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Invest in South Dakota
A short guide for companies expanding into South Dakota: the economy at a glance, the rules and steps to set up, and who can help, each with its source.
1. South Dakota at a glance
Population
935,094
The population was 935,094 as of July 1, 2025.
Source: Census Bureau, state population estimates, July 1, 2025 (opens in a new tab) · as of 2025
GDP
US$82 billion
GDP was US$82,001.9 million in 2025, in current dollars.
Source: BEA, GDP by state, 2025 (annual update, September 2026) (opens in a new tab) · as of 2025
GDP per person
US$87,694
GDP per person was US$87,693.8 in 2025, in current dollars, computed from BEA's GDP and the Census Bureau's population estimate.
Source: BEA, GDP by state, 2025 (annual update, September 2026) (opens in a new tab) · as of 2025
Real GDP growth
1.8%
Real GDP growth was 1.8 percent in 2025, BEA's published percent change.
Source: BEA, GDP by state, 2025 (annual update, September 2026) (opens in a new tab) · as of 2025
Currency and inflation: see the United States at a glance
2. Before you set up
The body that handles foreign investment, South Dakota’s limits on foreign ownership, the zones and other rules for investors, as the guide found them.
SelectUSA names the South Dakota Governor's Office of Economic Development as the state economic development organization for South Dakota.
Source: International Trade Administration, SelectUSA state economic developers (opens in a new tab) · as of November 3, 2026
From July 1, 2026, a prohibited entity may not hold any real property interest in South Dakota while a military installation exists in the state.
Source: South Dakota Legislature, Senate Bill 60, 2026 (enrolled) (opens in a new tab) · as of March 3, 2026
The Foreign-Trade Zones Board's 2024 annual report lists 1 foreign-trade zone in South Dakota.
Source: Foreign-Trade Zones Board, annual report, 2024 (opens in a new tab) · as of 2024
A prohibited entity may not own agricultural land in South Dakota, and may lease it or hold an easement only for research up to 320 acres or contract livestock feeding.
Source: South Dakota Legislature, Codified Law 43-2A-2 (opens in a new tab) · as of November 3, 2026
Show 10 more
A prohibited entity is a foreign entity, government or person from China, Cuba, Iran, North Korea, Russia or Venezuela, with no ten percent ownership threshold.
Source: South Dakota Legislature, Codified Law 43-2A-1 (opens in a new tab) · as of November 3, 2026
Other foreign entities, governments and persons may not own more than 160 acres of agricultural land in South Dakota, and leases and easements are not limited.
Source: South Dakota Legislature, Codified Law 43-2A-2 (opens in a new tab) · as of November 3, 2026
Since July 1, 2026, agricultural land a foreign owner inherits counts toward the 160-acre limit; a 2026 act removed the inheritance exemption.
Source: South Dakota Legislative Research Council, 2026 title summaries (opens in a new tab) · as of November 3, 2026
Where inherited agricultural land has a minority owner in violation, that owner's share is forfeited, plus a civil penalty equal to its fair market value.
Source: South Dakota Legislature, Senate Bill 40, 2026 (enrolled) (opens in a new tab) · as of March 5, 2026
A person who files a federal report on foreign investment in agricultural land must file a copy with the Department of Agriculture and Natural Resources.
Source: South Dakota Legislature, Codified Law 43-2A-7.1 (opens in a new tab) · as of November 3, 2026
A missed state copy of that report carries a civil penalty of up to ten percent of the fair market value of the land interest.
Source: South Dakota Legislature, Codified Law 43-2A-7.1 (opens in a new tab) · as of November 3, 2026
A prohibited entity that gets a real property interest must dispose of it within two years, or three years if it came by descent or devise.
Source: South Dakota Legislature, Senate Bill 60, 2026 (enrolled) (opens in a new tab) · as of March 3, 2026
The 2026 act on real property does not reach interests of entities cleared by the Committee on Foreign Investment in the United States, or of citizens and lawful permanent residents.
