Is it cheaper to form an LLC in Louisiana or South Dakota?

Louisiana is cheaper at formation ($100) than South Dakota ($150). Ongoing costs are also different: $130 vs $155 per year. Total over three years: $490 vs $615.

Can I form an LLC in Louisiana if I live in South Dakota?

Yes, but your South Dakota business will almost certainly need to register as a foreign LLC in South Dakota too, which means paying South Dakota's foreign registration fee and any ongoing South Dakota obligations on top of the Louisiana ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

How long does it take to form an LLC in Louisiana vs South Dakota?

Louisiana online: 5 business days; South Dakota online: 1 business day. Louisiana offers paid expedite from $30. South Dakota offers paid expedite from $50.

Which state has lower taxes for an LLC, Louisiana or South Dakota?

Louisiana: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. South Dakota: no state income tax, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Louisiana and South Dakota both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Louisiana or South Dakota to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Louisiana vs South Dakota LLC comparison

Louisiana charges $100 to form an LLC; South Dakota charges $150. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Louisiana runs about $125 less in total state fees than South Dakota. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

On speed, South Dakota typically clears standard online filings faster than Louisiana. Both states offer expedited tiers at an additional cost for filers on tight timelines.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

Louisiana $100

South Dakota $150

Louisiana saves $50

Year 1 total estimate

Louisiana $230

South Dakota $305

Louisiana saves $75

Ongoing per year

Louisiana $130

South Dakota $155

Louisiana saves $25

3-year total

Louisiana $490

South Dakota $615

Louisiana saves $125

Key differences at a glance

Louisiana costs $50 less to form ($100 vs $150).
Louisiana is $25 per year cheaper to maintain ($130 vs $155).
South Dakota has no state individual income tax; pass-through LLC income flows to members without a state layer. The other state does tax at the member level.

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only South Dakota

No state income tax

Both states

Online filing
Paid expedited tier
No entity-level franchise or LLC tax
No publication requirement
Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Louisiana South Dakota

Year 1

$230

$305

Year 2

$360

$460

Year 3

$490

$615

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in Louisiana, business operates there No foreign LLC registration needed. You pay Louisiana fees only.	$230	$130	$490
You live in South Dakota, business operates there No foreign LLC registration needed. You pay South Dakota fees only.	$305	$155	$615
Non-resident forming in Louisiana with operations elsewhere You pay Louisiana's fees plus a typical home-state foreign LLC registration of about $200 per year.	$430	$330	$1,090
Non-resident forming in South Dakota with operations elsewhere You pay South Dakota's fees plus a typical home-state foreign LLC registration of about $200 per year.	$505	$355	$1,215

Louisiana vs South Dakota: full comparison

Dimension	Louisiana	South Dakota
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	5 business days	1 business day
Expedited option Paid fast-track filing	$30	$50
Annual report Required in addition to tax	Required, $30	Required, $55
State-imposed annual tax Franchise, privilege, or LLC tax minimum	None	None
State income tax On pass-through LLC income at member level	Yes	No
Publication requirement Newspaper publication after formation	No	No
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$150	$750
State sales tax General statewide rate	5.0%	4.2%

Taxes in Louisiana and South Dakota

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Louisiana tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 5.5%.

South Dakota tax

No entity-level franchise tax on LLCs. No state income tax.

Ongoing compliance

The recurring filings each state requires after formation.

Louisiana

Annual report $30, due on your anniversary month. Registered agent required in Louisiana.

South Dakota

Annual report $55, due on your anniversary month. Registered agent required in South Dakota.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Louisiana

Check business-name availability on the Louisiana entity search.
Appoint a registered agent with a physical Louisiana street address.
File Articles of Organization (Form 365) for $100.
Wait for approval. Online typically 5 business days. Paid expedite from $30.
Adopt an operating agreement (recommended, not required by Louisiana statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $30 when it comes due.

