South Dakota Certificate
of Good Standing
CONTENTS
Managing small business taxes can be challenging, especially for solo entrepreneurs. Achieving compliance is a significant accomplishment that deserves recognition.
Maintaining compliance not only helps you avoid legal issues but also enhances your business’s reputation. It can lead to new opportunities, making it a mark of distinction.
One way to demonstrate compliance in South Dakota is by obtaining a certificate of good standing. This article will explain what this document is and how to acquire one.
What's a Certificate of Good Standing?
A certificate of good standing, also known as a certificate of existence or certificate of compliance, is an official document issued by the South Dakota Secretary of State. It confirms that your business is legally registered and compliant with state regulations, including up-to-date filings and no outstanding legal issues.
While not legally required to operate your business, there are situations where obtaining this certificate is beneficial.
When might you need a certificate of good standing? Here are some examples.
Banking and Financing
Financial institutions may request a certificate of good standing when you open a business bank account or apply for a loan. This document assures them that your business complies with South Dakota regulations, increasing their confidence in your financial responsibility.
Business Transactions
Is your company involved in mergers, acquisitions, or other significant transactions? Then other parties may request this certificate to verify your business’s legitimacy and compliance.
Licensing and Permits
Certain industries may require a certificate of good sanding to obtain specific licenses or permits. That way, you’ll demonstrate adherence to state regulations.
Renewals and Compliance
Some regulatory bodies may require periodic submission of this certificate to confirm ongoing compliance. This is necessary for certain renewals.
Contracts and Bids
Are you entering significant contracts or bidding for government projects? Then a certificate of good standing can establish trust and credibility with other parties.
Foreign Qualification
If you plan to expand your business into another state, you may need to provide a certificate of good standing from South Dakota. This may be part of the registration process.
How to Obtain a Certificate of Good Standing in South Dakota
Before requesting the certificate, ensure your business is compliant by:
- Filing all necessary annual reports
- Paying all required taxes and fees
Do you still need to start your company? Then use our free business registration service. The only thing you have to pay is the state fee.
Once compliance is confirmed, follow these steps.
Access the South Dakota Secretary of State's Website
Visit the South Dakota Secretary of State’s Business Services page. Navigate to the Certificate of Good Standing/Existence section.
Enter your Business ID to verify your entity. If you don’t know your Business ID, use the Business Information Search to find it.
The fee for obtaining the certificate is $20. Payments can be made online using Visa, MasterCard, American Express, or Discover credit or debit cards.
Once processed, a color PDF of the certificate will be available for immediate download. Note that online requests will not receive a mailed or emailed certificate.
Validity of a South Dakota Certificate of Good Standing
South Dakota does not specify an expiration date for the certificate of good standing. However, the requesting party typically determines its validity. Many entities prefer a certificate dated within 60 days, while others may require one within 30 days.
Always check with the requesting organization to ensure the certificate meets their requirements.
Demonstrate Your Business's Compliance
Obtaining a South Dakota certificate of good standing showcases your business’s adherence to state regulations and enhances its credibility. The process is straightforward and affordable, providing official confirmation of your company’s compliance.
If you haven’t established your business yet, consider using our professional service to assist with the formation process. Business Anywhere offers fast and affordable business formation services to help you get started, so sign up for an account today.
South Dakota Certificate of Good Standing FAQs
Still have questions about this document? Then here are some FAQs about the South Dakota certificate of good standing.
Can I obtain a certificate of good standing for a business that is inactive?
No, only businesses that are currently in good standing with the state are eligible for this certificate. If your business is inactive or has been dissolved, you must first reinstate it by filing the necessary paperwork and paying outstanding fees.
Can sole proprietors or general partnerships get a certificate of good standing?
No, South Dakota does not issue certificates of good standing for sole proprietorships or general partnerships, as these business structures are not formally registered with the state. Only corporations, LLCs, and other registered entities can request one.
Can I use a South Dakota certificate of good standing for international purposes?
If you need to use the certificate outside the US, you may need to get an apostille or certification from the South Dakota Secretary of State. This ensures the document is recognized in foreign countries that are part of the Hague Apostille Convention.
Can I request multiple copies of a certificate of good standing?
Yes, you can request multiple copies. However, each certificate may require a separate fee unless otherwise stated by the South Dakota Secretary of State’s office.
Step-by-Step Guide to
Forming a South Dakota LLC
South Dakota LLC Starter Guide
A step-by-step guide to forming an LLC in South Dakota, covering all legal and operational requirements.
1. South Dakota Name Search
Learn how to check the availability of your desired LLC name and ensure compliance with South Dakota naming rules.
2. South Dakota Registered Agent
Understand the role of a registered agent and how to choose one for your South Dakota.
4. South Dakota Operating Agreement
Discover why an Operating Agreement is crucial for defining the structure and management of your LLC.
5. South Dakota EIN Number
Learn how to obtain an Employer Identification Number (EIN) from the IRS for tax and banking purposes.
6. South Dakota Business License
Get information on the required business licenses and permits for operating legally in South Dakota.
