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All business with a physical presence in South Dakota are required to collect and remit state and local taxes.
LLC members' income is taxed at the federal self-employment tax rate of 15.3% (12.4% for social security and 2.9% for Medicare). South Dakota does not levy state personal or corporate income taxes, though the LLC will most likely need to pay state sales and local taxes, as well as industry-specific taxes.
Most jurisdictions exempt food sold in grocery stores, prescription medications, and many agricultural supplies. Sales taxes, including those imposed by local governments, are generally administered at the state level.
Sales and Use Tax A church is not exempt from paying sales tax on purchases even though it may have a 501(c)(3) or other exempt status with the IRS. A church is not required to have a sales tax license for most activities, but it may be required to obtain a license if it sells taxable products or services.
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.
South Dakota is one of a few states that tax groceries at the same rate as general sales. Democrats had long supported the grocery tax cut.
Some goods are exempt from sales tax under South Dakota law. Examples include gasoline, purchases made with food stamps, and prescription drugs.
Charges by the newspaper to insert a publication or advertising flyer are not subject to sales tax. Advertisements sold directly to the client are subject to sales tax. Professional business services such as public relations and consulting services are taxable.