South Dakota

Check business-name availability on the South Dakota entity search.
Appoint a registered agent with a physical South Dakota street address.
File Articles of Organization (Domestic Limited Liability Company) for $150.
Wait for approval. Online typically 1 business days. Paid expedite from $50.
Adopt an operating agreement (recommended, not required by South Dakota statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $55 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Louisiana and South Dakota (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Louisiana or South Dakota does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Louisiana Secretary of State, Commercial Division

Website: www.sos.la.gov/Pages/default.aspx
Phone: (225) 925-4704
Mail: Commercial Division, Louisiana Secretary of State, P.O. Box 94125, Baton Rouge, LA 70804-9125
Office: 8585 Archives Ave., Baton Rouge, LA 70809
Hours: 8:00 AM to 4:30 PM Central, Monday to Friday

South Dakota Secretary of State - Business Services

Website: sdsos.gov
Phone: (605) 773-4845
Email: corpinfo@state.sd.us
Mail: Capitol Building, 500 East Capitol Avenue, Suite 204, Pierre, SD 57501-5070
Office: 215 E. Prospect Avenue, Pierre, SD 57501
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

Louisiana Department of Revenue

Website: revenue.louisiana.gov
Phone: (855) 307-3893
Mail: 617 North Third Street, Baton Rouge, LA 70802
Hours: 8:00 AM to 4:30 PM Central, Monday to Friday

South Dakota Department of Revenue

Website: dor.sd.gov
Phone: (605) 773-3311
Mail: 445 E Capitol Avenue, Pierre, SD 57501
Hours: 8:00 AM to 5:00 PM Central, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Louisiana or South Dakota?

Louisiana is cheaper at formation ($100) than South Dakota ($150). Ongoing costs are also different: $130 vs $155 per year. Total over three years: $490 vs $615.
Can I form an LLC in Louisiana if I live in South Dakota?

Yes, but your South Dakota business will almost certainly need to register as a foreign LLC in South Dakota too, which means paying South Dakota's foreign registration fee and any ongoing South Dakota obligations on top of the Louisiana ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in Louisiana vs South Dakota?

Louisiana online: 5 business days; South Dakota online: 1 business day. Louisiana offers paid expedite from $30. South Dakota offers paid expedite from $50.
Which state has lower taxes for an LLC, Louisiana or South Dakota?

Louisiana: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. South Dakota: no state income tax, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Louisiana and South Dakota both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Louisiana or South Dakota to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

LouisianaOpen Louisiana LLC guide →
South DakotaOpen South Dakota LLC guide →

More Louisiana and South Dakota comparisons

More Louisiana vs ...

More South Dakota vs ...