Source: South Dakota Legislature, Senate Bill 60, 2026 (enrolled) (opens in a new tab) · as of March 3, 2026
A prohibited person may not control, operate or own an electric facility in South Dakota, and must divest an interest within one year of acquiring it.
Source: South Dakota Legislature, House Bill 1049, 2026 (enrolled) (opens in a new tab) · as of March 3, 2026
A South Dakota act passed at a regular session that sets no date takes effect on the first day of July after its passage.
Source: South Dakota Legislature, Codified Law 2-14-16 (opens in a new tab) · as of November 3, 2026
Investment rules across the United States: see Invest in the United States
3. Steps to set up
The main steps, in order, each with the body responsible and its official page.
Setting up in South Dakota
- A foreign corporation applies to the Secretary of State for a certificate of authority before it transacts business in South Dakota.South Dakota Secretary of StateUS$750 filing feeOfficial page (opens in a new tab)
Source: South Dakota Legislature, Codified Law 47-1A-122 (opens in a new tab) · as of November 3, 2026
- Apply for a South Dakota sales tax license through the Department of Revenue's online application if you have a physical presence or sales above US$100,000.South Dakota Department of RevenueOfficial page (opens in a new tab)
Source: South Dakota Department of Revenue, sales and use tax page (opens in a new tab) · as of November 3, 2026
- Register as an employer for reemployment assistance tax online with the Department of Labor and Regulation.South Dakota Department of Labor and RegulationOfficial page (opens in a new tab)
Source: South Dakota Labor and Regulation, reemployment assistance forms (opens in a new tab) · as of November 3, 2026
- Check the Department of Labor and Regulation's lists for any state license your activity needs, such as banking, insurance or a trade license.South Dakota Department of Labor and RegulationOfficial page (opens in a new tab)
Source: South Dakota Labor and Regulation, home page (opens in a new tab) · as of November 3, 2026
Show 2 more set-up steps
- If you own agricultural land and file a federal foreign investment report, file a copy with the Department of Agriculture and Natural Resources.South Dakota Department of Agriculture and Natural ResourcesOfficial page (opens in a new tab)
Source: South Dakota Legislature, Codified Law 43-2A-7.1 (opens in a new tab) · as of November 3, 2026
- Ask the Governor's Office of Economic Development about awards before you commit to a site.South Dakota Governor's Office of Economic DevelopmentOfficial page (opens in a new tab)
Source: South Dakota Legislative Research Council, 2026 title summaries (opens in a new tab) · as of November 3, 2026
Steps that apply across the United States: see Invest in the United States
4. Organizations that help investors
Start with GOED and Secretary of State. Each card links to the organization’s own site.
Each card says what it can help with:Get adviceFind financeMeet requirementsResearch markets
Investment and business setup
- Get advice
State economic development agency
GOED
South Dakota Governor's Office of Economic Development
Makes awards from the employer's investment in South Dakota's future fund for research and economic development projects, under rules a 2026 act requires it to write.
Visit GOED (opens in a new tab)Source: South Dakota Legislative Research Council, 2026 title summaries (opens in a new tab) · as of November 3, 2026
State business filings office
Secretary of State
South Dakota Secretary of State
Files the application for a certificate of authority that a foreign corporation needs before it transacts business in South Dakota.
Visit Secretary of State (opens in a new tab)Source: South Dakota Legislature, Codified Law 47-1A-1503 (opens in a new tab) · as of November 3, 2026
Show 1 more organization
- Get advice
Regional economic development organization
Sioux Falls Development
Sioux Falls Development Foundation
Works with the City of Sioux Falls and the Governor's Office of Economic Development on business projects in Foundation Park.
Customs and tax
- Meet requirements
State tax authority
Revenue Department
South Dakota Department of Revenue
Licenses businesses for state sales and use tax and administers the bank franchise tax; the state levies no corporate income tax.
Visit Revenue Department (opens in a new tab)Source: South Dakota Department of Revenue, business taxes page (opens in a new tab) · as of November 3, 2026
Chambers and industry associations
State wheat commodity commission
Wheat Commission
South Dakota Wheat Commission
Uses wheat checkoff funds for international marketing through United States Wheat Associates and the Northern Crops Institute.
