How to Register a Business Name in South Dakota
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In South Dakota, registering a business name can be done in three distinct ways. You can establish an LLC or Corporation if you want your business to be a separate legal entity or file for a DBA (officially referred to as a Business Name) if you’re a sole proprietor or a general partnership. For nationwide registration and additional legal protections, you may also want to consider filing a federal trademark with the USPTO.
Your South Dakota business name should be registered before:
- Obtaining a South Dakota Sales Tax License from the South Dakota Department of Revenue
- Registering as an employer for Unemployment Insurance (UI) and Workers’ Compensation
- Applying for South Dakota Occupational Licenses with the South Dakota Department of Labor and Regulation
- Securing an Employer Identification Number (EIN) from the IRS
- Creating a business bank account
How much does it cost to Register a Business Name in South Dakota?
The cost to register a South Dakota business name varies depending on the type of registration:
- South Dakota LLC cost: $150
- South Dakota Corporation cost: $135
- South Dakota DBA cost: $10
Steps to Registering a Business Name in South Dakota:
1. Check Business Name Availability
Before you dive into registering your name, you must ensure your chosen name is available to use. That means checking if it’s already being used or is too similar to other business names out there. This step is extremely important because it helps prevent legal problems related to trademarks and issues with similar businesses that can lead to your South Dakota name registration being turned down. To do this properly, you should do three specific types of searches:
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Start your South Dakota business name search with the help of professionals.
Trademark Search
The first step to verify your name’s availability is to ensure your desired name isn’t already trademarked. Trademarks offer superior protection by being registered at the federal level, meaning they override state and local registrations. If you encounter a match, it’s time to brainstorm a fresh business name that stands out.
You can search the U.S. Patent and Trademark Office (USPTO) database using the Trademark Electronic Search System (TESS) page. However, interpreting TESS results can be challenging. If you want a simpler display and layout, try using Trademark Engine’s Free Trademark Search.
South Dakota Business Name Search
Once you’ve confirmed that your chosen business name isn’t trademarked, the next step is to ensure it’s not registered within South Dakota. Utilize the South Dakota Business Information Search to verify that your business name isn’t already registered within South Dakota.
Perform multiple searches, employing wildcard characters or fragments of your business name to identify any potential matches. If your business name closely resembles an existing South Dakota business, it might lead to the rejection of your name registration application, so you may want to reconsider using that name.
Pro Tip: You might come across instances where your desired name was registered in the past but is currently available due to the previous business being dissolved or the name expiring. Even if the name is now able to be registered, it’s strongly recommended to opt for a new name.
Previously registered business names can cause complications when obtaining an EIN (Employer Identification Number) from the IRS. Using a previously registered name oftentimes results in EIN Reference Number 101 error. Although getting an EIN after this error is possible, the process can be cumbersome and requires phone calls to the IRS and faxing your registration paperwork to an agent to get an EIN. Consider generating a different business name unless it’s absolutely necessary to use that particular name and you’re willing to endure potential hours on the phone dealing with the IRS.
Website Domain Search
The final search after you’ve confirmed you don’t have trademark or state-level registration issues in South Dakota is for a website domain name. If someone else is already using your domain name, it could cause issues for your business. Consider if it’s worth not having the domain name that matches your business name and if it could cause problems for your business in the future. If your domain name is available, you should register it. Whether a website is in your immediate plans or not, you want to prevent others from taking it. You’ll also appear more legitimate to people you do business with since you can use an email with your business name.
Domain Name and Business Email
You can use Namecheap to verify if your domain name is available. They also offer a business email service that’s free to try for the first 60 days when you purchase a domain.
2. Choose a Business Structure
In the process of registering your business name in South Dakota, you’ll need to determine the legal structure for your business. This decision not only affects how you register the business name but also impacts aspects like personal liability, financing options, and taxation. Think about the number of owners, funding needs, how comfortable you are with potential risks, and tax considerations. For more detailed guidance, refer to our comprehensive guide on How to Choose a Business Structure.
Recommended Business Structure:
For a typical new business an LLC is the recommended choice. Why? Because LLCs combined the best of all other business structures. You get liability protection similar to a corporation (unavailable for sole proprietors and general partnerships) but business income is only taxed once whereas a corporation is subject to double taxation.
For the assurance that your LLC is filed the right way, you can use a professional filing service. We’ve reviewed the best LLC services so you can find the one that works for you.