Sources

Filing fee: www.sos.la.gov/BusinessServices/FileBusinessDocuments/GetFormsandFeeSc… · verified April 21, 2026
Louisiana Secretary of State Get Forms and Fee Schedule page: Articles of Organization for Domestic LLC (Form 365) filing fee is $100. The Articles must be accompanied by an Initial Report (Form 973). Form must be notarized per La. R.S. 12:1301. Credit card payments carry an additional $5 statutory convenience fee.
Expedited filing: www.sos.la.gov/BusinessServices/FileBusinessDocuments/Pages/default.as… · verified April 21, 2026
Louisiana Secretary of State expedited service: Expedite $30 (24-hour processing) or Priority Expedite $50 (2-4 hour processing). Fees are in addition to the $100 filing fee. We report the cheaper Expedite tier ($30, 24 hours) as the default expedited option.
Annual report fee: www.sos.la.gov/BusinessServices/FileBusinessDocuments/GetFormsandFeeSc… · verified April 21, 2026
Louisiana Secretary of State fee schedule: Domestic Limited Liability Company Annual Reports fee is $30. Due annually on the LLC's anniversary date. Credit card payments subject to a $5 convenience fee.
Franchise tax: revenue.louisiana.gov/tax-education-and-faqs/faqs/corporation-income-f… · verified April 21, 2026
Louisiana Department of Revenue FAQ confirms default-classified LLCs are not subject to Louisiana corporation franchise tax. Per Act 12 of the 2016 First Extraordinary Session and La. R.S. 47:601, franchise tax applies to LLCs only if the LLC is taxed as a C-corporation federally and is not eligible to make an S election. A default partnership-taxed LLC or single-member disregarded LLC owes no franchise tax. Louisiana Act 11 of the 2024 Third Extraordinary Session further repealed corporation franchise tax entirely for periods beginning on or after January 1, 2026.
Operating agreement requirement: legis.la.gov/legis/Law.aspx?d=108568 · verified April 21, 2026
Louisiana Revised Statutes Title 12, Chapter 22 (Limited Liability Company Law), including La. R.S. 12:1301 and 12:1319, permits but does not require a written operating agreement. Recorded as not required.
Foreign LLC registration fee: www.sos.la.gov/BusinessServices/FileBusinessDocuments/GetFormsandFeeSc… · verified April 21, 2026
Louisiana Secretary of State fee schedule: Application of Foreign Limited Liability Company (Form 972) filing fee is $150. Credit card payments subject to $5 convenience fee.
Publication requirement: legis.la.gov/legis/Law.aspx?d=108568 · verified April 21, 2026
Louisiana LLC statute (La. R.S. 12:1301 et seq.) contains no newspaper publication requirement for LLC formation. The Articles of Organization must be notarized but not published.
Business name search: coraweb.sos.la.gov/commercialsearch/commercialsearch.aspx · verified April 21, 2026
Louisiana Commercial Division business filings search (CORA). Name reservations are filed separately for a $25 fee per Form 398.
Sales tax rate: revenue.louisiana.gov/tax-education-and-faqs/faqs/sales-tax/what-is-th… · verified April 21, 2026
Louisiana Department of Revenue FAQ 'What is the sales tax rate in Louisiana?' confirms the statewide sales and use tax rate is 5.00% as of January 1, 2025 (increased from 4.45% prior, under Act 11 of 2024 Third Extraordinary Session). Local parish and municipal sales taxes stack on top.
Corporate income tax rate: revenue.louisiana.gov/businesses/business-taxes/coporate-income-franch… · verified April 21, 2026
Louisiana corporation income tax historically had graduated rates topping at 7.5% for periods beginning on or after January 1, 2022 (3.5% / 5.5% / 7.5%). Louisiana Act 11 of the 2024 Third Extraordinary Session replaced the graduated rates with a flat 5.5% corporate income tax effective for tax years beginning on or after January 1, 2025. Reported here as the current top/flat rate of 5.5%.
Filing fee: sdsos.gov/general-information/filing-fees.aspx · verified April 21, 2026
SD SoS filing fee schedule: Domestic LLC Articles of Organization filed electronically online is $150; filed via paper is $165 (includes the $15 paper filing fee). Online is the default; filingFee captures the online amount.
Expedited filing: sdsos.gov/general-information/filing-fees.aspx · verified April 21, 2026
SD SoS offers expedited processing for any filing at an additional $50 flat fee, defined as completion sooner than the normal course of business on request. Typical expedited turnaround is 24 hours.
Foreign LLC registration fee: sdsos.gov/general-information/filing-fees.aspx · verified April 21, 2026
Foreign LLC Certificate of Authority online filing fee is $750; paper is $765 (includes $15 paper filing fee). This is materially higher than the $150 domestic fee; South Dakota is one of the most expensive states for foreign LLC registration.
Operating agreement requirement: sdlegislature.gov/Statutes/47-34A · verified April 21, 2026
SDCL 47-34A (Uniform Limited Liability Company Act) defines an operating agreement under 47-34A-103 as any valid agreement, written or oral, governing relations among members, managers, and the LLC. The statute does not require the operating agreement to be in writing.
Publication requirement: sdlegislature.gov/Statutes/47-34A · verified April 21, 2026
SDCL 47-34A contains no newspaper publication requirement for LLC formation. Only NY, AZ, and NE require publication.
Annual report fee: sdsos.gov/general-information/filing-fees.aspx · verified April 21, 2026
SD SoS filing fee schedule: LLC Annual Report filed electronically online is $55; filed via paper is $70 (includes the $15 paper filing surcharge). Due first day of the anniversary month each year.
Franchise tax: dor.sd.gov/businesses/taxes/ · verified April 21, 2026
SD Department of Revenue confirms South Dakota does not impose a general corporate income tax or franchise tax. A narrow bank franchise tax applies only to financial institutions under SDCL 10-43.
Corporate income tax rate: dor.sd.gov/businesses/taxes/ · verified April 21, 2026
South Dakota has no corporate income tax. Field set to null.
Sales tax rate: dor.sd.gov/businesses/taxes/sales-use-tax/ · verified April 21, 2026
SD Department of Revenue: the state sales and use tax rate is 4.2%. Municipalities may impose up to 2% additional general sales tax.
Business name search: sosenterprise.sd.gov/BusinessServices/Business/FilingSearch.aspx · verified April 21, 2026
SD SoS Enterprise business information search. Use before filing Articles of Organization to confirm name availability.
Online filing portal: sosenterprise.sd.gov/BusinessServices/Business/RegistrationInstr.aspx · verified April 21, 2026
SD SoS Enterprise online business registration portal. Online LLC filings are typically approved immediately or within one business day; paper filings take about 3-5 business days plus mail transit.
Certificate of Formation form: sdsos.gov/docs/business/llc-domestic-articlesoforganization.pdf · verified April 21, 2026
Official Domestic LLC Articles of Organization fillable PDF published by the SD SoS, used for paper filings.

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