Selecting the South Dakota Corporation or LLC Name
It should be remembered when choosing a name for your corporation to be filed under south Dakota law that the name will need to be unique and will identify you as a separate entity transacting business in the state. The name you choose for your corporation must end with “Incorporated,” “Corporation,” “Corp” or “Inc.”. When developing a name for a limited liability company it must end with “Limited Liability Company” or “LLC”.
It is important to note that the name pf your business will be identifying your corporation or LLC as a unique entity. The name will not likely be accepted by the state if it could mislead the public or if it too closely resembles the name of another corporation or LLC formed in South Dakota.
Due to South Dakota requirements, you may not use any type of punctuation marks such as dashes, question marks, exclamations, periods, brackets or commas in name selection. It may be desireable to try to name your corporation or LLC so that it identifies with the goods or services you provide, but this is not required.
Selecting a Board of Directors
A corporation within South Dakota can have several members as director but is only required to have one by the state. Since the board of directors of the business is responsible for managing the corporation, it is suggested that the board be comprised of individuals that are officers or shareholders who have some type of day to day involvement and direct interaction with the corporation. The minimum age for a director in South Dakota is 18 years of age.
South Dakota Taxes
South Dakota does not maintain a Corporation or LLC income tax, but both are required to file an annual report and pay a minimum fee of $100.00.
South Dakota does not maintain an individual income tax so employers are not expected to withhold state income tax. South Dakota maintains a general sales and use tax of 4% with municipalities having the authority to impose a local tax.
The registered agent must have a physical street address within South Dakota state. PO boxes are not acceptable, within South Dakota.