LLC
An LLC (Limited Liability Company) is a business entity providing liability protection to owners, separating personal and business assets, while offering flexible management and taxation choices under South Dakota law (SDCL § 47-43A).
Learn More: What is an LLC
LLC Pros
- Personal liability protection
- Legally separate entity
- Default pass-through taxation (business income taxed once)
- Unlimited number of owners (members)
- Flexible management – can be run by members or non-owner managers
- Option for S-Corp tax status
LLC Cons
- Upfront filing costs
- Ongoing cost and filings to stay compliant
- Unable to go public
Do you need to register to be an LLC in South Dakota?
Yes, registration with the South Dakota Secretary of State is required if you want your business to legally be an LLC in South Dakota.
Corporation
A corporation is a separate legal entity that can be created under South Dakota law (SDCL § 47-1A). Stockholders own it, with limited liability. It’s optimal for securing outside investment and providing owner protection.
Learn More: What is a Corporation
Corporation Pros
- Personal liability protection
- Legally separate entity
- Unlimited number of owners (shareholders)
- Easier to raise capital by selling stock
- Able to go public
- Option for S-Corp tax status
Corporation Cons
- Default double taxation
- Upfront filing costs
- Ongoing costs and filings to stay compliant
- Increased record keeping requirements
- Strict management structures set by law
Do you need to register to be a Corporation in South Dakota?
Yes, to ensure your business is formally identified as a Corporation in South Dakota, you must register with the South Dakota Secretary of State.
Sole Proprietor
A sole proprietorship is an individual-owned business. Quick setup, minimal forms. There’s no legal separation between the business and owner, creating unlimited liability.
Learn More: What is a Sole Proprietorship
Sole Proprietor Pros
- Easy and inexpensive to start
- Simple taxes (business income taxed once)
- Easy to maintain
- Complete control for owner
Sole Proprietor Cons
- Unlimited Liability Risk
- Hard to raise money and get loans
- Not separate from owner
- Difficult to sell business
- No other tax status options
Do you need to register your sole proprietor business name in South Dakota?
If your business name doesn’t contain your full name (both first and last name), it’s necessary to register your business name by completing a “doing business as” name (DBA) filing. For instance, if your name is “Jessica Jones” and you operate a nail salon, the name “Jessica Jones Nail Salon” wouldn’t require registration. However, if the business name is “Glamour Nails,” registration would be mandatory.
Partnership
A partnership is a business with 2 or more owners that work together jointly and share in all business liabilities. Partnerships are pass-through entities so income is reported and paid by each individual partner.
Learn More: What is a Partnership
Partnership Pros
- Easy and inexpensive to start
- Pass-through taxation (business income taxed once)
- Unlimited number of owners (partners)
- Shared business responsibilities
Partnership Cons
- Unlimited Liability Risk
- Responsible for partners’ actions
- Hard to raise outside capital
- Not separate from partners
- Difficult to sell business
- No other tax status options
Do you need to register your partnership business name in South Dakota?
In South Dakota, a partnership must register a “doing business as” (DBA) name if their chosen business name doesn’t include the last names of all partners. For instance, if 3 people named Sarah Johnson, Daniel Smith, and Maria Brown want to start a restaurant, they can operate under the name “Johnson, Smith, and Brown Bistro” without registration. However, if they opt for a distinctive brandable name like “Savor Fusion Bistro”, they would be required to file for a Business Name (DBA).
3. File your South Dakota Business Name Registration
After ensuring your business name is available and deciding on a structure, the next step is to officially register it in South Dakota. Choose the procedure that aligns with your selected business structure. Note: sole proprietorships or partnerships name registrations are done via a DBA filing.
Register a South Dakota LLC Name
To officially register a South Dakota LLC, you’ll have to submit Articles of Organization to the South Dakota Secretary of State, along with the state filing fee of $150. Your Articles of Organization is where you will list vital information about your business, including:
- LLC Name
- Information about the LLC members (owners) and managers (if applicable)
- Business Address (Must be a physical address – PO Boxes not allowed)
- Name and Address of your Registered Agent
South Dakota LLC Name Requirements
South Dakota LLCs must use a name that follows the naming rules outlined in South Dakota law (SDCL § 47-43A-105):
- Must be distinguishable (unique) from all others businesses registered with the South Dakota Secretary of State
- Must clearly denote the business is legally structured as an LLC by including the words “limited liability company” or an abbreviation such as “LLC”
- Cannot use words or designators associated with Corporations such as “Corporation” “Incorporated” “Corp” or “Inc”
- Cannot contain words that imply association with a government entity
- Cannot contain words that are prohibited or require prior approval such as Bank, Banking, Banker
For more in-depth information check out our How to Start an LLC in South Dakota guide, where we cover all the steps needed to form an LLC in full detail.
