The cheapest way to learn how to start an LLC in South Dakota is also the simplest: file the Articles of Organization online for a $150 state fee, and skip the middleman. That’s the minimum, according to the South Dakota Secretary of State, Business Services. Paper filings add a $15 paper filing fee, for $165 total.
You don’t need a formation company to file. “Free” here means no middleman fee, not no government fee. The state fee goes to South Dakota, and you can’t avoid it.
Your EIN (Employer Identification Number, your business’s federal tax ID) is free. The IRS says you never have to pay a fee for one.
This guide walks you through each step you can do yourself, then shows where a paid service might save you time.
This post contains affiliate links. If you sign up through our links, we may earn a commission at no cost to you. Our recommendations are based on independent research and are never influenced by partners.
Key Takeaways
- The state fee to form an LLC in South Dakota is $150 online or $165 on paper.
- An EIN from the IRS costs $0.
- The annual report costs $70 and is due on the 1st day of your anniversary month. A late report adds $55.
- A formation service is optional. You’d pay the state fee plus the service’s own fee.
Last updated: October 11, 2026
South Dakota LLC Costs at a Glance
| Item | Cost | When |
|---|---|---|
| Articles of Organization (online) | $150 | One time, at formation |
| Articles of Organization (paper) | $165 ($150 + $15 paper filing fee) | One time, at formation |
| Annual report | $70 | Every year, due the 1st day of your anniversary month |
| Late annual report | $55 additional | If the report is delinquent |
| EIN | $0 | One time, from IRS.gov |
Sources: South Dakota Secretary of State, Business Services (Articles of Organization and Annual Report forms); IRS. Figures current as of October 2026.
Want to see how that stacks up against other states? Our LLC filing fees by state roundup puts them side by side.
How to Start an LLC in South Dakota: Step by Step
1. Choose and check your business name
Your LLC’s name needs to be distinguishable from other businesses already on file. Start with the business name search on the South Dakota Secretary of State, Business Services website. Look for names that are the same as yours or very close to it.
Naming rules, such as required words like “LLC,” are set by the state. Check the Secretary of State’s site for the current requirements rather than relying on a summary.
It’s also smart to check whether a matching web domain and social handles are available. Those aren’t part of the state filing.
2. Appoint a registered agent
A registered agent is the person or company that receives legal papers and official state mail for your LLC. The agent needs a physical address in South Dakota. Check the Articles of Organization form for the state’s exact requirements.
You generally have three choices:
- Yourself, if you live in South Dakota and are comfortable with your address on the public record.
- Someone you trust who lives in the state and agrees to do it.
- A commercial registered agent service, which charges a fee and can keep your home address off the public record. It’s optional, and it’s most useful if you’re out of state or don’t want to be tied to one location.
3. File the Articles of Organization
The Articles of Organization is the document that legally creates your LLC. You file it with the South Dakota Secretary of State, Business Services. The state fee is $150 online, or $165 on paper.
Before you start, have these ready:
- Your LLC name (as checked in step 1)
- Your registered agent’s name and South Dakota address
- Your business or mailing address
- Information on who is organizing the LLC
The form itself asks for the exact details, so use the official Articles of Organization form from sdsos.gov. For current processing times, check the Business Services website.
Say you’re forming a one-person LLC in Sioux Falls to run a freelance design business. You check the name search, name yourself as registered agent, and file the Articles online. Your out-of-pocket state cost is $150.
4. Create an operating agreement
An operating agreement is an internal document that sets out how your LLC is owned and run. It covers who the members (owners) are, how profits are split, and how decisions get made. If your LLC is member-managed, the owners run it day to day. If it’s manager-managed, one or more managers handle operations.
You write this one for yourself. You don’t file it with the state, so it costs nothing.
Even a single-member LLC benefits from one, because it helps document that the business is separate from you personally. If you have partners, it matters even more. It spells out what happens when people disagree or someone leaves. For how the LLC fits into your tax picture, see our guide to LLC vs. S corp differences.
5. Get a free EIN from the IRS
Once your LLC exists, apply for an EIN through the online application at IRS.gov. The IRS describes the tool as a way to get an EIN directly from the IRS in minutes, for free. Third-party sites that charge for the same thing are unnecessary.
