How to form a corporation in South Dakota
Forming a corporation in South Dakota is a structured process, but it’s relatively simple when broken down step by step. The checklist below outlines what’s involved when incorporating in South Dakota.
1. Choose your corporation type
South Dakota allows several types of corporations, including C corporations and S corporations. Depending on your goals, you may also consider forming a nonprofit or professional corporation if your business qualifies under state rules.
2. Decide on a company name
Once you’ve selected your corporation type, the next step is choosing a business name. The name must be distinguishable from other registered entities in the state and include an appropriate corporate designator. Most business owners conduct a South Dakota corporation search to confirm name availability before filing.
3. Get a registered agent
Every South Dakota corporation is required to appoint a registered agent with a physical address in the state. The registered agent receives legal notices and official state correspondence on behalf of the corporation. You may designate an individual, a business entity, or a professional registered agent service to fulfill this role.
4. Choose an incorporator
The Articles of Incorporation must name an incorporator, who is responsible for signing and submitting the formation documents to the South Dakota Secretary of State. An incorporator can be an individual, an attorney, or an authorized third party acting on your behalf.
5. Issue shares
South Dakota corporations must authorize shares of stock as part of the formation process. The Articles of Incorporation must state the number of shares the corporation is authorized to issue and, if applicable, describe different classes of shares and their associated rights.
It’s wise to consult with legal or tax professionals when structuring share issuance to ensure compliance with South Dakota law and alignment with your corporate strategy.
6. File the Articles of Incorporation
After gathering the required information, you’ll file the Articles of Incorporation with the South Dakota Secretary of State. Filing can typically be completed online or by mail. Once the state accepts your filing, your South Dakota corporation is officially formed. Additional organizational steps are required after filing to keep your corporation compliant and operational – read more about these in our guide on how to start a corporation.
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