Decided to start your business in South Dakota? We have great news for you. Because South Dakota has the lowest business costs and no state income taxation, launching a new business here can be truly a dream come true. However, it’s always beneficial to educate yourself with laws and regulations that you are going to deal with when establishing a company. That’s why we will cover all the questions you will have related to the business licensing and registration, local and state requirements, costs and more.
Not all businesses need a business license to operate in South Dakota though some industries may require licensing to be obtained from the appropriate agencies in the Governor’s Office of Economic Development. If your business falls under the category of industries listed below you should apply to the specific department:
If you are unsure whether your business will require licensing or not reach out to the South Dakota Governor’s Office of Economic Development to find out more.
Remember that every state business license has different requirements so you need to check with above mentioned agencies before the application. Keep in mind that local cities and agencies may also have different licensing requirements you should be aware of. If your queries remained unanswered read this information sheet to learn more about certain licenses.
Once you choose the type of SD license you will need for your business, it’s time to prepare all the necessary paperwork. Make sure you will have in hand below-mentioned information prior to your license application:
The requirements of licensing may vary from city to city, so we recommend contacting your local municipality to learn more. You may also need additional permits or zoning requirements to run your business in the specific area.
As we discussed earlier South Dakota is one of the easiest states to establish a small business and expenses of licensing are very affordable. The costs of business licenses in this state will depend on the type of the industry. For instance, businesses which intend to work in bed & breakfast must register with the Department of Health and pay $38 one-time registration fee. Brokers or Dealers selling securities in South Dakota should apply to the South Dakota Department of Labor & Regulation Securities Division and pay $150 fee (valid for 1 year).
To form an LLC business in South Dakota you must file the Articles of Organization with the Secretary of State and pay $150 registration fee for online application or by mail ($150 filing fee + additional $15 for paper processing fee).
Once you select the type of legal entity you want for your business you need to register it with the South Dakota Secretary of State. When forming your business as LLC in the state here are the main steps you will go through: