We earn commissions if you shop through the links below. Read more
Back to Certificate of Good Standing Guides
Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Updated on February 3, 2023
In South Dakota, potential creditors or investors might request a certificate of good standing for your LLC, and you’ll need to provide one or risk losing crucial financing. Thankfully, this guide provides all the information you need to get this certificate in South Dakota.
In South Dakota, a certificate of good standing verifies that you’re a legally registered business entity that is up to date on all filings and fees and permitted to do business in the state. You do not have to obtain this certificate to do business in South Dakota, or in any state. It is simply used to verify your strong status to third parties such as banks.
Your LLC only needs a certificate of good standing if another party requests one. For instance, a bank might request one if you’re opening a bank account or applying for a loan. A credit firm might request one if you apply for a business credit card, or if you set up credit card processing for customer payments.
If you’re registering as a foreign LLC in another state, you will probably be asked for a certificate of good standing.
A foreign entity is simply a business entity doing business in a state other than the one in which it’s registered. For example, if your business is registered in South Dakota but you also do business in Georgia, you’ll need to register a foreign entity in Georgia.
In South Dakota, the Secretary of State issues certificates of good standing. Just go to the secretary of state’s website to fill out the required form. The cost is $20 and you should receive your certificate immediately.
You must be registered as a business entity in that state. Operating as a sole proprietorship or a partnership does not require registration in South Dakota, so those entities are not able to obtain a certificate of good standing.
Corporations and LLCs, like your business, must be registered with the state, so they are able to obtain the certificate.
Again, the fee to obtain a certificate of good standing in South Dakota is $20. But it’s well worth it because this is an official document that proves your business’ financial accountability and could open the door to greater investment and expansion.
Published on August 13, 2022
If you’re starting an LLC, the business entity formation process is one of the first and most important hurdles. This step can be terribly complex ...
Read Now
Published on March 9, 2022
A limited liability company (LLC) is an increasingly popular business structure for startups in the US, offering liability protection for ownershipa ...
Read Now
Published on November 24, 2021
In late 2020, no state’s economy grew faster than that of South Dakota, which expanded at about 10% and beat second-place Texas by a sizablemargin ...
Read Now
