Are you thinking about building a small business in South Dakota? Well, there are a couple of of things you need to cross off the checklist first, like thinking of the right name. It is one of the most exciting steps when building a small business, but there are some naming rules you need to know about.
South Dakota does not allow two businesses to have the same name, which is why we prepared a step-by-step guide that will help you choose a unique name. Plus, you will also get a few insights that will help your business take off in the state of South Dakota.
Go to:
How to check business name availability in South Dakota
As mentioned, you can’t just pick any name for a South Dakota business, it must be unique and available. How do you find out if a certain name is available? Here’s how:
1. Go to the South Dakota Secretary of State website
To search for a business name and make sure that there are no other businesses with the same name that you had in mind for your small business, you can visit the South Dakota Secretary of State website and use their name search tool. This tool is the state’s database for all registered small businesses.
2. Do a quick search using the simple business name search tool
The business name search tool will allow you to search any business, so make sure you type the exact name or phrase for your business in the search bar. It will allow you to search for the business name and the business ID.
But because you are only searching if your business name is already taken, you should only focus on using the name search and disregard the business ID search bar on the bottom of the tool.
3. Enter search term and see results
Once entering your search keyword or exact name, wait for the results. If there are no exact matches, then the business name you had in mind is up for grabs and you can use it for your business. However, if the business name is already taken, you are going to have to think of a new name.
4. Consider reserving a name
After running a South Dakota business name search, you have two options: You can reserve a name or you can register the name. You should reserve the name if you aren’t planning to set up the business immediately.
South Dakota allows business owners to reserve a name for 120 days for $25.
To do so, you’ll fill out a quick form and provide the payment.
Again, you don’t need to reserve a name if you plan to officially set up your business with the state of South Dakota, but if you’re just doing some homework and plan to set up your business later, reserve the name now so it’s not taken when you’re ready.
5. Check domain name availability
We created a tool that makes it easy.
How to name your South Dakota business
Now that you know a little more about the business landscape in the state, it’s time to start generating a list of names for your business. To do so, follow these steps:
1. Write down basic details about your business
Start by creating a verbal picture of your business. Think about what your business will offer and who it will serve. Will you sell a specific product or service? Who’s going to buy it? Jot down a few details about your company as a starting point.
Next, start creating a list of adjectives that describe your business. Think in terms of keywords. What keywords would your customer use to find the product or service that you offer? Write them down.
2. Stay away from initials and hard-to-say words
There are plenty of businesses that include initials, like A&J Plumbing, but consider upping your game with something a bit more creative and descriptive.
The same goes for names that are hard to say. If your last name is Stackowaski, for example, it’s not conducive to a business name because it’s too hard to pronounce.
3. Don’t pigeon-hole your business
Be careful not to select a name that limits your company’s potential growth. Think about where your business will be in five, ten, even twenty years, and take that into consideration when creating a name.
A company named Bob’s Bargain Books, for example, is a good name, but what if they plan to sell vintage records and cassettes down the road? The name only refers to books, so when vintage music is added people won’t associate it with the store.
4. Consider using a name generator
At this point, you probably have a list of a few ideas. Rather than brainstorm a bunch of different combinations, why not try a name generator? You simply enter a few of the adjectives that you came up with into the search bar and you’ll get a list of possible names.
Name generators can take some of the hassles out of creating a name. Most name generators will only show you available names too, which is helpful.
Check out some of Namechk’s name generators below:
What kind of business structure is right for your South Dakota company?
As you research available business names in South Dakota, you’ll also want to think about what kind of business you want to establish. There are a handful of options to choose from, but some of the most common are Sole proprietorship and LLC.
- A sole proprietorship is ideal for small businesses with no employees that want to test their business out. There’s virtually no paperwork to set up this kind of business, which is a plus. However, a sole proprietorship is not a separate business entity, which means you’re financially and legally responsible for any problems that might arise.
- An LLC, or limited liability company, provides a certain amount of liability protection. Your personal assets and your business are separate with this business structure, which means if the business is sued or goes bankrupt, you will not be forced to use your personal cash reserves to bail the business out.
