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The state of South Dakota Doesn't seem to acknowledge SCorps but I want to move my business there! What should I o?

  • February 26, 2025
  • 1 reply
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Monica R
HoneyBook Community Team
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@Impact Hypnotherapy’s question from the Your Guide: Sole prop, LLC, or S-Corp webinar with ​@Geily Romero

The state of South Dakota Doesn't seem to acknowledge SCorps. I wanted to move my business from Colorado to South Dakota but I'm not sure how to do that being an SCorp and things are confusing and tricky.  Do you have any recommendations or advice for moving a business to the State of S.D.?

1 reply

Geily Romero
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  • Newcomer
  • February 27, 2025

I’m sorry, I’m not familiar with South Dakota specifically, however, I will say that electing to be treated as an S-Corp is a process that is done with the IRS at a federal level. I’d assume you could establish an LLC is South Dakota and then file Form 2253 to be treated as an S-Corp for tax purposes. As daunting as it may sound, I would go straight to the source, if you haven’t already,  and I would recommend contacting the IRS themselves and double checking with them and then maybe trying to contact the state (South Dakota). Making a few calls may be helpful.