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Registering a company in South Dakota (USA) in 2020
Business benefits of South Dakota: - Stable economic growth;
- Corporate tax rate – 0%;
- Favorable conditions for opening a financial and IT company;
- 100% foreign ownership;
- No requirements for an authorized capital;
- A relatively simple registration procedure.
Business registration – from €1,499
Company registration period – from 2 weeksDetailed information
Registering a company in South Dakota, as well as opening a corporate account with US banks, can be an interesting solution for opening an international business.
The state of South Dakota is located in the Midwest of the United States of America - in one of the 4 main geographical regions of the country.
South Dakota is characterized by a smooth economic growth, in particular, the stable development of the following sectors: the agriculture, services, a tourism, a food processing, the energy, a mining. The state is also one of the 6 largest ethanol producers in the United States.
The state capital is the city of Pierre. The largest cities of jurisdiction include: Sioux Falls, Rapid City, Aberdeen.
If you want to register a company in South Dakota, then the following pleasant advantages await you:
- A stable economic growth;
- A favorable investment climate;
- The presence of a large selection of promising business niches;
- A quick and easy company registration procedure;
- Minimum requirements for obtaining a US business license;
- No need to pay a corporate tax or a personal income tax.
Those, who are going to open a commercial firm in South Dakota and are looking for profitable ways to invest, we recommend paying special attention to these business areas: a light industry, a construction, a restaurant business, a medicine.
The choice of organizational form of companies
If you are going to set up a company in the USA, then choosing between corporations, partnerships, state of emergency and others, you should pay attention to a limited liability company (LLC).
This legal form is most popular among foreign entrepreneurs, because of the quick registration procedure, a simplicity, an ease of management and a loyal taxation. Also, another advantage of registering a company in South Dakota as an LLC will be the lack of a personal responsibility of the company owners in the event of litigation.
If you intend to open a firm in the USA, then you will need to fulfill the following conditions:
- Choose a unique name for the company ending in LLC and not containing offensive words. You can not use words, that require additional licensing, as well as hinting at a connection with government agencies;
- Elect directors/shareholders from 1 or more of any residency (individuals/ companies);
- Hire a local agent (resident, as an individual/legal entity);
- Make a charter of the company and submit it to the local secretariat (with a personal visit/by email);
- Appoint a secretary for accounting.
To set up a company in South Dakota, you will need to obtain a federal EIN - a number, that identifies your company as a taxpayer. This number is required for tax reporting, hiring staff, as well as for opening accounts in the United States. You can get the EIN in the USA by registering with the IRS (with a personal visit or remotely).
After receiving the EIN, the company needs to open a corporate account with a South Dakota bank and get a credit card to simplify business activities. In the case of registering an LLC in the United States, the use of Internet banking and a credit account will provide more reliable protection for the business.
Registration of firms in South Dakota is far from the only condition for starting a business. In addition, many US states require special permits/business licenses. So, you will need to obtain a license in South Dakota to conduct business in the following areas: construction works, a gambling, an insurance and financial services, a medicine and others.
It is better to entrust the solution of registration a company to trusted specialists. IQ Decision lawyers offer you professional legal services in registering companies in various jurisdictions, opening US corporate bank accounts and obtaining business licenses in South Dakota. The term of registering a company in South Dakota is from 3 months.
The information outlined in the article is actual at the time of its publication. Please refer to our specialists for checking possible solutions for your business.