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Along with no state income tax, South Dakota also has a 0% corporate tax rate, making it a great place to start an LLC that is taxed as a corporation. Advantages of South Dakota: No state income tax. No corporate tax rate (for LLCs treated as a corporation)
Why do companies incorporate in South Dakota? Having a South Dakota LLC or corporation will limit liability to the company owners. In addition, there may be tax advantages to structuring your business as an LLC or corporation.
Corporate bylaws are legally required in South Dakota. Typically, directors adopt bylaws at the first organizational meeting.
South Dakota doesn't tax personal income, capital gains, or corporate income. Crime rates are low, and energy costs are relatively inexpensive. Among South Dakota's many attractive qualities, the state's reasonable regulations and its balanced budget make South Dakota an attractive start-up proposition.
If you are conducting business in South Dakota you need a license even if you do not have a physical location. If you have nexus then all your sales in South Dakota are taxable (including online and catalog sales) and you must be licensed with the Department of Revenue.
Incorporating in South Dakota offers a number of benefits like limited liability, perpetual existence, ease of ownership transfer, and easy accessibility to investment.
Benefits of Opening a Business in South Dakota At the state level, there's no corporate income tax, personal income tax, personal property tax, business inventory tax, or inheritance or estate taxes. Even without the tax advantages, doing business in South Dakota is especially affordable.
You amend the articles of your South Dakota Corporation by submitting the completed Amendment to Articles of Incorporation form in duplicate by mail or in person, along with the filing fee to the South Dakota Secretary of State.