Incorporation in South Dakota

Find the right Business Incorporation attorney in Sioux Falls, SD

Under South Dakota law, a business may incorporate. If it chooses to do so, it is thereafter identified as its own legal entity. After incorporation, buying and selling property, agreeing to contracts and exercising legal rights are considered acts of the business itself and not its owners. To incorporate in South Dakota, a business must file with the Secretary of State in compliance with certain guidelines.

Benefits of Incorporation in South Dakota

Benefits of incorporation are many. The primary benefit is that the liabilities of the business can only be satisfied by the assets specifically invested into the company by the owners. With unincorporated businesses, personal property of owners can be liquidated in order to fulfill the liabilities of the business. A corporation also allows creditors in the Sioux Falls area to assess the credit worthiness of the business as a whole rather than that of its owners, allowing the business to get loans more easily. Lastly, the ownership of a corporation is divided into an abundance of equal portions or "shares" of stock. Without this mechanism, transferring ownership of a business would be impractical.

Costs of Incorporation

Incorporation can be costly. First, a modest filing fee might be charged in South Dakota for any business that wants to incorporate. Also, a corporation is taxed as its own entity. In other words, the profits a corporation makes are now taxed separately, while any disbursements to shareholders are taxed as individual income. This is called double taxation. However, a business might avoid this disadvantage with proper planning and assistance from a local Sioux Falls lawyer.

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Life in Sioux Falls

With a population of about 153,000, Sioux Falls is the largest city in South Dakota. Over the recent decades, Sioux Falls, South Dakota has become one of the most important centers for retail trade, health care, and financial services in the area. Sioux Falls was chartered in 1856 and is home to many large corporations such as Citigroup and Wells Fargo.

In addition to being a vital economic hub for the region, Sioux Falls South Dakota boasts a number of attractions and local events. Every year the city hosts arts culture events like the "Festival of Bands", "Jazz Fest", and an unique "Sculpture Walk" cataloguing the history and progress of the city.

Sioux Falls is also home to Empire Mall, the largest one-story shopping mall in the U.S. With its unique mix of economic growth and its thriving arts culture scene, many residents and visitors appreciate the mix of opportunities that Sioux Falls offers.

Lawyers in Sioux Falls, South Dakota practice law in wide range of legal fields to serve community needs. Many Sioux Falls lawyers contribute to civic and social activities through organizations like the State Bar of South Dakota.

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