South Dakota LLC Annual Report and Franchise Tax (2026)
South Dakota LLCs file an annual report with the Secretary of State and pay a $55 reporting fee under SDCL § 47-34A-212, with an additional $15 paper filing fee if the report is not filed online. South Dakota imposes no LLC franchise tax and no personal income tax.
Quick Answer
- Annual report fee
- $55 (SDCL § 47-34A-212)
- Paper filing surcharge
- $15 additional for paper filings
- Filed with
- South Dakota Secretary of State, Business Services
- Franchise tax on LLCs
- None
- State personal income tax
- None
- Sales and use tax
- Administered by the SD Department of Revenue
- Governing law
- SDCL Chapter 47-34A, South Dakota LLC Act
- Consequence of non-filing
- Administrative dissolution of the LLC
What the South Dakota Annual Report Is
The annual report is a short compliance filing that confirms the LLC still exists and that the state's record of it is current. It is filed with the South Dakota Secretary of State, Business Services, and it updates the entity's address, its registered agent and registered office, and its governance information. It is not a tax return and asks for no financial data.
The requirement comes from SDCL Chapter 47-34A, the South Dakota Limited Liability Company Act. The chapter also fixes the fee: the reporting fee under § 47-34A-212 is $55, due and payable with the filing of each annual report.
The $55 Fee and the Paper Surcharge
Two amounts matter. The statutory reporting fee is $55. Filing on paper rather than through the Secretary of State's online system adds a $15 paper filing fee, so a mailed report costs $70 in total while an online report costs $55.
| Item | Amount |
|---|---|
| Annual report reporting fee | $55 |
| Paper filing fee (added if not filed online) | $15 |
| Total, paper filing | $70 |
| LLC franchise tax | $0 - South Dakota does not impose one |
| Federal EIN | $0 |
The economics point one way: file online. The $15 surcharge exists precisely to move filings to the electronic system, and online filings also post to the public record immediately rather than after mail transit and manual entry.
South Dakota Has No LLC Franchise Tax
Many states pair the annual report with a franchise tax or an annual privilege tax - Delaware's flat annual tax and California's annual LLC tax are the well-known examples. South Dakota does not. There is no franchise tax on South Dakota LLCs, and the annual report fee is the only recurring charge the Secretary of State collects from a domestic LLC in good standing.
South Dakota also has no personal income tax, so a default pass-through LLC's members owe no South Dakota income tax on distributive share. A bank franchise tax applies to financial institutions, and it is the exception that gets misquoted as a general franchise tax. For ordinary operating businesses, it does not apply.
What South Dakota does levy heavily is sales and use tax, administered by the Department of Revenue. Sellers of goods and many services need a sales tax license and file returns on an assigned frequency. See South Dakota LLC tax filing.
How to File the Annual Report
- Look up the entity. Find the LLC in the South Dakota business search and note the business ID.
- Open the online filing system. The Secretary of State's business services portal handles annual reports.
- Review the prefilled data. Confirm the principal office, mailing address, registered agent, registered office, and governance details.
- Correct anything stale. The annual report is the standard mechanism for updating addresses.
- Pay $55 and submit. Add $15 if you are filing on paper.
- Save the confirmation with your company records.
The report is short - most owners finish it in a few minutes if the underlying details have not changed.
What Happens If You Do Not File
Missing the report does not immediately void the LLC, but it starts a process that ends badly. A delinquent LLC loses good standing, which shows on the public record and blocks certificates of good standing that banks, lenders, and counterparties request. Continued failure to file leads to administrative dissolution by the Secretary of State.
An administratively dissolved LLC may continue only to wind up. It cannot carry on ordinary business, and the protection members rely on becomes far less certain for obligations incurred after dissolution. Reinstatement is available but requires curing the delinquency and paying the associated fees - always more expensive and slower than filing on time.
Keep the Registered Agent Current
The annual report and the registered agent requirement are linked. South Dakota requires every LLC to maintain a registered agent with a South Dakota street address, and failure to do so is an independent ground for administrative dissolution. The annual report is where most owners notice that an agent has resigned or moved.
