StructureCost2026

South Dakota: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $4,474 a year less than a sole proprietorship in South Dakota. All figures are 2026 tax and fees.

$4,474 a year

less as an LLC taxed as an S corp than as a sole proprietorship in South Dakota, at these numbers.

More settings revenue, salary, filing status, payroll costs, PTET

South Dakota, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $22,365 $0
Itemized: $22,365
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
Yearly cost$22,365
Single-member LLC $22,403 +$38 $150
Itemized: $22,403
Annual Reportsdsos.gov, checked Oct 20, 2026$55
Self-employment taxirs.gov, 2026 rates$14,122
Federal income taxirs.gov, 2026 rates$8,226
Yearly cost$22,403
LLC taxed as an S corp lowest $17,891 −$4,474 $150
Itemized: $17,891
Annual Reportsdsos.gov, checked Oct 20, 2026$55
Payroll tax on your salaryirs.gov, 2026 rates$6,425
Payroll service and tax return (estimate)$1,800
Federal income taxirs.gov, 2026 rates$9,611
Yearly cost$17,891
S corporation $17,891 −$4,474 $150
Itemized: $17,891
Annual Reportsdsos.gov, checked Oct 20, 2026$55
Payroll tax on your salaryirs.gov, 2026 rates$6,425
Payroll service and tax return (estimate)$1,800
Federal income taxirs.gov, 2026 rates$9,611
Yearly cost$17,891
C corporation $25,197 +$2,832 $150
Itemized: $25,197
Annual Reportsdsos.gov, checked Oct 20, 2026$55
Payroll tax on your salaryirs.gov, 2026 rates$6,425
Payroll service and tax return (estimate)$2,000
Federal corporate income tax (21%)irs.gov, 2026 rates$11,462
Federal income taxirs.gov, 2026 rates$5,255
Yearly cost$25,197
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in South Dakota

Electing S corp tax treatment for an LLC starts to pay in South Dakota at about $50,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

ProfitSole propLLCLLC as S corpC corp
$30,000$5,181$5,224$6,782$7,201
$50,000$9,732$9,774$9,662$11,593
$75,000$15,495$15,537$12,062$16,843
$100,000$22,365$22,403$17,891$25,197
$150,000$37,607$37,646$30,458$43,010
$200,000$53,430$53,474$43,784$60,004
$300,000$92,125$92,145$73,401$95,647

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in South Dakota

LLCCorporation
Filing to form$150Articles of Organization$150Articles of Incorporationsdsos.gov
Yearly reportAnnual Report, $55 a yearAnnual Report, $55 a yearsdsos.gov
Report due1st day of the anniversary month of formation1st day of the anniversary month of incorporation

Not in the calculator: No local income taxes. Cities add municipal sales and gross receipts taxes on top of state sales tax, collected from customers rather than a tax on the owner.

Switching calculators for South Dakota

By profession in South Dakota

Questions

Is an S corp worth it in South Dakota?

On these figures, from about $50,000 of profit. At $100,000 an LLC taxed as an S corp costs $17,891 a year against $22,403 for a plain LLC, $4,512 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in South Dakota?

The state charges Annual Report, $55 a year. Forming one costs $150.

Does South Dakota recognise the S corp election?

Yes. The federal election carries over with no separate state form. No state income tax, so the S election has no state tax effect.

What income tax does South Dakota charge?

South Dakota has no personal income tax on wages or business income. South Dakota has no corporate income tax.

Sources checked 2026-10-20. Each figure links to the state or IRS page it comes from.

Other states