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Forming an LLC in South Dakota
Forming an LLC in South Dakota is quite simple and the amount of paper work is low compared to what is required for the formation of a corporation. The LLC entity was created to help stimulate the formation of small-scale businesses. Those that are insecure about official procedure, or simply have a lot on their hands, can choose to obtain the help of an incorporation company that will do all the paperwork for a modest cost. It is best to have a legal counsel present while writing the Operating Agreement. Although not mandatory in South Dakota, a legal counsel may help you avoid future problems with the IRS.
Forming an LLC in South Dakota in 5 easy steps
- The first step is to select a name for your LLC. The name must be available (not occupied by another LLC) and you must of course refrain from trademark violations. The name must also contain an LLC identifier, such as “Limited Liability Company” or an abbreviation thereof.
- The second step is to hand in the Articles of Organization at the South Dakota filing office.
- The third step involves gathering all the members of the LLC and have an operational meeting where you adopt the Operating Agreement. Remember that a legal counsel will be helpful during this process.
- After the Operating Agreement is finished it is time to open the very first company bank account in the name of the LLC and also to obtain a FEIN, Federal Employer Identification Number.
- Get a business license from each and every city and county in which the LLC is currently aspiring to do business.
Important facts to take into consideration before forming an LLC in South Dakota
- The minimum filing fee in South Dakota is $125.00. (For 15 business days.)
- An LLC formed in South Dakota is required to file an annual report each year. This annual report is due during the month of the initial filing. The annual report fee is $30.00.
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