Key figures
Registering and staying registered
A Delaware corporation applies to the South Dakota Secretary of State for a certificate of authority — $750 online, $765 on paper — and keeps a registered agent in the state. Each year it files an annual report, $55 online, in the window that runs from its registration anniversary to the start of the second month after.
There is no corporate income tax return and no franchise tax for an ordinary business, so the annual report is the only state filing that keeps the corporation in good standing.
The rest of the calendar
Sales tax returns follow the frequency the Department of Revenue assigns. Reemployment Assistance wages and tax are reported quarterly to DLR. Unclaimed property — uncashed payroll and vendor checks and customer credit balances — is reported to the State Treasurer by October 31 for most holders.
An example
A startup that hires a remote employee in Rapid City in June registers with the Secretary of State, opens a DLR account and reports the hire, and — because the employee is physical presence — applies for a sales tax license if it sells taxable products. Its first annual report falls due in the window after the following June.
Deadlines
- By the first day of the second month after the anniversary monthAnnual report
- As assigned by the Department of RevenueSales tax return
- QuarterlyReemployment Assistance report
- Oct 31Unclaimed property report
The federal baseline
This page covers what South Dakota adds. The federal rules underneath it apply here too.
Common questions
When is our annual report due?
In a window that opens on the anniversary of the date the corporation registered in South Dakota and closes at the start of the second month after it. The fee is $55 online; a late report adds $55.
What does it cost to register?
It is one of the higher foreign registration fees: $750 online for a foreign business corporation’s certificate of authority. After that the yearly cost is the $55 annual report.
Compliance next door
- NDNorth Dakota complianceRegister for $145, file a $25 annual report by May 15 (foreign corporations), and file Form 40 with the federal return. No franchise tax.
- MNMinnesota complianceMinnesota asks for a certificate of authority ($150 plus a $50 filing fee), a $115 annual renewal, the M4 with its minimum fee, and an unclaimed property report before November 1.
- IAIowa complianceRegister with the Secretary of State for $100, file a $60 biennial report by April 1 of even years, and file the IA 1120 by April 30. No franchise tax applies.
- NENebraska complianceGet a certificate of authority, then file the biennial report and occupation tax by March 1 of even years and the 1120N by the 15th day of the fourth month.
- WYWyoming complianceA Delaware corporation registers in Wyoming for $150 and files an annual report each anniversary month with a license tax of at least $60; there are no state income tax returns.
- MTMontana complianceA Delaware corporation registers in Montana for $70, files a free annual report by April 15 each year, and files Form CIT by May 15 with a $50 minimum tax.
More of the South Dakota guide
- AccountingAccounting and state tax in South DakotaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in South DakotaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in South DakotaPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- PayrollPayroll taxes and employer rules in South DakotaWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- AdvisoryAdvisory: credits and decisions in South DakotaCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.