Our meticulously crafted South Dakota LLC Operating Agreement template is designed to simplify setting up your LLC in this state while safeguarding your business interests. This template provides a comprehensive framework for your operations, ensuring a smooth and efficient business journey.
Key Takeaways
- South Dakota law does not mandate an LLC to have an operating agreement.However, it is strongly recommended to draft one to define internal operations, ownership structure, and member responsibilities, reducing potential conflicts.
- Utilize our free South Dakota LLC Operating Agreement template to ensure compliance with state regulations.
- To form an LLC in South Dakota, you’ll need to file Articles of Organization with the South Dakota Secretary of State, appoint a registered agent, and fulfill the required filing fee.
South Dakota LLC Operating Agreement Templates by Type
Single Member LLC
Basic Single Member LLC Operating Agreement
Used 4,920 times
Are you required to uphold your limited liability corporation status in accordance with state law? If the business is sued, the owner’s assets may be safeguarded by this agreement.
Use this operating agreement template in South Dakota when there is only one owner of the LLC.
Multi Member LLC
Multi-Member LLC Operating Agreement Template
Used 4,872 times
Ensure that your newly formed LLC is run the right way by having a multi-member operating agreement in place.
Utilize this operating agreement template in South Dakota when multiple individuals or entities co-own the LLC.
50/50 LLC
50/50 LLC Operating Agreement Template
Used 4,872 times
This free 50/50 LLC Operating Agreement template for businesses with equal ownership.
Employ this operating agreement template in South Dakota when two equal partners equally share ownership and management responsibilities within the LLC.
Member-managed LLC
Member-Managed LLC Operating Agreement Template
Used 4,919 times
A manager is chosen by the firm owners to oversee day-to-day operations in a manager-managed LLC. Use this Member-Managed LLC Operating Agreement Template right away.
Opt for this operating agreement template in South Dakota when the LLC’s management responsibilities are delegated to appointed members.
Legal Requirements
While it’s not a legal necessity under South Dakota’s § 47-34A-103, having an operating agreement is still crucial for single-member and multi-member LLCs.
- For single-member LLCs, an operating agreement helps maintain the corporate veil and proves ownership.
- For multi-member LLCs, it provides operational guidance, defines voting rights, and outlines member contributions.
- This state’s LLC laws govern the formation, operation, and dissolution of limited liability companies (LLCs).
- An Operating Agreement in South Dakota isn’t legally required but is strongly recommended.
- The LLC name in the South Dakota operating agreement must include “Limited Liability Company,” “LLC,” or similar abbreviations. Ensure it doesn’t infringe on another company’s trademark or service mark.
How to Form LLC in South Dakota
Establishing a Limited Liability Company in South Dakota is a process that involves several steps. Here’s a simplified, user-friendly guide to help you navigate through it:
Choose a Business Name
- The first step in forming a Limited Liability Company in this state is to choose a unique name for your business.
- Ensure the business name is easily recognizable to avoid confusion with similar businesses.
- It’s also a good idea to check if the domain name you want for your business is available.
Check Name Availability
- Once you’ve chosen a name, you must search for the availability of a business name with the South Dakota Secretary of State.
Reserve the Business Name
- If you aren’t ready to file the paperwork, reserve an LLC name for 120 days.
File Articles of Organization
- Submit the required form to establish a Limited Liability Company with the Secretary of State.
- This document includes information about your corporation, such as its name, purpose, and registered agent’s name and address.
Appoint a Registered Agent
- A registered agent is a legal entity or an individual authorized by law to receive legal papers on behalf of a company.
- This is a requirement for all these companies.
Draft an Operating Agreement
- An operating agreement outlines the business’ operational procedures and policies.
- Although not legally required, an operating agreement is recommended.
Obtain an Employer Identification Number (EIN)
- This is required for tax purposes and to open a bank account for your business.
- The provision of an EIN is possible through the Internal Revenue Service.
Register the Web Domain Name
- If you plan on having a website for your company, check if the domain name you want is available.
Open a Bank Account
- Open a separate bank account for your Limited Liability Company to separate your personal and business finances.
- This is crucial for maintaining your corporate veil.
South Dakota LLC Laws
- No State Income Tax: This state is one of the few that doesn’t impose a state income tax on businesses.
- Annual Reporting Requirements: All LLCs in this state are required to file a yearly report with the Secretary of State.
- Registered Agent Requirement: Every Limited Liability Company in this state must appoint a registered agent with a physical address.
- Foreign LLC Registration: If your business was originally formed in another state but you wish to do business in South Dakota, you must register as a foreign LLC.
- Real Estate Considerations: Additional considerations and requirements may exist if your Limited Liability Company owns real estate in South Dakota.
- Employment Laws: Businesses with employees must follow federal and state employment laws.
- Operating Agreement: While not legally required, an operating agreement that outlines the business’s operational procedures and policies is recommended.
