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Prior to the bill's enactment, South Dakota's economic nexus threshold was gross revenue of $100,000 or 200 or more separate transactions in the previous or current calendar year. The economic nexus threshold will now be gross revenue of $100,000 in the previous or current calendar year, effective July 1, 2023.
Establishing a sole proprietorship is relatively uncomplicated. While you do not have to file articles of incorporation or organization (as you would with a corporation or an LLC), you likely will have to obtain a business or sales tax license to do business under South Dakota law or local ordinances.
There is no fee to register a sole proprietorship. Your liability with this business organization type is unlimited. You also need to register for sales and service tax. It's the easiest type of business to set up because you don't need to file with the state like you do with an LLC or corporation.
Corporations, partnerships, associations, cooperatives, and limited liability companies that are conducting business in South Dakota under any name other than their corporate name are also required to file each fictitious name under which they may conduct business (See SDCL 37-11 and 2-14-2).
The first step is to file a form called the Amended Articles of Organization with the Secretary of State and wait for it to be approved. This is how you officially change your LLC name in South Dakota. The filing fee for the Amended Articles of Organization in South Dakota is $60.
How to start a sole proprietorship: 7 steps to take Choose a business name. ... Register your business name. ... Purchase a website domain name. ... Obtain a business license and other permits. ... File for an employer identification number (EIN) ... Open a business bank account. ... Get insurance coverage.
How to start a South Dakota Sole Proprietorship Step 1 ? Business Planning Stage. ... Step 2 ? Name your Sole Proprietorship and Obtain a DBA. ... Step 3: Get an EIN from the IRS. ... Step 4 ? Research business license requirements. ... Step 5 ? Maintain your business.
Two Ways to Start A New Business in South Dakota Define your business concept. Draft a business plan. Choose a business name. Fund your startup costs. Choose a business structure. Register your business with the South Dakota Secretary of State. Get your business licenses. Set up a business bank account.