You did it. Your South Dakota LLC is officially up and running, ready to take on challenges, roll in the profits, and change the world.
There’s no doubt that this is an exciting time in your business journey. After starting your LLC, it’s easy to get carried away in all the excitement and expectations. After all, as a new business owner, you’ve got a lot on your plate.
But the state does too. They need to keep updated records on thousands of businesses so that they can effectively reach out with any important tax or legal communications down the road. How do they do it? With your cooperation, of course.
In South Dakota, an LLC’s annual report consists of two parts: a Franchise Tax and a Public Information Report. Each LLC must submit these filings to the South Dakota Comptroller every year to keep their information current. Unsure how to go about it? Never even heard of it? No worries at all. That’s why we’re here. Keep reading for everything you need to know.
For brevity’s sake, we’ll refer to these two combined filings as the “Annual Report” in this guide.
What is the South Dakota Annual Report? Why is it Important?
Consider an Annual Report the state’s yearly checkup on your LLC. It’s similar to a census in that its purpose is to collect the necessary contact and structural information about each South Dakota business.
Each state has its own annual reporting requirements, and some don’t even require them. But in most states, you’re required to submit one per year that includes your LLC name, principal office address, registered agent information, and member/manager names and addresses. Whether you run a domestic or foreign LLC, you should plan on submitting an Annual Report.
Don’t be intimidated, but it’s not something you want to take lightly. This is how the state updates your LLC’s record with the most recent information. They need to know how to reach you with important information about your business status, upcoming filings, taxes, and service of process.
For example, if you change your registered agent, or your current agent resigns, you’ll need to keep the state informed so they can update their contact information. Miss one of their communications and your LLC in South Dakota might end up falling out of good standing or, even worse, administratively dissolved.
Moreover, keeping your information current will help other businesses and potential customers find you. If the Secretary of State has the most updated data on record, anyone – including your future business partners and clients – can find your contact information by performing a name search.
How Much Does the South Dakota LLC Annual Report Fee Cost?
If you’re putting together a budget for all your LLC’s costs – like formation costs, name reservation fees, and initial operating expenses – it’s important to include annual filings like this one, just so that there are no surprises.
Costs vary from state to state. Some are free while others can be several hundred dollars. South Dakota’s Annual Report won’t hit your wallet too hard. It costs $50 to file online and $65 to file a paper form. This is a recurring fee, however, so you’ll need to file it every year.
Due Date and Frequency for an Annual Report in South Dakota
As the name suggests, your LLC will need to file one Annual Report per year. It’s due by the last day of your company’s anniversary month (the month that you initially filed it). So, if your Articles of Organization was approved on June 8th, you will need to file your Annual Report before June 30th each year.
What Happens if You Don’t File?
You might be thinking, “that sounds like a pain. How bad could it be if I just fly under the radar?” The short answer: don’t try it. Failing to file your Annual Report can yield some serious consequences.
When you’ve got a lot on your mind, it can be tough to remember every deadline. But if you miss your Annual Report due date, you’ll be hit with a $50 late fee. And if you go more than 60 days past the due date, the state may administratively dissolve your business.
Once you enter your LLC’s anniversary month, you’ll want to start prepping to file your Annual Report. This includes gathering the necessary information to complete it. Here’s what you’ll need:
- Business ID
- LLC name
- Principal executive office address
- Registered agent name and address (or commercial registered agent number)
- Manager names and addresses (if the LLC is manager-managed)
- Beneficial interest (optional)
That’s everything! If you don’t know this information off the top of your head, you can find it on your Articles of Organization or in your LLC’s online record. Once you’ve gathered your information, you’re ready to file.
You’re welcome to file your Annual Report either online or using a paper form. Both are equally effective, but we recommend filing online because it’s cheaper and faster.
Online Filing: You can submit your form electronically through the Secretary of State’s Business Services Online website. From the homepage, just select “File an Annual Report,” then, on the next page, click the green button that says “File an Annual Report.” Enter your Business ID and the site will direct you through a series of pages where you can input, confirm, and update the information listed above. When finished, you can enter your payment information to complete the filing. Your report will be processed immediately.
Hard Copy Filing: Download the paper Annual Report form and fill it out. Include a $65 check and mail it to:
Secretary of State Office
500 E Capitol Ave
Pierre, SD 57501
If you live near Pierre (or happen to be visiting) you can also hand-deliver your form and payment to the same address. Mailed or hand-delivered forms will be processed in 3-5 business days.
Does the State Send Reminders?
Reminders are always nice. They help you stay on top of your business requirements and ensure that you won’t fall out of good standing.
The Secretary of State’s office has your back here. They will send an Annual Report reminder to the email address you listed on your Articles of Organization or your registered address. But just to make sure you don’t forget, we suggest setting your own reminders as well in a planner, phone, calendar, etc. This way, you won’t risk incurring the state’s late fees and penalties.
Can I Hire a Service to Handle it?
You probably have a full plate as it is, and the thought of adding one more responsibility to your to-do list might make you shudder. You’re not alone.
Plenty of other LLC owners have outsourced their reporting duties to LLC services. These companies will take the entire process off your hands, handling your Annual Report each year. If that piques your interest, we recommend ZenBusiness, which is an experienced and trustworthy LLC company.
But their services aren’t restricted to forming an LLC or managing Annual Reports. They can also help you form your business, draft an operating agreement, handle registered agent responsibilities, and much more, all for a reasonably low price.
If thinking about your LLC responsibilities ties your stomach in knots, let ZenBusiness take some of those worries off your plate.
There you have it, everything you need to know about South Dakota’s reporting requirements. Follow this guide to a T and your LLC will be prepared to operate smoothly and in good standing long into the future.
And remember, if at any point it seems overwhelming, you’re not alone. A good LLC service like ZenBusiness (or LegalZoom) can be a valuable resource, taking care of all the little details, so you can focus on growing your business.