South Dakota taxes

South Dakota has no personal income tax and no corporate income tax. A sole proprietor owes the state nothing for the business. LLCs and corporations file an annual report with the Secretary of State, from $55 a year, and that is the whole of what the state wants from most businesses. Banks and other financial institutions are the exception: they pay a franchise tax.

Personal income tax

South Dakota has no individual income tax and has never had one. There is no South Dakota return to file, whatever you earn.

The state is funded mainly by sales and use tax, plus a franchise tax on banks and financial institutions that never touches a personal return.

Sole proprietor

A sole proprietor with no LLC has nothing to file with South Dakota for the business. The annual report is only for registered entities, and there is no personal or corporate income tax.

Forming an LLC would start the annual report, from $55 a year.

Single-member LLC

Every South Dakota LLC files an annual report with the Secretary of State each year, whatever it earned. It costs $55 filed online or $70 on paper, and filing late adds another $55.

It is due on the first day of the month the business was originally formed in, not on a date shared with other businesses. With no tax season to remind you, it is easy to forget, and it is what keeps the LLC in good standing.

Partnership

South Dakota has no income tax return for a partnership. The annual report is the filing: $55 online or $70 on paper, due on the first day of the month the business was originally formed in.

Limited partnerships and business trusts do not file the annual report at all.

S corporation

South Dakota has no income tax return for an S corporation. The annual report is the filing: $55 online or $70 on paper, due on the first day of the month the business was originally formed in, and late filing adds another $55.

Keep filing it every year even though no tax is due. It is what keeps the corporation in good standing.

C corporation

South Dakota has no corporate income tax, so there is no tax on a corporation's profit. The annual report is the filing: $55 online or $70 on paper, due on the first day of the month the business was originally formed in, and late filing adds another $55.

Banks and other financial institutions are the one exception. They pay a franchise tax South Dakota charges no other business.

Corporate income tax

None

Annual report

$55 online, $70 on paper

Due

the first day of the month the business was originally formed in

Banks and financial institutions

Pay a separate franchise tax

Estimate your state tax

Pick your business type and enter this year's numbers to see the state business tax South Dakota charges. It assumes all your sales are in South Dakota.

An estimate for planning, not tax advice.

Sources

• South Dakota Department of Revenue; SDCL Title 10 (sales, use and bank franchise taxes)
• dor.sd.gov Business Tax
• sdsos.gov Filing Fees
• sosenterprise.sd.gov Annual Report Instructions
• dor.sd.gov Business Tax: the taxes South Dakota administers

Last reviewed August 2026.