Steps to register your South Dakota business
Ready to set up your business in SD? Here’s what you do:
1. File your Articles of Organization
Visit the South Dakota Secretary of State website and fill out the Articles of Organization. To fill this out, you’ll need to have an available business name, address, and contact information.
2. Name a registered agent
You’ll also need to name a registered agent. A registered agent is the point-person for your company who will receive important documents like tax notices or legal documents.
A registered agent must be trustworthy and be available during regular business hours when documents are delivered. The business owner can serve as the registered agent in South Dakota, or another person or company can be named.
You might decide to name your accountant or co-founder, for example. You can also hire a registered agent service to serve in this role. Northwest Registered Agent, ZenBusiness, and Bizee are a few examples. These companies will receive documents on your behalf and notify you of their arrival.
3. Pay the filing fee
Every state charges a filing fee to file LLC formation documents with the government. In South Dakota, the cost is $165.
4. Wait for approval
South Dakota will review your application and typically provides approvals within five business days. Once approved, your business is officially set up.
Our picks of the best registered agent services
South Dakota small business facts
Before you start considering business name availability in South Dakota, take a look at these small business statistics from the U.S. Business Administration:
- South Dakota small businesses employed 209,403 people, or 58.2% of the private workforce, in 2017.
- The number of proprietors increased in 2018 by 2.3% relative to the previous year.
- In the fourth quarter of 2019, South Dakota grew at an annual rate of 1.6%, which was slower than the overall US growth rate of 2.1%. South Dakota’s 2019 overall growth rate of 0.7% was down from the 2018 rate of 1.9%.
- Small businesses created 2,082 net jobs in 2019. Firms employing fewer than 20 employees experienced the largest gains, adding 1,521 net jobs. The largest losses were in firms employing 20 to 99 employees, which lost 232 net jobs.
- Private-sector employment decreased 7.8% during the 12-month period ending in April 2020. This was below the increase of 0.9% during the prior 12-month period.
- Firms with fewer than 20 employees have the largest share of small business employment. Figure 1 provides further details on firms with employees.
- In April 2020, the unemployment rate was 10.2%, up from 3.2% in April 2019. This was below the April 2020 national unemployment rate of 14.7%.
- The median income for self–employed individuals at their own incorporated businesses was $51,346 in 2018. For self–employed individuals at their own unincorporated firms, median income was $29,099.
FAQs
To further help entrepreneurs, check out these frequently asked questions about starting a business in South Dakota:
Why is it so important to check on business name availability?
South Dakota will not allow two businesses in the state to have the same name. There are many reasons for this, but at its core, it’s to avoid any confusion. For example, if someone plans to sue Bob’s Fruit Stand and there are two of these companies in the state, things can get complicated quickly.
All businesses must have a unique name. And, you can’t just add a hyphen to a name to make it different. Each name must be “distinguishingly different.”
How do you dissolve a small business in South Dakota?
The first step is to file the Articles of Dissolution. You can submit the forms by mail or in person. Handle the company’s assets and liabilities, including paying off taxes, debts, and distributing the assets to shareholders and members.
After clearing your taxes, you will need to close all the bank accounts, credit lines, permits, and licenses connected to your LLC.
Can you get small business funding in South Dakota?
Many small businesses all around the United States get funding in the form of a bank loan or investments from venture capitalists. However, there are other specific resources for business owners in South Dakota. Start your search on the South Dakota District office site.
Do you need a business plan to start a South Dakota business?
The state doesn’t require a business plan, but if you plan to ask for financial assistance – you’ll need one. Doing so gives your business credibility and a higher chance of enticing investors to invest in your ideas.
Once you have a full-proof business plan, you can pitch your ideas to your family and friends, banks, lenders, and other VCs.
Can I use my internet domain name as the name of my business?
If you started your business online and already have a website with the same name you want to register as a small business firm, you can use that name – as long as it’s available.
If your internet domain name already exists in the small business database in South Dakota, you will not be able to use it.
Should you look for a business name and domain name availability at the same time?
It’s a good idea to do so. It is better to check the domain name and business name availability simultaneously so you can use them both if you want your business to grow online and offline.
CHK_ YOUR NAME RIGHT NOW
Use our engine to quickly check your content right now!
