South Dakota Foreign Qualification

Foreign qualification is the process by which a business entity from another state seeks permission to conduct business in South Dakota. This involves registering with the Secretary of State and complying with the state's laws and regulations to ensure legal operation within the state.

There are 2 different ways to foreign qualify in South Dakota depending on your legal entity type and tax classification. Follow the guide below to help you register with the Secretary of State in South Dakota or use Mosey to do it.

Use Mosey to register with the Secretary of State in South Dakota.

South Dakota Foreign Registration for LLC

All limited liability companies must obtain a Certificate of Authority from the Office of the Secretary of State before operating in South Dakota. Like most states, South Dakota provides a list of activities not considered "doing business" in lieu of defining "doing business."

  1. Obtain a Certificate of Existence

    South Dakota requires a Certificate of Existence from your home state issued within 90 days.

  2. Establish a Registered Agent

    You will need to appoint a registered agent in order for your Certificate of Authority filing to be approved. Your resident agent must have a South Dakota street address. It can be any South Dakota resident or a corporation qualified to do business in South Dakota.

  3. Apply for a Certificate of Authority

    You can submit your Application for Certificate of Authority and pay the filing fee online with the South Dakota Secretary of State.

South Dakota Foreign Registration for C Corporation

All corporations must obtain a certificate of authority from the Office of the Secretary of State before operating in South Dakota. Like most states, South Dakota provides a list of activities considered not "doing business" in lieu of defining "doing business."

  1. Obtain a Certificate of Existence

    South Dakota requires a Certificate of Existence from your home state issued within 90 days.

  2. Establish a Registered Agent

    You will need to appoint a registered agent in order for your Foreign Corporation Certificate of Authority filing to be approved. Your resident agent must have a South Dakota street address. It can be any South Dakota resident or a corporation qualified to do business in South Dakota.

  3. Apply for a Certificate of Authority

    The Application for Certificate of Authority – Foreign Business Corporation can be submitted online with the South Dakota Secretary of State.

What else do I need to know?

Once you are registered with the Secretary of State, you may have additional requirements to maintain your "good standing" in the state. Failing to do so can result in fines, back taxes, and forfeiting certain priveleges within the state.

Maintaining a Registered Agent

Most states require that you have a registered agent that can receive important mail from the Secretary of State should they need to contact you. There are many commercial options available or you can use Mosey to be your registered agent and keep your information private in South Dakota.

Annual Reports and Taxes

In addition to maintaining a registered agent, most states require you to file a report annually. Registration can also trigger state taxes such as a franchise tax or income tax. You can use Mosey to identify these additional requirements to maintain good standing in South Dakota.

Review your compliance risks, free.

More from the blog

Learn how to keep your business compliant in all 50 states across payroll, HR, Secretary of State, and tax.

Certificate of Good Standing: What Is It & How It Works

Consider the following scenario: You’re the founder of a new startup, which you incorporated in Delaware, but you live in California. You need to register your company as a foreign entity to do business there. But before you can register in California, you’ll need to obtain a Certificate of Good Standing from your incorporated state of Delaware. Essentially, a Certificate of Good Standing validates the legitimacy of your business. Business owners might use a Certificate to register to do business in another state, apply for a business loan or insurance, seek financing from investors, or lease commercial space.

Alex Kehayias | Apr 3, 2023

How Many Pay Periods in a Year? Employer's Guide

Managing employee payroll is vital to running a successful business. While many tasks are associated with payroll management and compliance, they’re all based on which employee payroll schedules you choose. Not all companies operate on the same payroll schedule. While most companies pay their employees biweekly, that is not your only option as an employer. The best payroll schedule for your company depends on many factors, including but not limited to the size of your business.

Kaitlin Edwards | Oct 30, 2023

Hiring Remote Employees: Everything You Need to Know

The decision to hire remote workers can transform your business. You’ll have access to a national (or even global) talent pool, save on overhead costs, and provide a valuable incentive to join your team: According to a 2022 Future Forum study, 80% of knowledge workers desire a flexible work location. Remote work can also increase employee satisfaction and productivity, improve work-life balance, and even support diversity and inclusion—employees who lack transportation, can’t afford to live near the office, or even need to pick up the kids every day at noon won’t necessarily be precluded from full participation.

Gabrielle Sinacola | Apr 17, 2023

Ready to get started?

Sign up now or schedule a free consultation to see how Mosey transforms business compliance.