Filing a South Dakota Corporation
There are a few reasons why a South Dakota Corporation is attractive to new business owners. For one, a Corporation can provide numerous tax benefits to owners. Furthermore, corporate status demonstrates instant credibility to consumers and clients. Unfortunately, many prospective owners are put off by what they deem to be a problematic filing process. If owners follow the required steps carefully, they can successfully form a Corporation.
Steps To Filing a Corporation
Choose A Name
The first thing that new owners must do is choose a name for their new entity. The state of South Dakota requires companies to include an indicator in their name. In this case, owners will want to add something like, “Corporation,” “Incorporated,” “Limited,” or “Company.” Owners could also choose an appropriate abbreviation, such as “Inc.” Also, the state of South Carolina does not allow two Corporations to share a name. To ensure the name they’ve chosen is unique, owners can use the DoMyLLC Name Availability Check Page
Choose An Agent For Service Of Process
After choosing a name, owners will want to find a registered agent to represent the company. The registered agent is responsible for accepting all legal correspondence on behalf of the Corporation. This position could prove integral to a company’s success. Because of how critical the registered agent is, many owners elect to hire a professional third-party company, such as DoMyLLC, to serve in the role.
File Articles Of Incorporation & Pay Filing Fees
After choosing a name and registered agent, owners can file Articles of Incorporation with the Secretary of State’s office. There is a $150 fee to do so, and an additional $15 cost if filing by paper. Owners can also elect to pay an expedite charge of $50. Information that owners will need to provide on these forms includes:
- The name of the company
- The purpose for which the company is to be incorporated, if professional
- Number of shares the corporation is authorized to issue
- Address of the principal office
- Name, address, and commercial number of the registered agent
- Name and address of each incorporator
- Directors name and address (Optional)
- Optional articles
- Signature of authorized officer
File Initial Report
The state of South Dakota does not require Initial Report
Create Corporate Bylaws, Appoint Directors And Hold Meetings
After filing the Articles of Incorporation, the members of the South Dakota Corporation should hold an initial corporate meeting. Those who filed Articles of Incorporation are responsible for overseeing the initial meeting. Incorporators should appoint individuals to the board of directors at this meeting and record this information in the corporate records. If the Corporation chose to list directors on the Articles of Incorporation, then they are in charge of conducting the initial meeting. Directors will serve on the board until the next annual meeting of the shareholders, where they will be up for re-election.
Once the board is in place, directors can define the roles of the organization’s leadership while electing officers. Directors can also draft corporate bylaws. Bylaws serve as an internal operating manual for the organization. The company cannot exist or conduct business until the board of directors has adopted a set of bylaws. Also, many banks and insurers require a Corporation to provide proof of bylaws before agreeing to do business.
While at the initial corporate meeting, the board of directors will also want to authorize the issuance of stock. The board is the only entity with the authorization to issue stock. They are responsible for doing so throughout the entire life cycle of the company. When issuing stock, the board will also want to begin to maintain a stock ledger. This will help protect the corporate veil and provide clarity to future investors.
Obtain Employer Identification Number
The South Dakota Corporation will also need to secure an Employer Identification Numbers from the IRS. This is required to hire new employees, pay taxes, and open a business bank account.
File South Dakota Required Annual Reports
Each year, the South Dakota Corporation will need to submit an Annual Report. The report is due by the first day of the registration anniversary month. So, if a company was incorporated on June 14, 2017, the first report is due by June 1, 2018. There is a $50 to submit this form. Learn more on our South Dakota Annual Report page.
A South Dakota Corporation will also need to pay state and federal taxes and renew all licenses and permits each year.
How DoMyLLC Can Assist With Streamlining The Process
At DoMyLLC, our goal is to help new business owners form and grow their South Dakota Corporation. Our services include:
- Name availability check
- Prepare Articles of Incorporation
- File Articles of Incorporation with the Secretary of South Dakota’s office
- Provide sample bylaws, meeting notices and minutes for meetings
- Dedicated account manager
- Unlimited customer support
Be sure to contact us today to learn more about how our streamlined services can help.