South Dakota State Law

South Dakota businesses must register with the Secretary of State before conducting business. Sole proprietors using a trade name must file a fictitious name statement with the Secretary of State.…

Source: SD Secretary of State

South Dakota employers who pay $1,500 or more in wages in any calendar quarter or employ at least one worker in 20 weeks of a year must register with the…

Source: SD Department of Labor and Regulation

The South Dakota Revolving Economic Development and Initiative (REDI) Fund provides low-interest loans to South Dakota businesses creating primary jobs. Loans are available through local economic development organizations and may…

Source: SD Governor Office of Economic Development

The South Dakota Small Business Development Center (SDSBDC) provides free one-on-one business advising, financial analysis, and training to South Dakota entrepreneurs and small business owners. The network is hosted by…

Source: SD Small Business Development Center

Home-based businesses in South Dakota are regulated by local city and county zoning ordinances. Most jurisdictions permit home occupations as an accessory residential use subject to restrictions on signage, customer…

Source: SD Governor Office of Economic Development

South Dakota LLCs are formed by filing Articles of Organization with the Secretary of State and paying a $150 fee. All LLCs must designate a registered agent with a South…

Source: SD Secretary of State

South Dakota corporations are formed by filing Articles of Incorporation with the Secretary of State and paying a minimum $150 fee based on authorized shares. Corporations must designate a registered…

Source: SD Secretary of State

South Dakota LLCs and corporations must file an Annual Report with the Secretary of State each year. The fee is $50. Reports are due by the first day of the…

Source: SD Secretary of State

South Dakota does not impose a corporate income tax or a personal income tax, making it one of the most tax-favorable states for business. Business activity is subject only to…

Source: SD Department of Revenue

South Dakota imposes a state sales tax of 4.2% on retail sales of tangible personal property and most services, with municipal taxes bringing combined rates up to 6.2% in some…

Source: SD Department of Revenue

South Dakota minimum wage is $11.20 per hour as of January 1, 2025, adjusted annually by the Consumer Price Index under a 2014 ballot initiative. Tipped employees may be paid…

Source: SD Department of Labor and Regulation

South Dakota employers with one or more employees must carry workers compensation insurance. Coverage may be obtained through a private insurer or through self-insurance approved by the Division of Labor…

Source: SD Department of Labor and Regulation

South Dakota professional licensing is administered through multiple state boards under the Department of Labor and Regulation, covering engineers, architects, real estate agents, contractors, healthcare providers, and accountants. License applications…

Source: SD Department of Labor and Regulation

South Dakota requires residential and commercial contractors to be licensed by the Contractor Licensing program under the Department of Labor and Regulation. Licensing requires passing an exam, carrying liability insurance,…

Source: SD Department of Labor and Regulation