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

South Dakota is cheaper at formation ($150) than Nevada ($425). Ongoing costs are also different: $155 vs $450 per year. Total over three years: $615 vs $1,775.

Can I form an LLC in Nevada 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 Nevada 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 Nevada vs South Dakota?

Nevada online: 2 business days; South Dakota online: 1 business day. Nevada offers paid expedite from $125. South Dakota offers paid expedite from $50.

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

Nevada: no state income tax, 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. Nevada 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 Nevada 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.

Nevada vs South Dakota LLC comparison

Nevada charges $425 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, South Dakota runs about $1,160 less in total state fees than Nevada. 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 Nevada. 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

Nevada $425

South Dakota $150

South Dakota saves $275

Year 1 total estimate

Nevada $875

South Dakota $305

South Dakota saves $570

Ongoing per year

Nevada $450

South Dakota $155

South Dakota saves $295

3-year total

Nevada $1,775

South Dakota $615

South Dakota saves $1,160

Key differences at a glance

South Dakota costs $275 less to form ($150 vs $425).
South Dakota is $295 per year cheaper to maintain ($155 vs $450).

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.

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.

Nevada South Dakota

Year 1

$875

$305

Year 2

$1,325

$460

Year 3

$1,775

$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 Nevada, business operates there No foreign LLC registration needed. You pay Nevada fees only.	$875	$450	$1,775
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 Nevada with operations elsewhere You pay Nevada's fees plus a typical home-state foreign LLC registration of about $200 per year.	$1,075	$650	$2,375
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

Nevada vs South Dakota: full comparison

Dimension	Nevada	South Dakota
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	2 business days	1 business day
Expedited option Paid fast-track filing	$125	$50
Annual report Required in addition to tax	Required, $350	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	No	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	$425	$750
State sales tax General statewide rate	6.8%	4.2%

Taxes in Nevada 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.

Nevada tax

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

South Dakota tax

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

Ongoing compliance

The recurring filings each state requires after formation.

Nevada

Annual report $350, due on your anniversary month. Registered agent required in Nevada.

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.

Nevada

Check business-name availability on the Nevada entity search.
Appoint a registered agent with a physical Nevada street address.
File Articles of Organization – Limited-Liability Company (NRS Chapter 86) for $425.
Wait for approval. Online typically 2 business days. Paid expedite from $125.
Adopt an operating agreement (recommended, not required by Nevada 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 $350 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 Nevada 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 Nevada 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

Nevada Secretary of State, Commercial Recordings Division

Website: www.nvsos.gov/sos/home
Phone: (775) 684-5708
Email: sosmail@sos.nv.gov
Mail: 202 North Carson Street, Carson City, NV 89701-4201
Hours: 8:00 AM to 5:00 PM Pacific, 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

Nevada Department of Taxation

Website: tax.nv.gov
Phone: (866) 962-3707
Mail: 1550 College Parkway, Suite 115, Carson City, NV 89706
Hours: 7:30 AM to 5:00 PM Pacific, 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 Nevada or South Dakota?

South Dakota is cheaper at formation ($150) than Nevada ($425). Ongoing costs are also different: $155 vs $450 per year. Total over three years: $615 vs $1,775.
Can I form an LLC in Nevada 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 Nevada 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 Nevada vs South Dakota?

Nevada online: 2 business days; South Dakota online: 1 business day. Nevada offers paid expedite from $125. South Dakota offers paid expedite from $50.
Which state has lower taxes for an LLC, Nevada or South Dakota?

Nevada: no state income tax, 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. Nevada 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 Nevada 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

NevadaOpen Nevada LLC guide →
South DakotaOpen South Dakota LLC guide →

More Nevada and South Dakota comparisons

More Nevada vs ...

More South Dakota vs ...

Sources

Filing fee: nevada.public.law/statutes/nrs_86.561 · verified April 21, 2026
Nevada formation bundles three mandatory filings at formation: (1) Articles of Organization $75 (NRS 86.561(1)(a)), (2) Initial List of Managers or Members $150 (NRS 86.263), (3) State Business License $200 (NRS 76.100/76.130). Combined minimum formation cost is $425.
Expedited filing: www.nvsos.gov/sos/businesses/processing-dates · verified April 21, 2026
Nevada offers a 24-hour expedited tier at $125, plus 2-hour service ($500) and 1-hour service ($1,000). Standard SilverFlume online submissions are typically processed within 1-2 business days without expedite. Same-day ($125) and 24-hour ($125) are often the same in practice.
Online filing portal: www.nvsilverflume.gov/home · verified April 21, 2026
SilverFlume is Nevada's official business portal for filing Articles of Organization, Initial List, and State Business License in one combined transaction.
Certificate of Formation form: www.nvsos.gov/sos/home/showpublisheddocument?id=6541 · verified April 21, 2026
Nevada Secretary of State Articles of Organization form for domestic Limited-Liability Company under NRS Chapter 86.
Business name search: esos.nv.gov/EntitySearch/OnlineEntitySearch · verified April 21, 2026
Nevada Secretary of State online entity search.
Operating agreement requirement: nevada.public.law/statutes/nrs_86.286 · verified April 21, 2026
NRS 86.286(1): 'A limited-liability company may, but is not required to, adopt an operating agreement.' No statutory requirement for a written or filed operating agreement.
Publication requirement: www.leg.state.nv.us/nrs/nrs-086.html · verified April 21, 2026
Nevada Chapter 86 imposes no newspaper publication requirement for LLC formation.
Foreign LLC registration fee: nevada.public.law/statutes/nrs_86.561 · verified April 21, 2026
NRS 86.561(1)(a): $75 for registration of a foreign limited-liability company. Foreign LLCs also owe the Initial List ($150) and State Business License ($200), so minimum registration is $425, mirroring domestic formation.
Annual report fee: nevada.public.law/statutes/nrs_86.263 · verified April 21, 2026
NRS 86.263 sets the Annual List of Managers or Members fee at $150. NRS 76.130 sets the annual State Business License renewal at $200. Total ongoing $350 due by the last day of the LLC's anniversary month.
Franchise tax: tax.nv.gov/businesses/commerce-tax/ · verified April 21, 2026
Nevada has no corporate franchise tax. The Commerce Tax applies only when Nevada-sourced gross revenue exceeds $4 million per fiscal year; industry rates range 0.051%–0.331%.
State income tax: tax.nv.gov/tax-types/ · verified April 21, 2026
Nevada has no state personal income tax and no corporate income tax. Nevada Constitution Article 10 prohibits a personal income tax without amendment.
Corporate income tax rate: tax.nv.gov/tax-types/ · verified April 21, 2026
Nevada has no corporate income tax. Recorded as null; the state imposes the Modified Business Tax (payroll) and Commerce Tax (gross receipts) instead.
Sales tax rate: tax.nv.gov/tax-types/sales-tax-use-tax/ · verified April 21, 2026
Nevada base state sales and use tax rate is 6.85%. County add-ons bring combined rates to 6.85%–8.375%.
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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