You may be asked to provide a certificate of good standing/existence for your South Dakota limited liability company (LLC). Banks and creditors often ask for this document before issuing business credit to ensure you comply.
A South Dakota certificate of good standing/existence is relatively easy to obtain, but it does take some know-how. Lucky for you, this handy guide walks you through the process.
What Is a South Dakota Certificate of Good Standing/Existence?
In South Dakota, a certificate of good standing/existence verifies that your LLC fully complies with state regulations. The state will issue the certificate if you’ve met all deadlines and filed all relevant reports.
Keep in mind that in South Dakota, you’re not required to get a certificate of good standing/existence, but banks and creditors might request one, so it’s wise to have it on hand.
In What Situations Would I Need a Certificate of Good Standing/Existence?
Again, a bank or creditor might request a certificate of good standing/existence when you apply for a business loan or business credit. This is simply part of their due diligence and risk assessment, confirming that your business has no outstanding regulatory issues.
In addition, if you expand your business to other states, you’ll have to register as a foreign LLC. In such cases, the new state may request a certificate of good standing/existence from your home state.
Requirements to Obtain a Certificate of Good Standing/Existence in South Dakota
You must have a registered business entity in the state, either an LLC or a corporation. Sole proprietorships and partnerships do not register with the state, so they cannot obtain a certificate of good standing.
Additionally, South Dakota does not allow general partnerships, reserved names, registered names, and Doing Business As (DBA) business names to request a certificate of good standing/existence.
You’ll also need to comply with all legal requirements for your LLC or corporation in South Dakota. That means you’ll need to be up to date on all South Dakota business licenses, permits, and reporting requirements.
Which Department Issues Certificates of Good Standing/Existence in South Dakota?
In South Dakota, the Secretary of State issues certificates of good standing/existence. You can obtain one online.
How to Get a Certificate of Good Standing in South Dakota
Visit the Secretary of State’s Certificate of Good Standing page.
Click on the green button to get started.
On the next page, enter your Business ID. To double-check your business ID, visit South Dakota’s Business Information Search, where you can search for your business by name.
Go through the following pages, filling out your personal information, email address (if you’d like to receive a copy of the download link), and payment information.
The fee is $20, and assuming your LLC is in full compliance, you should be able to access your certificate online immediately.
Alternatively, from this page, you can print out your document and mail it in with a check to this address:
Secretary of State
500 East Capitol Avenue
Pierre, SD 57501-5070
Your certificate will be mailed to the address you previously provided.
Getting a certificate of good standing/existence may seem like a hassle, but you won’t think that when you need financing. So be sure to get it done when you have a chance— you, and your LLC, will be happy you did.