If you’re doing business in South Dakota, then you need to register your business name with the State of South Dakota. That makes sure you’re able to use that particular name exclusively. No one (except you) can use that business name for their own business transactions.
You may not even realize how much you’ll be using your business name. It’ll be in all your office forms, corporate stationery, and business cards. Every marketing and advertising material you release will feature this business name. It’ll be in all your official business formation documents, in your loan documents, and in every business contract and agreement you sign.
The main problem with not registering your business name in South Dakota is that someone else may already be using it, or someone may use it in the future. After all, South Dakota is a large state with a huge population. Great minds think alike, and it’s not all that improbable that some other people will come up with your business name to use.
So, how do you do this? Registering your business name in South Dakota involves a few crucial steps:
#1. Decide Your Business Structure and Business Name
When you’re running a business (whether in South Dakota or anywhere else), you’ll have to decide the structure you want for your business. It can be a corporation, a limited liability company (or LLC), a partnership, or a sole proprietorship.
The best choice for you will depend on several factors. Do you need personal liability protection? Are you planning on attracting investors? Do you wish to maintain a more complicated business structure? The answers to these questions can help guide you as to what business structure best fits your needs.
Personal Business Names for Sole Proprietorships and Partnerships
Some business owners choose to go with a sole proprietorship because there’s no need to register with the state. This is often the business structure used by freelance operators, along with some business owners and franchisees.
If you wish to run a sole proprietorship, then it will operate with your name by default. The legal name of your business and your personal name will be the same.
With partnerships, the name of the business will have to include all the surnames of the partners. You may have noticed that law firms (which often run as partnerships) are generally named this way, like Dewey, Cheatem, and Howe.
But you have the option of using a different name, not unlike how rappers have their hip-hop names for their musical brands. If you’re running a catering business, then instead of using your personal name, you can call your service something else (like “The Meticulous Catering Service for Foodies”). This is called using a DBA, for “doing business as”.
#2. Follow the South Dakota Naming Rules for Corporations
If you’re running an LLC or a corporation, then there are rules to follow. The most basic rule is that if you’re running an LLC, then the name has to include the phrase limited liability company. As in XYZ Limited Liability Company. But you can also instead use various abbreviations for the phrase, like Limited, Ltd., LLC, or L.L.C.
For a corporation, you have to use one of these terms: incorporated, corporation, or company. Thus, you have the XYZ Corporation.
Instead of XYZ, though, you can use any name or phrase you want using letters and numbers along with other common symbols like “&” and “!”. The same goes if you’re using a brand name for your sole proprietorship or partnership.
There are some restrictions, however.
You can’t just use words like University, Attorney, or Bank. You’d have to get approval from the appropriate overseeing body or licensed individual.
You can’t also include words that will liken the name of your LLC with an agency under the Government such as the State Department or FBI.
If you’re planning to name a corporation in the state of South Dakota, your business cannot be in any way similar to the names of other corporations or LLCs in the State of South Dakota.
If you’re registering a name for a corporation, it is advisable you go through the statutes that concern the naming of corporations in the state of South Dakota to get a better understanding of the process.
You can always get yourself a registered agent service that can help you with your business name search. Registered agent services are anyway (though theoretically, you can do it yourself) quite affordable now. These services know all the rules by heart.
#3. Check the Business Name Availability
You may have come up with a great, catchy business name for your corporation, but then again, it’s entirely possible that somebody else is already using that same business name in South Dakota. The business name rules online also define whether similar business names are allowed or not. However, you have to check first to see whether the business name you’ve chosen is already in use or not in South Dakota. You can do this using the South Dakota Secretary of State business name search tool. Note that the search requirements vary for formal business structures such as LLCs and Corporations.
Or, your registered agent service can do this search for you, including searching for similar business names. That way, you don’t end up with a business name that’s too similar to another business name. That can just lead to confusion, even if the name is theoretically allowed.
You need to have a website for your business as most clients and customers may regard your corporation as not quite legit if you don’t have one. At the very least, you’ll want to acquire a web domain to make sure other business entities can’t use it for their own ends.
