A report by Wall Street 24/7 has revealed that South Dakota is indeed the 2nd most pro-business state in the nation. Does that mean incorporation in South Dakota is a good decision? The fact is that SD has much more to offer than just the business climate. Its economic conditions are strong and showing positive growth, there is a high availability of skilled and dedicated workforce, there are opportunities for expansion in technology and innovation, and there is no dearth of business support programs like the rural entrepreneurship support program – Dakota Rising!
Why Choose South Dakota for Incorporation?
The Mount Rushmore State is home to several industries that play a key role in driving the economy with agriculture, tourism, durable goods manufacturing, health care, food processing, and oil and natural gas being the top industries. One of the reasons why a large number of company incorporation in South Dakota take place is because of the advantages or benefits both small and medium sized businesses derives.
Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:
Financial Support Incentive Programs
If you are planning to set up company in South Dakota, financial support and guidance towards starting up your new business are two areas that you don’t have to worry about. The Governor’s Office of Economic Development (GOED) has implemented several programs that provide the much needed financial support in the form of loans and grants. Some of the popular programs include:
- Revolving Economic Development & Initiative (REDI) Fund
- Economic Development Finance Authority (EDFA)
- SBA 504
- South Dakota Microloan/ Microloan Express
- South Dakota Works
- South Dakota Jobs Program
- Dakota Seeds
- Workforce Development Program
South Dakota Opportunity Zones (SDOZ)
There are 25 designated opportunity zones in the state of South Dakota and these include 23 low-income communities as well as 2 non low-income contiguous tracts. The good news is that business incorporation in South Dakota OZ can provide you with tax breaks like no other. If you make any investments within the opportunity zones and it is held for 10 years or more, then your investments will be free of capital gains taxes. List of Opportunity Zones
How do you incorporate in South Dakota?
What is the process of incorporation in South Dakota? What type of documentation is required? These are some of the common questions that you will be confronted with if you are planning to start a new business in the state. The following steps will enable understanding of the entire process:
The first step towards incorporation in South Dakota is choosing the type of business you want to form. The different types of business structures that you can form in the Mount Rushmore State include Business Corporation (C & S Corporation), Non-Profit Corporation, Limited Liability Company (LLC), Limited Partnership (LP), Limited Liability Partnership (LLP), Co-operative, and Business Trusts.
The type of business entity you want to form can be either domestic or foreign. The forms and fee will be different for each type of entity.
What is the next step towards company incorporation in South Dakota? The next step is to identify and reserve a name and this can be done as follows:
- Naming Requirements: According to SD Codified L § 47-34A-105 (through 2011) for LLC and SD Codified L § 47-1A-401 to 47-1A-401.2 for corporation, a business name should contain the words “corporation”, “incorporated”, “limited liability company” or abbreviations like “corp.”, “inc.”, “ltd.”, “L.L.C.”, ”Ltd., ” or similar abbreviation.
- Business name search: You need to search for a business name that is not in use currently. You can conduct a name availability search here.
- Name Reservation: Once you have identified a business entity name, you will have to reserve the name pursuant to SD Codified L § 47-34A-106 (through 2011) for LLC and SD Codified L § 47-1A-402 (2014) for corporations as a part of the process of incorporation in South Dakota. You can reserve the name for a period of 120 days with the office of the South Dakota Secretary of State.
- Name Registration: If your business is a foreign entity then name registration is required pursuant to SD Codified L § 47-34A-107 (through 2011) for LLC and SD Codified L § 47-1A-403 (2014) for business corporations.
Choose a Registered Agent
Whether you form a corporation or an LLC business entity, in order to transact business in the state of South Dakota, you will have to maintain a registered agent pursuant to 2011 South Dakota Code, Title 59 – Agency, Chapter 11. Model Registered Agents Act §59-11-6.
We are one of the respected registered agents in South Dakota and will be responsible towards initiating incorporation in South Dakota through processing of your Articles of Organization and Certificate of Authority for LLCs and Articles of Incorporation and Certificate of Authority for business corporations.
Articles of Incorporation and Certificate of Authority
You will be required to file “Articles of Incorporation” pursuant to SD Codified L § 47-1A-203 (2014), if your business is a domestic corporation. You will have to file a “Certificate for Authority” pursuant to SD Codified L § 47-1A-921.3 (2014), if it is a foreign business entity. In order to streamline the process of incorporation in South Dakota, we can file documents on your behalf through the online process or through an expedited process.
Date Stamped Copies
As a part of the process of company incorporation in South Dakota, we will ensure, you receive date-stamped and filed copies that verifies that the state has filed as well as formed your corporation.
Costs and Fees associated with South Dakota Incorporation
What would it cost to set up a company in South Dakota? Check Fees here!