South Dakota Limited Liability Company (LLC) Formation Services

Start setting up your South Dakota LLC now - without any obligation. Save all of your LLC formation information until you’re ready to order.

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.

Articles of organization must be filed with South Dakota to form South Dakota LLC. While an operating agreement does not have to be filed, it is an important document that you should have, setting forth the members’ rights and responsibilities, their share of ownership, their voting rights, their shares of profits and losses and their distribution rights, all of which can be different and without regard to their capital contribution. One or more managers make management decisions and “run the business” for the inactive members.

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

South Dakota LLC Taxation

South Dakota LLC can choose to be taxed as a corporation or choose the pass through tax structure of proprietorships, partnerships and S Corporations. Also, the distribution of profits and losses can differ from members’ share of ownership. While South Dakota LLC and South Dakota S Corporation are essentially alike, an LLC is much more flexible and is easier and less complicated to operate than a corporation.

Why Form South Dakota LLC?

For those who want the same limited liability as a corporation but without the formal structure and more cumbersome ongoing requirements, South Dakota LLC’s flexibility and simplicity offer a distinct advantage over a corporation. South Dakota S Corporation does, however, offer the advantage of allowing owners to minimize self employment taxes.
MaxFilings can help you form your South Dakota LLC. Start setting up your LLC now >>

Some Points to Consider When Forming South Dakota LLC

  • Official documents must be filed with South Dakota in order to form South Dakota LLC and state filing fees must be paid
  • South Dakota LLC is considered by the law to be an individual entity separate from its members and managers
  • South Dakota LLC can generally conduct any lawful business
  • There are fewer required formal reports and less paperwork for South Dakota LLC’s than for corporations

Limited Liability

  • South Dakota LLC members and managers normally enjoy the same limited liability as do the shareholders, directors and officers of a corporation and can lose no more than the amount of their contribution to the LLC
  • Protection of members’ personal assets is a major advantage of South Dakota LLC
  • As with corporations, there are exceptions to the limited liability where an LLC’s members and managers can be held liable

Taxation

  • South Dakota LLC can choose to be taxed as a corporation or choose the pass through tax structure of proprietorships, partnerships and S Corporations

Members & Employees

  • Members of South Dakota LLC can be divided into as many classes as desired, regardless of their capital contribution and each class can have different voting rights, different shares of profits and losses, and different distribution rights
  • Employees would frequently rather work for an LLC than for a sole proprietorship or partnership
  • South Dakota LLC can be managed by its members or by managers
  • South Dakota LLCs  can have an unlimited number of members
  • Corporations, partnerships and trusts can be members of South Dakota LLC

Public Perception

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

This information is not an attempt to present all you should know when forming an LLC in South Dakota but rather to present just some of the basic information about South Dakota LLCs. While we make every effort to ensure its accuracy, MaxFilings does not guarantee that all of the information is accurate,  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 LLC’s in South Dakota

  • MaxFilings helps you get organized and you set the pace – you can save all your LLC 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 LLC 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 form your LLC in South Dakota, you need to think about growing and promoting your new business – 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!            

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South Dakota Incorporation Resources

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