With your web domain and website, you should also have your own professional email account. While your Gmail account may do well enough for your private use, you need an account that ends with “@yourcompanyname.com”. Again, it reassures people that you’re running a legit business.
#4.Register Your Business Name
Now that you’ve decided on your business structure and you’ve checked that your chosen business name is actually available, the next logical step is registering your business with the state. You can do this on your own, by filing the necessary documents with the South Dakota Secretary of State. You’ll need to file your Articles of Organization if you’re forming an LLC, or file the Articles of Incorporation if you’re forming a corporation.
Your best bet is to go with an online business incorporation service, and the best ones offer registered agent services as well. They will file the documents for you for a very modest fee. That way, you know that all the details are handled properly and you can focus on actually setting up your business.
Tips on Picking Your Business Name
The right name can really help to get your business going, while the wrong business name can lead to customer dissatisfaction and even legal troubles. With the right business name, you can then proceed with your marketing and advertising more effectively.
So, how do you pick the right business name? Here are some tips that can help:
- Stick to easy-to-spell names. That way, when people hear about your brand, they’re more able to do research and find your brand online. In the same vein, go with names that are easy to pronounce. You don’t want to keep correcting people on how to pronounce your business name properly. You then may have to end up with a mispronounced business name.
- Don’t go with a that’s too narrow or limiting. That’s a problem that even Google encountered when they expanded their business beyond their search engine. They eventually formed Alphabet Inc. to become their mother company. That’s also the problem that Amazon avoided.
- Use Google to see if your business name is already in use. While the name may not yet be registered in South Dakota, it’s still something to avoid so you won’t have any online confusion.
- Try to go with meaningful names. The name itself can have a nice history, or it can clearly imply your business goals.
- Go with catchy names as well. It should look good on paper, and sound nice, too. It should be something that catches your customers’ attention, instead of a boring business name that people forget quickly. At the same time, don’t be too weird—it can make customers think that you’re unprofessional.
- Be happy with your business name. Don’t settle. You’ll have to live with that name, and customers can sense when you aren’t all too sold with the business name you’ve chosen. You have to be able to say your business name with pride.
Changing Your Business Name
You may decide to change your business name in the future. It may be because you’re transferring to another location in South Dakota, or maybe you’re changing or expanding your products and services. You may even go for a more politically neutral name, so you don’t end up like the Washington Redskins football team.
You can do this by filing for an amendment to the legal name of an existing business, or a DBA name. You’ll then fill the Amended Articles of Organization for LLCs form to file for a change in the legal name of your LLC or the Application for Amended Articles of Incorporation – Domestic Business Corporation of Amendment for corporations form for change in the legal name of your corporation.
You’ll then mail both forms with a $60 filing fee.
How much will it cost to register my business name?
Incorporating your LLC business in South Dakota will cost you $150 to file your Articles of organization online with the Secretary of State. You’ll have to pay a cost of $165 for paper filling. The fee will cover the business name registration as well.
Is it better to use an online incorporation service?
Yes. It is a better choice for most business owners because you have professionals covering each step of the incorporation process including registering your business name. You can get services such as registered agent services, document forms and templates you can use, and checking on business name availability. These services can even help you set up your website, or provide assistance in various matters that new startups may require.
What the online incorporation service really does is free you from the tedious job of minding the details when you’re starting your business. That way, you’re able to focus your efforts more on actually setting up your business and then getting it running!
Do I need a business license?
Yes, that depends on the kind of business you’re running. You can check out the South Dakota Department of Labor, License, and Regulation for occupational businesses that require licenses.
Can a trademark help?
Yes, a trademark can help. It costs around $225 to $400 plus any attorney fees as well as a renewal fee every 10 years.
But you do get nationwide protection for your brand name. That helps a lot, especially when your online sales go nationwide. It may not be necessary for a local catering service or plumbing business in some city in South Dakota, but for those in the selling business, it can really help.