South Dakota C Corporation Formation Services

Start setting up your South Dakota C Corporation now - without any obligation. Save all of your incorporation information until you’re ready to incorporate.

MaxFilings competitive pricing is simple and straight forward - it includes all South Dakota fees and other charges. There are absolutely no “hidden charges” to surprise you later. South Dakota C Corporation is recognized by the law as an individual entity, separate from its shareholders (owners), and many times treated as a human being.

South Dakota C Corporation shareholders enjoy limited liability for the debts, obligations and liabilities incurred by the business as well as liability stemming from possible legal action. Protection of shareholders’ personal assets is one of the major reasons South Dakota business owners choose to incorporate. Normally, shareholders cannot lose more than the amount they invested in the corporation. If the corporation goes bankrupt, the shareholders will not be liable for its debts. Should someone sue the corporation and the corporation is found liable, they can take the corporation's property to satisfy the judgment but if that property does not satisfy the judgment, they will not be able to take a shareholder's personal assets, i.e. home, car, or bank account. There are exceptions to shareholders’ limited liability to keep in mind. For example an exception to a shareholder's limited liability occurs when the corporation has recklessly harmed people or has been used to perpetuate a fraud.

South Dakota C Corporation Taxation

South Dakota C Corporation shareholders do not report any of the business income and expense on their individual tax return. The corporation files tax returns and pays its income taxes (at generally lower tax rates than would individuals) while the individual shareholders report and pay personal income taxes only on monies paid them by the corporation.
It should be noted that shareholders are required to pay personal income taxes on income from dividends paid by a C Corporation even though income taxes have previously been paid by the corporation. This leads to what is commonly referred to as “double taxation”.

Why Form South Dakota C Corporation?

South Dakota C Corporations best serve owners who want the limited liability, a more formal business structure, the ability to reduce overall income taxes and accumulate assets in the business, and ways to more easily raise capital.
Official documents must be filed with South Dakota in order to form South Dakota C Corporation. MaxFilings can do this for you. Start setting up your South Dakota C Corporation now >>

Some Points to Consider When Forming South Dakota C Corporation

  • Official documents must be filed with South Dakota in order to form South Dakota C Corporation and  state filing fees must be paid
  • South Dakota C Corporation is considered by the law to be an individual entity, separate from its owners (shareholders)
  • South Dakota C Corporation can have any number of shareholders
  • South Dakota C Corporation is considered by the law to be an individual entity, separate from its owners (shareholders)
  • South Dakota C Corporation can have any number of shareholders
  • You must hold and keep minutes that document shareholders’ and board of directors’ meetings
  • There can be some limitations as to the kind of business South Dakota C Corporation is allowed to conduct

Limited Liability

  • South Dakota C Corporation shareholders normally enjoy limited liability and can lose no more than the amount they invested in the corporation
  • South Dakota C Corporation shareholders cannot normally be held liable for legal judgments against the corporation or for any of the corporation’s debts or obligations
  • Protection of South Dakota C Corporation shareholders’ personal assets is one of the major reasons business owners choose to incorporate in South Dakota  
  • There are exceptions to shareholders’ limited liability where shareholders can be held liable

Raising Capital

  • South Dakota C Corporation can raise additional capital easier than some of the other types of business since you can issue and sell stock or a variety of other financial instruments as evidence of interest in the corporation
  • The sale of stock is sometimes subject to South Dakota and federal securities laws
  • Ownership can be easily transferred by selling stock in the corporation


Taxation

  • South Dakota C corporations are normally audited less frequently than sole proprietorships and partnerships
  • South Dakota C Corporations file tax returns and pay income taxes but since tax rates are lower for C corporations, owners can (by dividing profits) accumulate more in the corporation than is possible with pass-through taxation
  • South Dakota C Corporation shareholders face double taxation since they are required to pay personal income taxes on dividends paid them by the corporation
  • South Dakota C Corporations can reduce owners’ self employment taxes

Owners & Employees

  • Owners working for the South Dakota C Corporation are employees and are therefore eligible for certain fringe benefits such as group insurance plans, retirement and profit sharing plans, and tax-favored stock option and bonus plans
  • Employees frequently prefer to work for a corporation that can offer them stock options and stock bonuses
  • In a sense South Dakota C Corporation is immortal and perpetual since it does not end with the death of a shareholder owner as do some of the other business types

Public Perception

  • The general public normally thinks of corporations as being more substantial than sole proprietorships and partnerships

This information is not an attempt to present all you should know when forming a C corporation in South Dakota but rather to present just some of the basic information about South Dakota C corporations. While we make every effort to ensure its accuracy, MaxFilings cannot and does not guarantee that all of the information is accurate or complete and/or current and it should therefore be independently verified. And, as always, you should seek the advice of qualified professionals who are familiar with your circumstances as well as applicable federal and South Dakota laws.    

MaxFilings helps business owners just like you form C Corporations in ST

  • MaxFilings helps you get organized and you set the pace – you can save all your incorporation information in one handy spot online and make changes anytime until you’re ready…or you can order online right now!
  • There’s never any obligation to order and there’s no charge for saving your information – you only pay your incorporation fees when you’re ready to order. Our competitive pricing includes all state fees and other charges so you’ll have no surprises later.
  • As you incorporate in ST, you need to think about growing and promoting your new corporation – MaxFilings’ online promotions partner SEO Advantage offers you expert services in PR, web development, search engine marketing, web site optimization, and graphic design.
  • Best of all, your satisfaction is 100% guaranteed!

Incorporate in South Dakota

South Dakota image

Not quite ready?

You can start entering your information and come back when you’re ready.

START HERE

South Dakota Business Formation

FAQ About MaxFilings

Wondering what happens after you submit your incorporation order to us? Have questions about using MaxFilings to incorporate your business or form an LLC? Here you'll see basic questions about our system that can help make your experience smooth and hassle-free. FAQ About MaxFilings

South Dakota Incorporation Resources

US State Specific Incorporation Resources
Online Incorporation Guide
General Corporation Guide:
Form a S Corporation
Incorporate vs. LLC, What You Need to Know:
Setting Up an LLC
Choosing Business Entities for Incorporation:
State to Incorporate
LLP Formation:
Form an LLP
Incorporate or Form a Corporation with MaxFilings:
Incorporation Services