Here are 5 steps needed to form a South Dakota Limited Liability Company (LLC):
Step #1 - Choose the LLC's Name
South Dakota law requires that an LLC's name include the words "Limited Liability Company" or "Limited Company," or the abbreviations "L.L.C.," "LLC," "LC," or "L.C."
Step #2 - File the LLC's Articles of Organization
A South Dakota LLC is created by filing Articles of Organization with the Secretary of State. These Articles of Organization must include:
- the LLC's name and address;
- the name and address of the LLC’s registered agent;
- whether the LLC will be member-managed or manager-managed;
- if the LLC is manager-manged, the managers' names and addresses must be provided;
- the name and address of each organizer;
- the LLC's duration, if not perpetual; and
- whether one or more of the members of the company are to be liable for its debts and obligations under § 47-34A-303(c).
Step #3 - Pay the LLC's Filing Fee
As of July 1, 2014, the filing fee in South Dakota is $150.00.
Step #4 - Appoint the LLC's Registered Agent
Every South Dakota LLC must have a registered agent for service of process in the state. This is the person or business entity that agrees to accept legal papers on the LLC’s behalf if it is sued. The registered agent must have a physical street address in South Dakota.
Step #5 - Prepare the LLC's Operating Agreement
Although an LLC Operating Agreement is not required in South Dakota, it is good practice to have one. The Operating Agreement serves as your LLC's "rule book" and provides necessary structure for the business.