Do I Have to Hire a South Dakota Registered Agent?
If you’re doing business in South Dakota, then you’ll likely need a South Dakota registered agent, but you don’t necessarily need to hire one. Skim this article to learn:
- What a South Dakota registered agent does
- Whether you’ll need to have one
- When it’s smart to hire one
- When it’s smart to serve as your own
- How to find a good one
Table of Contents
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Overview: What is a South Dakota Registered Agent?
A South Dakota registered agent is a legally designated individual or entity responsible for receiving important legal and tax documents on behalf of South Dakota businesses. This includes service of process, annual reports, and other critical communications from the South Dakota Secretary of State. The role of a registered agent is crucial for maintaining the good standing and legal compliance of any business with the South Dakota Secretary of State.
Businesses That Must Keep a South Dakota Registered Agent
Virtually all formal business entities, including LLCs, corporations, and partnerships, are required to maintain a registered agent with a physical address in South Dakota. This ensures that the business can be reliably contacted by the state and served with legal documents if necessary.
- Profit Corporation.
- Nonprofit Corporation.
- Professional Corporation.
- Limited Liability Company (LLC)
- Limited Partnership (LP)
- Limited Liability Company (LLP)
- Limited Liability Limited Company (LLLP)
- Business Trust.
Businesses That Don’t Need a South Dakota Registered Agent
Sole proprietorships and general partnerships not formally registered with the state are not required to appoint a registered agent. However, even these businesses might benefit from the services of a registered agent for privacy, compliance, and expertise reasons.
- Sole proprietors
- General partnerships
What are noncommercial Registered Agents?
Organization and incorporation paperwork differentiates commercial and noncommercial registered agents. Noncommercial registered agents are usually individual volunteers, such as an owner, an employee of the company, or a friend or family member of the business owner. They agree to act as the registered agent without being part of a business that provides registered agent services as a paid service. Noncommercial agents do not charge a fee for their services, and their appointment is often based on trust and personal relationship with the business owner.
Why People Hire a Commercial South Dakota Registered Agent
Privacy
Hiring a commercial registered agent helps protect your personal privacy by keeping your home address off public records. This is especially beneficial for home-based businesses or those wishing to maintain a level of separation between their business and personal life.
In the state of South Dakota’s a registered agent can use their information instead of yours on the articles of organization in lots of places, including:
- Principal office address
- Registered agent address
- Mailing address
- Organizer
Compliance
A commercial registered agent ensures that all legal documents are received and handled promptly, reducing the risk of non-compliance with state laws. They can also help navigate the complex landscape of South Dakota’s business regulations, keeping your business in good standing.
Expertise
Registered agent services often come with a level of expertise and knowledge that can be invaluable, particularly for new business owners. They understand the ins and outs of South Dakota’s legal requirements and can provide guidance on staying compliant.
Be Your Own Registered Agent or Hire a Pro
South Dakota state law allows business owners to act as their own registered agents, but is it the best choice for you? While being your own agent can save money, it requires a thorough understanding of what the role entails and a commitment to be available during business hours to receive legal documents.
How to Serve as Your Own South Dakota Registered Agent
What’s Required to Serve as a Registered Agent in South Dakota
To serve as your own registered agent, you must:
- Be 18 years or older.
- Have a physical address in South Dakota where you can receive documents during normal business hours.
- Be willing and able to ensure all legal and state documents are handled appropriately.
Make it Official
To officially designate yourself as your own registered agent, you must include your name and South Dakota address on your business’s formation documents filed with the South Dakota Secretary of State. You must also be prepared to publicly list this information in state business records.
South Dakota Registered Agent Services We Recommend
Best Budget South Dakota Registered Agent
Based in Kalispel, South Dakota Registered Agent ($49/year) has a fantastic record of reliability. In addition to registered agent services, they offer same day digital scans, mail forwarding, and compliance services. They do a great job and have helpful, friendly customer service.
Best Premium South Dakota Registered Agent
Northwest Registered Agent ($125/year) These guys will form your LLC for $39, and will also list their address instead of yours wherever possible on the Articles of Organization. This is an actual huge benefit, even if your not all that concerned about anonymity. The amount of junk mail and spam calls you’ll avoid alone is worth this benefit.
These are the added benefits that Northwest Registered Agent offers:
- $39 LLC formation
- Same day scans and uploads of all legal and state notifications
- Privacy by Default® (They use every opportunity to keep your contact information off of public documentation and do not sell your data)
Frequently Asked Questions
FAQ 1: Can a South Dakota Registered Agent Help With Business Formation?
Answer: Yes, many South Dakota registered agent services offer assistance with business formation, including filing the necessary paperwork to establish your LLC, corporation, or other business entity in South Dakota. This can include preparing and filing the Articles of Organization or Articles of Incorporation, obtaining an EIN, and ensuring your business meets all state legal requirements from the outset.
FAQ 2: What Happens if My Registered Agent Fails to Notify Me of an Important Document?
Answer: If your registered agent fails to notify you of an important document, such as a service of process, it could have serious legal implications for your business, including default judgments against you. It’s crucial to choose a reliable registered agent service that guarantees prompt and accurate delivery of all documents. If you encounter issues with your registered agent, it might be time to consider changing agents to ensure your business remains in good standing.
FAQ 3: How Often Should I Review My Registered Agent Service?
Answer: It’s a good practice to review your registered agent service annually to ensure it still meets your business needs, especially as your business grows or changes. Consider factors such as the agent’s reliability, customer service quality, and any additional services offered that might benefit your business. An annual review also gives you a chance to compare services and prices to ensure you’re getting the best value.
FAQ 4: Can I Change My South Dakota Registered Agent If I’m Not Satisfied?
Answer: Yes, changing your South Dakota registered agent is a straightforward process. You’ll need to file a Statement of Change of Registered Agent form with the South Dakota Secretary of State, which can often be done online. There’s typically a small fee associated with this change. Make sure to inform your new registered agent of their appointment and ensure they accept and meet all requirements before making the change official.