Form Your South Dakota S Corporation
Incorporate in the Mount Rushmore State and elect S-corp status to unlock pass-through taxation and payroll tax savings — with no state income tax and no franchise tax
Filed in South Dakota
The Mount Rushmore State · SD
- State filing fee$150
- Processing time~1 business day online; ~5 days by mail
- Our formation feeFree (you pay $100 if you choose a paid plan)
- Annual report$55 annual report; no franchise tax — due Anniversary month of incorporation
- State tax rateNo state corporate or personal income tax
- Expedited optionFaster than standard (+$50)
Form your South Dakota S-Corp — pay only the state filing fee, nothing more.
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Everything to launch your South Dakota S-Corp
Free formation means you pay only the $150 state filing fee. All core services are included at no extra charge.
Articles of Incorporation filing
We prepare and submit your Articles of Incorporation to the South Dakota Secretary of State.
Registered agent
Required in South Dakota — we act as your agent for the first year.
EIN from the IRS
Your federal Tax ID — required to open a US business bank account and file taxes.
Corporate bylaws
Professionally drafted corporate bylaws — defines ownership, voting, and profit splits.
Benefits of forming an S-Corp in South Dakota
South Dakota is one of the most tax-friendly states in the nation, with no corporate or personal income tax and no franchise tax — so an S corporation's pass-through profits avoid state-level income tax entirely. Combined with strong asset protection laws and a low $55 annual report, the Mount Rushmore State lets owners keep more of their distributions while maintaining a simple, low-cost compliance footprint.
Pass-through taxation — profits flow to shareholders' returns with no entity-level corporate tax
Self-employment and payroll tax savings on distributions taken above a reasonable W-2 salary
No South Dakota state corporate or personal income tax on your pass-through earnings
No state franchise tax — one of the lightest ongoing burdens in the country
Limited liability protection that shields personal assets from business debts
Low $55 annual report keeps your South Dakota corporation in good standing for less
Strong privacy and asset protection laws in the Mount Rushmore State
Build credibility with banks, investors, and clients through a formal corporate structure
Key features of a South Dakota S-Corp
- S-corp is an IRS tax election (Form 2553), not a separate South Dakota filing — you form a corporation first
- No South Dakota corporate or personal income tax on pass-through earnings
- No state franchise tax and a low $55 annual report
- Reasonable-salary rule: pay a W-2 wage, then take remaining profit as distributions
- Eligibility limits: 100 shareholders max, US citizens/residents only, one class of stock
Major industries in South Dakota
Form your South Dakota S-Corp in 6 steps
We handle every step while you stay in the loop. Processing takes ~1 business day online; ~5 days by mail.
- 01
Name Your Corporation
Choose a name that includes a corporate designator such as 'Corporation,' 'Incorporated,' 'Company,' or an abbreviation like 'Corp.' or 'Inc.' Confirm availability through the South Dakota Secretary of State business search before filing.
- 02
Appoint a Registered Agent
South Dakota requires a registered agent with a physical street address in the state to accept legal and tax documents on behalf of your corporation.
- 03
File Articles of Incorporation
Submit your Articles of Incorporation to the South Dakota Secretary of State with the $150 state filing fee. Online filings process in about 1 business day; mailed filings take roughly 5 days. This creates the corporation — the S-corp tax status comes later.
- 04
Set Up the Corporation
Adopt bylaws, appoint directors, issue a single class of stock, and obtain an EIN from the IRS. S-corp eligibility requires no more than 100 shareholders, all of whom must be US citizens or residents, and only one class of stock.
- 05
Elect S-Corporation Status (Form 2553)
File IRS Form 2553 to elect S-corp tax treatment. To apply for the current tax year, file within 75 days of incorporation (generally by March 15). All shareholders must sign the election.
- 06
File Your Annual Report
Each year, file the South Dakota annual report during the anniversary month of incorporation. The fee is $55, and there is no state franchise tax.
South Dakota S-Corp costs at a glance
Kicker formation is free — you pay only the required state fees. No hidden charges.
South Dakota S-Corp requirements checklist
Everything you need to form and maintain a South Dakota S-Corp in 2026.
