How to Fill Out the Articles of Incorporation Form in South Dakota
Incorporating a business is a big step toward becoming a legal entity. This process involves filling out several forms and submitting them to the appropriate authorities. If you want to start a limited liability corporation (LLC), you’ll need to complete the South Dakota articles of incorporation form.
The South Dakota secretary of state requires that every corporation submit articles of incorporation to him or her within 30 days of forming the corporation. You can do this by completing the South Dakota articles of organization form.
You’ll need to include the following information:
1. Name of the corporation
2. Address of the principal place of business
3. Date of formation
4. Names of directors
Steps to Incorporating in South Dakota
Forming a corporation begins with filing Articles of Incorporation with the Secretary of State. Once filed, it becomes a public record, and anyone can access it online. If you are interested in starting a new business in South Dakota, we recommend consulting with an attorney about how to incorporate it.
You can start preparing your documents once you know what type of entity you want to form. Once you decide what type of corporation you want to form, you’ll need to complete the following steps:
1. Find out what type of license you need.
Incorporation is not legal in South Dakota unless you have a medical marijuana card. If you do not have a medical marijuana card, you need to apply for a recreational marijuana card.
2. Get a business license.
You will need to obtain a business license before starting any business.
3. Register your corporation.
You must first register your company if you want to incorporate it. To do this, you will need to file a certificate of incorporation at the Secretary of State’s office.
A tax identification number (TIN) is a nine-digit number that identifies businesses for taxation purposes. In order to obtain a TIN, you will need to go to the IRS website and fill out their application. Once you receive approval, you will need to send them a check for $250 along with your completed application.
A foreign corporation must apply with the secretary of state before doing business in South Dakota.
There are certain exceptions where a domestic corporation does not need to apply.
A foreign corporation must register with the Securities and Exchange Commission (SEC).
All foreign corporations must file an annual return with the SEC.
The foreign corporation must file its returns thirty days after the end of the fiscal year.
All foreign corporations must keep records of corporate actions and transactions for three years after the close of the calendar fiscal year in which those actions occur.
Supplemental Form
A CGS must accompany an application for a Certificate of Good Standing (CGS). The CGS must be filed with the CA if the application is filed through a foreign incorporated entity. The CGS must be submitted with the CA application. The CG should include the following information:
1. Name of Corporation
2. Address of Principal Place of Business
3. Legal Status of Corporation
4. In Date Incorporated
5. Principal Officer/Director
6. Shareholders’ Names & Addresses
how to Submit the Form
The IRS requires certain nonprofit organizations to file a tax return every year. If you are exempt from filing a federal income tax return, you do not need to file Form 990. You do not need to pay taxes, either. However, there are some exceptions. For example, if you receive over $25,000 in gross receipts during the calendar year, you may be required to file Form 994. In addition, if you operate a school, church, hospital, or similar institution, the law may require you to file a Form 995.
To determine whether you need to file a Form 1023 or 1040, consult the instructions that come with it. If you are applying for an exemption, you should complete Form 1023 or 1020EZ. This form asks detailed questions about your organization. It includes sections that request for information such as how much money you received in donations, what percentage of your budget went towards fundraising, and how many employees you had.
You must submit the form within three months of receiving your final tax return. The IRS may revoke your exemption if you fail to meet this deadline. Therefore, you should make sure that you follow the instructions carefully.
If you are granted an exemption, you must keep track of your expenses. You must include your bank statements, canceled checks, credit card bills, invoices, and other documents that prove your expenses. Your accountant or bookkeeper can help you organize this paperwork.
In addition, you must maintain adequate accounting records. A record of your transactions is needed to verify that you did not spend more than you earned. If you are audited, your books will prove that you operated according to the rules.
Conclusion
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Frequently Asked Questions
Why do companies incorporate in South Dakota?
1. Low taxes
South Dakota’s tax rate is among the lowest in the country at 4%. In addition, South Dakota does not charge sales tax on purchases over $100.00.
2. No income tax
Income tax is charged only on wages, dividends, interest, and capital gains. There is no state personal income tax.
Property tax is assessed based on the market value of the real estate.
4. Business-friendly environment
The state offers many incentives for businesses to locate here. These include low business license fees, no corporate franchise tax, no property tax, and no personal income tax.
5. Quality education system
Education is free and compulsory until age 16. High school graduation requirements are met by age 18. More than half of high schools offer Advanced Placement courses.
6. Safe Communities
Crime rates are lower than national averages. Violent crime is rare.
7. Affordable housing
Rental costs are below average. Homeownership is affordable.
How much does an LLC cost in South Dakota
1. $100 fee per year
The first step to forming an LLC in South Dakota is registering with the Secretary of State’s office. You have to pay a yearly registration fee of $100.00. After you register, you need to file an annual report with the state. If you fail to do so, then you could face fines.
2. $25 fee per member
If you want to add additional members to your company, then you would have to pay a membership fee of $25.00 each. Each member should sign a document stating their agreement to abide by the operating agreements of the company.
3. $10 fee per transaction
You may charge a transaction fee if you wish to sell products or services to your customers. However, you cannot charge more than 10% of the total amount charged to your customer.
4. $50 fee per month
You may also charge a monthly fee of $50.00 if you wish to use the services provided by the secretary of state. These services include preparing documents, maintaining records, and providing legal advice.
5. No fees
There are no fees associated with setting up an LLC in South Dakota.
James Rourke is a business and legal writer. He has written extensively on subjects such as contract law, company law, and intellectual property. His work has been featured in publications such as The Times, The Guardian, and Forbes. When he’s not writing, James enjoys spending time with his family and playing golf.