You’ll need your LLC’s legal name and details about its owner. You’ll typically use the EIN to open a business bank account, hire employees, and file business taxes.
6. Open a business bank account
Keeping business money separate from personal money is one of the simplest ways to treat your LLC as its own entity. Banks usually ask for your Articles of Organization, EIN, and operating agreement, so keep them handy.
If you’re comparing options, Novo is an online business banking platform aimed at small businesses and freelancers. Compare it against your local bank or credit union on fees and features before you choose.
7. File your annual report on time
South Dakota requires an annual report every year. The fee is $70, and it’s due on the 1st day of the anniversary month of when your LLC was filed, per the South Dakota Secretary of State, Business Services. Put a recurring reminder on your calendar the day your Articles are approved.
How to Start an LLC in South Dakota: DIY vs. a Formation Service
The DIY route: The Articles of Organization cost $150 online ($165 on paper). Your EIN is $0 and your operating agreement is $0. Your formation total is $150 if you file online and act as your own registered agent.
Add the $70 annual report, and your state costs come to about $220 by the time your first report is due: $150 to form plus $70 for the report.
With a formation service: You pay the same state fee, plus the service’s own fee on top. For real, current prices and what each plan includes, see our comparison of the best LLC formation services.
What a Formation Service Can Add
- Convenience. They prepare and submit the filing for you.
- Extras. Some bundle a registered agent, an operating agreement template, or compliance reminders.
- Easier setup for out-of-state owners. Handy if you don’t have a South Dakota address.
Bizee is one formation service that offers filing help and related add-ons. You can read our walkthrough of incorporating with Bizee to see how it works. Whether it’s worth it depends on how much you value your time versus the added fee.
If you’re comfortable filling out a form on the Secretary of State’s website, you can skip it.
What You Can Skip
- Paying anyone to get your EIN. It’s free at IRS.gov.
- Paying extra for a generic operating agreement you could write yourself.
- A registered agent service, if you have a South Dakota address and are fine using it.
For the big picture, start with our 7-step overview of forming a business.
Keeping Your South Dakota LLC in Good Standing
Forming the LLC is only the first step. To stay in good standing, file your annual report every year.
- Fee: $70
- Due date: the 1st day of your anniversary month, meaning the month your LLC was originally filed
- Late fee: an additional $55 for delinquent reports
Source: South Dakota Secretary of State, Business Services.
The part people miss is the date. It’s the first of the month, not the end of it.
Say your LLC was filed in March. Your annual report is due March 1 each year. Miss it, and you’d owe the $70 filing fee plus the $55 delinquent fee, for $125 total. For what happens if you fall further behind, check the Secretary of State’s website.
Also keep your registered agent information current and your business records organized.
FAQ
How much does it cost to start an LLC in South Dakota?
The state filing fee for the Articles of Organization is $150 online, or $165 if you file on paper, per the South Dakota Secretary of State, Business Services. An EIN from the IRS is free. A formation service, if you choose one, charges its own fee on top.
How much is the South Dakota LLC annual report?
The annual report fee is $70 per year. It’s due on the 1st day of your LLC’s anniversary month. A delinquent report costs an additional $55.
Do I need a lawyer or formation service to start an LLC in South Dakota?
No. You can file the Articles of Organization yourself through the South Dakota Secretary of State, Business Services. A service or attorney is optional. Consider one if you have a complex ownership setup or want help beyond basic filing.
Is an EIN free?
Yes. The IRS says you never have to pay a fee for an EIN, and you can apply directly at irs.gov. Be cautious of websites that charge for this.
Where do I check processing times?
Processing times can change. Check the South Dakota Secretary of State, Business Services website for the current timeline before you file.
Your Next Step
Ready to decide between DIY and a service? Open our formation services comparison and check real prices against the $150 state fee before you file.
Disclaimer: The information in this article is for educational purposes only and does not constitute legal, tax, or financial advice. Business formation rules, fees, and deadlines vary by state and change often. Always consult a qualified attorney, CPA, or tax professional before making decisions about your business.