Want Help Starting a South Dakota LLC?
Use a professional filing service like Northwest Registered Agent ($39 +state fees), which can save you $210 vs LegalZoom when forming a South Dakota LLC.
Register a South Dakota Corporation Name
If you choose to register as a South Dakota Corporation, you’ll need to submit a document known as Articles of Incorporation (along with an Initial Report) to the South Dakota Secretary of State. The filing costs $135 and you’ll need to provide details about your business, including:
- Corporation Name
- Names and addresses of the board of the directors
- Number and type of authorized shares
- Business Address (Must be a physical address – PO Boxes not allowed)
- Name and Address of your Registered Agent
South Dakota Corporation Name Requirements
Corporations in South Dakota are required to use a name that follows the rules detailed under South Dakota law (SDCL § 47-1A-401):
- Must be distinguishable (unique) from all others businesses registered with the South Dakota Secretary of State
- Clearly indicate the business is legally structured as a corporation by including the words “Corporation” or “Incorporated” or use an abbreviation such as “Corp” or “Inc”
- Cannot use words or designators associated with LLCs such as “limited liability company” or “LLC”
- Cannot contain words that imply association with a government entity
- Cannot contain words that are prohibited or require prior approval such as Bank, Banking, Banker
Want to Incorporate in South Dakota?
If you’re interested in incorporating, you can learn more with the ZenBusiness guide on How to Start a Corporation in South Dakota, which covers each step you’ll need to complete to start a South Dakota corporation.
Register a South Dakota DBA (Business Name)
A South Dakota DBA (Business Name) allows a business to operate using a business name that is different than their legal name. To register a South Dakota DBA you’ll need to complete a DBA – Business Name application and submit it to the South Dakota Secretary of State, along with the filing fee of $10. You’ll need to provide the following information:
- Name and address of Applicant(s)
- Business Name (Business Name)
- Address where business is transacted
South Dakota DBA (Business Name) Requirements
The rules for a South Dakota Business Name (DBAs) are not quite as strict as they are for LLCs or Corporations, however there are still restrictions. Mainly, your DBA can’t include designators used for legal entities like “LLC” or “Inc” in the Business Name. DBAs also can’t contain prohibited words or words that imply association with government entities.
Remember, if you’re running a business using any name other than your legal name in South Dakota, registering a DBA is necessary. If you fail to register to comply with SD 37-11-1 you are unable to maintain any legal action in the state of South Dakota under the business name, per 37-11-5.
South Dakota DBA Registration Assistance
Get help registering your South Dakota DBA with Swyft Filings. Packages starting at $99 (plus filing fees).
4. File a Trademark (Optional)
Securing a trademark is crucial if you want increased protection for your business identity. Trademarks are federal-level registrations that apply across state boundaries and allow increased control over your brand name.
You can submit a trademark application online, but it’s more complicated than most registrations. It takes 7-9 months on average before a USPTO examining attorney evaluates your application. As a result, errors in the initial application can significantly delay the process or result in an outright rejection of the application.
To make the trademark registration process more efficient, you should seek the help of a competent attorney or a specialized filing service. Their knowledge and experience can help you save time and streamline the complicated process of submitting applications and following up on them.
Trademark Filing Assistance
Ensure your trademark is filed properly with the help of the experts at Trademark Engine, who’ve helped file over 120,000 trademarks since 2016. Packages start at $99 (+USPTO fees).
Additional Business Resources in South Dakota
For more help, check out our How to Start a Business in South Dakota guide, or use these resources:
- South Dakota Secretary of State – Official government source for business registration
- South Dakota Department of Revenue – Tax and licensing information for businesses
- South Dakota Chamber of Commerce – Local business networking and support
- South Dakota Small Business Development Center (SBDC) – Assistance for starting and growing businesses
- SCORE – South Dakota – Free business mentoring and education
- South Dakota Governor’s Office of Economic Development – Resources for financing and incentives