If the agent changes between reports, file the change immediately rather than waiting for the next annual report. Service of process delivered to a stale address is still effective service, and a default judgment is the usual consequence of not receiving it.
Foreign LLCs and Other Entity Types
An LLC formed in another state that registers to transact business in South Dakota files its own annual report and pays its own fee; confirm the foreign-entity amount on the Secretary of State's fee schedule, since it differs from the domestic figure. See foreign LLC registration in South Dakota.
Corporations, nonprofits, and limited partnerships each have their own report and fee schedule. Do not carry a fee across entity types - the $55 figure is the LLC reporting fee under SDCL § 47-34A-212, not a universal South Dakota rate.
Building a South Dakota Compliance Calendar
Put four things on the calendar. The annual report, with a reminder at least 30 days ahead. Sales tax returns on whatever frequency the Department of Revenue assigns. Federal income tax deadlines for the entity and its members, including estimated payments. And employer filings if you have payroll.
Two more items are worth an annual look even though they have no deadline: whether the operating agreement still matches how the business runs, and whether an S-corporation election now makes sense given your profit level. If the business is winding down, see how to dissolve an LLC in South Dakota: formal dissolution stops the annual report obligation, abandonment does not.
Frequently Asked Questions
How much is the South Dakota LLC annual report fee?
The reporting fee is $55, due and payable with the filing of each annual report under SDCL section 47-34A-212. Filing on paper instead of online adds a $15 paper filing fee, bringing a mailed report to $70. Filing online is the cheaper option.
Does South Dakota have an LLC franchise tax?
No. South Dakota imposes no franchise tax on LLCs and no state personal income tax. The annual report fee is the only recurring charge the Secretary of State collects from a domestic LLC in good standing. A separate bank franchise tax applies only to financial institutions.
What happens if I miss the South Dakota annual report?
The LLC loses good standing, which is visible on the public record and blocks certificates of good standing. Continued failure to file leads to administrative dissolution by the Secretary of State, after which the LLC may only wind up its affairs. Reinstatement is possible but costs more.
Where do I file the South Dakota annual report?
With the South Dakota Secretary of State, Business Services, through its online business filing system. Paper filing is accepted by mail but adds a $15 paper filing fee. Online filings also post to the public record immediately rather than after manual processing.
Does the South Dakota annual report ask for financial information?
No. It is a compliance filing, not a tax return. It confirms the entity's principal office, mailing address, registered agent and registered office, and governance details. Financial reporting happens through the Department of Revenue for sales tax and through federal income tax returns.
Do foreign LLCs file a South Dakota annual report?
Yes. An LLC formed in another state that is registered to transact business in South Dakota files its own annual report with the Secretary of State. The foreign-entity fee differs from the domestic LLC reporting fee, so confirm the current amount on the Secretary of State's fee schedule.
Related
- How to form an LLC: the national guide (cluster hub)
- How to form an LLC in South Dakota
- South Dakota Articles of Organization
- South Dakota registered agent requirements
- South Dakota business entity search
- South Dakota LLC tax filing
- South Dakota LLC operating agreement
- How to get a South Dakota business license
- Foreign LLC registration in South Dakota
- How to dissolve an LLC in South Dakota
Sources
- South Dakota Legislature - SDCL § 47-34A-212, Annual report reporting fee ($55).
- South Dakota Legislature - SDCL Chapter 47-34A, South Dakota Limited Liability Company Act.
- South Dakota Secretary of State - Filing Fees (paper filing fee).
- South Dakota Secretary of State - Business Services (annual report filing).
- South Dakota Secretary of State - Domestic LLC Annual Report form (PDF).
- South Dakota Secretary of State - Business registration instructions.
- South Dakota Department of Revenue - Business Taxes.
- South Dakota Department of Revenue - Sales and Use Tax.
- IRS - Limited Liability Company (LLC).
- IRS - Get an Employer Identification Number (free EIN).
- Cornell Legal Information Institute - Franchise tax.
- Cornell Legal Information Institute - Limited liability company (LLC).
LegalGlass provides general information for educational purposes and is not legal advice, is not a law firm, and is not a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current amounts with the South Dakota Secretary of State and the South Dakota Department of Revenue before acting.