One of the few states in the US without an income tax on corporations is South Dakota. This implies that corporations founded and operating in South Dakota are exempt from paying state taxes on their profits. Businesses must still pay federal income taxes in addition to other taxes like sales tax and property tax.
Of the few states that permit Series LLCs, South Dakota is one. A series LLC is a kind of limited liability corporation that enables the creation of numerous “series” or separate LLCs inside of a single parent LLC. Each series may run independently of the others and may have its own assets and obligations. Businesses with many corporations or interests may benefit from the added liability protection and flexibility that this structure can offer. How Can I Form an LLC in South Dakota?
You must submit articles of incorporation to the South Dakota Secretary of State’s office in order to establish an LLC there. The name of the LLC, the registered agent’s name and address, and the purpose of the LLC should all be listed in the articles of organization. A filing fee is furthermore due. You can start operating your firm and issuing membership interests as soon as the articles of formation are authorized.
In South Dakota, you are permitted to act as your own registered agent. A person or organization named as the LLC’s representative to receive legal and official documents is known as the registered agent. You must, though, have a South Dakota physical address where you can receive these documents during regular business hours. You can choose a qualified registered agent service to serve as your registered agent if you don’t have a physical address in South Dakota.
Yes, Series LLCs are legal in South Dakota. Businesses with many corporations or interests may benefit from the added liability protection and flexibility that this structure can offer. It’s crucial to remember that not all states recognize Series LLCs, so if you intend to conduct business in other jurisdictions, you should speak with an attorney to be sure your company is in compliance with the rules of each state.
To sum up, South Dakota is a business-friendly state that doesn’t levy a corporate income tax and permits Series LLCs. In order to create an LLC in South Dakota, you must submit articles of formation to the Secretary of State’s office. If you have a physical address there, you can act as your own registered agent. It is always recommended to speak with a lawyer or other qualified counsel if you have any questions regarding creating an LLC or conducting business in South Dakota.