Why form a South Dakota Corporation?
There are many advantages to forming a South Dakota corporation for your business. First and foremost is the liability protection of your personal assets. When you form a corporation it helps separate your personal assets from that of your business. A legal corporate entity exists separately from its owners or shareholders. Typically, shareholders (owners) are not liable for the debts and obligations of the corporation or from any litigation where the company is the defendant.
Naming tips for your corporation
A corporation’s name must include Corp, Inc, Incorporated, or Corporation. Also, a South Dakota Corporation cannot have the same name as an existing Limited Liability Company or a Limited Partnership. The name of the Corporation must be distinguishable upon the records of the Secretary of State. To determine distinction, the Secretary of State will ignore certain words and articles such as “an”, “the” “a”, etc… The Secretary of State will also ignore the use of capitalization, punctuation, spaces, and plural forms of words or special characters. Also certain words will be regulated and prior approval may be needed in order to use the word in a corporate name.
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