LLC?

A South Dakota LLC is owned and organized by its members. Members to a South Dakota LLC are the equivalent as partners are to a partnership or shareholders in a corporation. Members have the option of managing a South Dakota LLC themselves or if they prefer, they can choose to elect managers to operate a South Dakota LLC. Managers are agents of the company and have the authority to bind the company to third parties. The flexibility in management is one of the reasons LLC’s are so appealing.

How many people or business entities are required to form a South Dakota LLC?

In most states, only one entity or one person is required to form a South Dakota LLC. In terms of taxation, the IRS does recognize single member South Dakota LLC’s and allows pass-through taxation. Although the Internal Revenue Service allows one member South Dakota LLC’s with pass-through taxation, some states may not afford equal treatment to single member South Dakota LLC’s. To avoid any surprises, we recommend that you speak with your accountant or tax preparer to find out how the tax laws in your state would affect your single member South Dakota LLC prior to organization.

What titles are owners in a South Dakota LLC ?

A South Dakota LLC is allowed to have the titles member(s), manager(s), or manging members.

How is a South Dakota LLC taxed ?

At the Federal Level -

A South Dakota LLC may be classified for federal income tax purposes as a sole proprietorship (referred to as an entity to be disregarded as separate from its owner), partnership or a corporation. If a South Dakota LLC has only one owner, it will automatically be considered to be a sole proprietorship (referred to as an entity to be disregarded as separate from its owner), unless an election is made to be treated as a corporation. If a South Dakota LLC has two or more owners, it will automatically be considered to be a partnership unless an election is made to be treated as a corporation. If a South Dakota LLC does not elect its classification, a default classification of partnership (multi-member South Dakota LLC) or sole proprietorship (single member South Dakota LLC) will apply.

At the state level -

Your South Dakota LLC may be treated differently for tax purposes then at the federal level. Since each state is different, we recommend that you speak to your accountant or tax preparer who specializes in South Dakota tax law for specific tax questions.

How do I obtain an EIN or Employer Identification number or Tax Payer ID number for my South Dakota LLC?

After we complete a South Dakota LLC formation on your behalf, we offer supporting services. We can obtain an employer identification number (an EIN) for your South Dakota LLC. An EIN is required to open a bank account, hire employees, and to start business credit for your South Dakota LLC. If you purchase our premium package, EIN obtainment is included for your South Dakota LLC.

How do I obtain or prepare a South Dakota LLC operating agreement?

Often times, you can hire an attorney or paralegal to prepare the operating agreement for your South Dakota LLC but that could be very costly. If you purchase our premium package, Sun will prepare the initial operating agreement (standard language) for your South Dakota LLC and include meeting minutes (MS Word format) that you can prepare as needed.

To form a South Dakota LLC online, click here to see the costs and time turnaround options for a South Dakota LLC.

What is a South Dakota LLC operating agreement and why is it so important for my South Dakota LLC?

A South Dakota LLC operating agreement serves as a blueprint for your South Dakota LLC. The operating agreement contains the rights, privileges, and powers of the members and managers. A South Dakota LLC operating agreement will contain the names and addresses of each member and manager. A South Dakota LLC operating agreement will specifiy the percentage each member owns of a South Dakota LLC. A South Dakota LLC operating agreement will also indicate the capital contribution of each South Dakota LLC member. A South Dakota LLC operating agreement normally outlines how it can be amended or changed at a future date. Often there is mention of how long a South Dakota LLC is allowed to operate, the date of dissolution, or if a South Dakota LLC has perpetual existence until the members agree to dissolve a South Dakota LLC.

Another important part of a South Dakota LLC operating agreement is to create "rules" on how a South Dakota LLC can open a bank account, take out loans, write checks, enter into contracts, obtain business credit, and issue membership certificates to its members. As a South Dakota LLC member, the most important reason for an operating agreement besides that most states require one by law, is that it protects each members' personal interest, capital contributed, and a detailed outline of the rights and privledges each member is afforded.

What is a South Dakota LLC seal?

After a South Dakota LLC prepares its operating agreement or has Sun prepare a South Dakota LLC operating agreement, a South Dakota LLC will need a South Dakota LLC seal. What is a South Dakota LLC seal? A South Dakota LLC seal is a handheld device that imprints paper with a South Dakota LLC's name, state of formation, and date a South Dakota LLC was formed. Many banks and other lending institutes require a South Dakota LLC to possess and use a South Dakota LLC seal on business documents or loan papers. All South Dakota LLC kits that Sun sells contain a handheld South Dakota LLC seal embosser.

What is a South Dakota LLC kit?

A South Dakota LLC kit is typically a hardbound binder that contains all of a South Dakota LLC's important documents such as the South Dakota Articles of Organization, operating agreement, and meeting minutes. All of the South Dakota LLC kits that Sun sells include the South Dakota LLC's name hot stamped (professional imprint of the South Dakota LLC's name) on the spine of the kit. Most South Dakota LLC kits come with a slipcase to keep the binder safe. Some South Dakota LLC kits are made with a slipcase built in. The choice is yours.

Another important part of a South Dakota LLC kit is the membership certificates. All of the South Dakota LLC kits that Sun sells contain 20 custom membership certificates that include the South Dakota LLC's name, date and jurisdiction of formation, and the title of member (s) or manager (s) below the signature lines. If you have already formed your South Dakota LLC, you can order a South Dakota LLC kit by clicking here. We have a selection of high quality South Dakota LLC kits that come in array of styles and colors. Best of all, standard shipping is always free.

Now that you have formed your South Dakota LLC, obtained your EIN from the IRS, prepared the South Dakota LLC operating agreement, issued membership certificates, and used your South Dakota LLC seal embosser, it is time to verify which local city and/or county tax licenses your South Dakota LLC business will need. The best place to start is your city hall or county recorder's office. Take the time to verify your area's business licensing requirements. For those of you who plan to run your South Dakota LLC out of your home, check with your city or county to find out if a work at home permit is required. Once your licensing requirements are met, it is time to start operating your South Dakota LLC.

To form a South Dakota LLC online, click here to see the costs and time turnaround options for a South Dakota LLC.

We wish you the best with your South Dakota LLC business venture! Questions? 888 595-2747