Visit Wheat Commission (opens in a new tab)Source: South Dakota Wheat Commission, home page (opens in a new tab) · as of November 3, 2026
- Get advice
State corn promotion council
Corn Council
South Dakota Corn Utilization Council
Collects the one-cent-per-bushel corn checkoff and funds research and development of new uses and markets for corn and corn by-products.
Visit Corn Council (opens in a new tab)Source: South Dakota Corn Utilization Council, news release, September 11, 2026 (opens in a new tab) · as of September 11, 2026
Show 3 more organizations
- Get advice
State soybean promotion council
Soybean Council
South Dakota Soybean Research & Promotion Council
Pays from the soybean checkoff for tours of export and transportation facilities for South Dakota soybean growers.
Visit Soybean Council (opens in a new tab)Source: South Dakota Soybean, See For Yourself tour page, 2026 (opens in a new tab) · as of November 3, 2026
- Get advice
State chamber of commerce
South Dakota Chamber
South Dakota Chamber of Commerce & Industry
Advocates for South Dakota employers and holds business events, including an economic outlook seminar.
Visit South Dakota Chamber (opens in a new tab)Source: South Dakota Chamber of Commerce & Industry, home page (opens in a new tab) · as of November 3, 2026
- Get advice
Regional chamber of commerce
Sioux Falls Chamber
Greater Sioux Falls Chamber of Commerce
Represents nearly 2,000 Sioux Falls area members, hosts networking events and workshops, and advocates on business policy at every level of government.
Visit Sioux Falls Chamber (opens in a new tab)Source: Greater Sioux Falls Chamber of Commerce, home page (opens in a new tab) · as of November 3, 2026
5. Worth knowing
Reserved sectors
From July 1, 2026, entities from six named countries may not hold any real property interest in South Dakota while a military installation exists.
What to do: Check whether any owner or lender comes from a listed country before you choose a site.
Sources: South Dakota Legislature, Senate Bill 60, 2026 (enrolled) (opens in a new tab); South Dakota Legislature, Codified Law 43-2A-1 (opens in a new tab) · as of November 3, 2026
Electric facility ownership
A 2026 act bars a prohibited person from controlling, operating or owning an electric facility in South Dakota, and makes agreements from July 1, 2026 that give such control unenforceable.
What to do: Check your owners and lenders against the act's list before you bid on power generation or transmission assets.
Sources: South Dakota Legislature, House Bill 1049, 2026 (enrolled) (opens in a new tab); South Dakota Legislature, Codified Law 5-18A-1 (opens in a new tab) · as of November 3, 2026
Business taxes
South Dakota levies no corporate or individual income tax, and the law raises its 4.2 percent sales tax rate to 4.5 percent on July 1, 2027.
What to do: Confirm the sales tax rate in force on your start date with the Department of Revenue before you price.
Sources: South Dakota Department of Revenue, business taxes page (opens in a new tab); South Dakota Legislature, Codified Law 10-45-2 (opens in a new tab) · as of November 3, 2026
Incentive awards
A 2026 act sets rules for awards from the employer's investment in South Dakota's future fund, including a business document and reimbursement of money already spent.
What to do: Ask the Governor's Office of Economic Development about project eligibility before you count on an award.
Source: South Dakota Legislative Research Council, 2026 title summaries (opens in a new tab) · as of November 3, 2026
Across the United States: see Worth knowing in Invest in the United States
6. How Promote:Global helps
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- Organize your next stepsKeep each product and market in a project, with a roadmap of steps you work through.
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Promote:South Dakota is an independent guide by Promote:Global, not an official government portal. The organizations named here are independent public and membership bodies, not Promote:Global partners, and every link goes to their own site.
Facts read from public sources, with an editorial cut-off of November 3, 2026. Nothing here is investment, legal, tax or sanctions advice. Check current status with the organization before you rely on it.