- File Articles of Incorporation with the South Dakota Secretary of State ($150)
- Appoint a registered agent with a physical South Dakota address
- Adopt bylaws and issue a single class of stock to eligible shareholders
- Obtain an EIN from the IRS for the corporation
- File IRS Form 2553 within 75 days of formation (by March 15) to elect S-corp status
- Limit ownership to 100 shareholders who are US citizens or residents — foreign owners are not eligible
- Pay shareholder-employees a reasonable W-2 salary before taking distributions
Filing information
- Formation document
- Articles of Incorporation
- Filing agency
- South Dakota Secretary of State
- Registered agent
- Required
- Corporate bylaws
- Recommended
- EIN
- Required
- Name reservation fee
- $25 (120 days)
Free formation — pay only the state fee
Kicker formation is free. You pay the $150 South Dakota state filing fee and nothing more for the Starter plan. Optional plans add registered agent, EIN, corporate bylaws, and compliance.
Starter
- Articles of Incorporation filing
- Name availability check
- Digital document delivery
- Formation status tracking
Booster
- Everything in Starter
- Registered agent (required in South Dakota)
- EIN / Federal Tax ID
- Expedited processing (1–2 days)
- Corporate bylaws
- Priority support
- Kicker Voice — 3-day free trial
- Kicker Pay — free for 15 days
Founder
- Everything in Booster
- Business mailing address
- Bookkeeping — 3 months free
- Dedicated account manager
- Rush processing
- Kicker Voice — 6-day free trial
- Kicker Pay — free for 30 days
Kicker
- Everything in Founder
- ITIN filing & preparation
- Same-day priority processing
- 2nd year annual filing $0
- Kicker Voice 12-day + Kicker Pay 60 days free
Compare all plans on our pricing page.
South Dakota S-Corp questions, answered
Common questions about forming an S-Corp in South Dakota. Can't find an answer? Talk to our team.
Is an S corporation a separate filing in South Dakota?
No. You first form a corporation by filing Articles of Incorporation with the South Dakota Secretary of State ($150), then elect S-corp tax status with the IRS by filing Form 2553. The S-corp is a federal tax election, not a separate state entity.
How much does it cost to form an S corporation in South Dakota?
The state filing fee for the Articles of Incorporation is $150, paid to the South Dakota Secretary of State. The IRS does not charge a fee for the Form 2553 S-corp election. The annual report fee is $55.
How long does it take to form a corporation in South Dakota?
Online filings with the South Dakota Secretary of State process in about 1 business day, while mailed filings take roughly 5 days. Once the corporation is formed, you file Form 2553 to elect S-corp status.
When is the deadline to file Form 2553?
To have S-corp status apply for the current tax year, file IRS Form 2553 within 75 days of incorporating, generally by March 15. All shareholders must sign the election.
Does South Dakota tax S corporation income?
South Dakota has no state corporate or personal income tax and no franchise tax, so your S corporation's pass-through earnings are not subject to state income tax. The state sales tax rate is 4.2%. Federal income tax and payroll obligations still apply.
How does an S corporation save on taxes?
Profits pass through to shareholders without entity-level corporate tax, avoiding the double taxation of a C corporation. Owner-employees pay self-employment and payroll taxes only on a reasonable W-2 salary, and remaining profit can be taken as distributions that are not subject to those payroll taxes.
Who is eligible to own a South Dakota S corporation?
An S corporation can have no more than 100 shareholders, all of whom must be US citizens or residents, and it can issue only one class of stock. Foreign owners are not eligible for S-corp status.
What ongoing requirements does a South Dakota S corporation have?
You must file an annual report with the South Dakota Secretary of State during the anniversary month of incorporation, with a $55 fee. There is no state franchise tax. Note that under FinCEN's March 2025 rule, domestic US corporations are exempt from Beneficial Ownership (BOI) reporting.
South Dakota government filing resources
Filing fees for common S-Corp services
Official South Dakota state charges for the filings you may need after formation — our service fee is separate, and we confirm the current amount before filing.
$25 to reserve a name for 120 days (business entities).
$15 base certification fee plus $2 per copied page.
$25 per document.
South Dakota issues a Sales & Use Tax License at NO CHARGE (no application fee).
Learn moreOnline filing fee is $10 (SDCL 59-11-11), per the SOS fee schedule ('Statement of Change of Registered Agent and/or Address $10').
Learn moreState reinstatement filing fee is $300 (SDCL 47-1A-1421, 1422), payable to the Secretary of State.
Learn moreEverything you need to run your South Dakota S-Corp
Formation is the first step — stay compliant and operational with these services.
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Ready to form your South Dakota S-Corp?
Formation is free — you pay only the $150 South Dakota state filing fee. Personal-asset protection, pass-through taxation, and a complete document package, filed in ~1 business day online; ~5 days by mail.
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