South Dakota law
Business Laws in South Dakota.
South Dakota has adopted the South Dakota Business Corporation Act and the South Dakota Limited Liability Company Act. LLCs are the dominant entity. South Dakota has adopted the UCC. South Dakota permits noncompetes under SDCL § 53-9-11 with specific reasonableness requirements. South Dakota is a leading U.S. jurisdiction for financial services given its permissive usury laws (since 1981) — Citibank and Wells Fargo Bank credit-card operations are headquartered in Sioux Falls. South Dakota has a pro-business regulatory environment.
Last verified: 2026-04-17
State law
Key South Dakota Statutes
Governs formation, governance, mergers, dissolutions, and shareholder rights of SD for-profit corporations.
Governs formation, operating agreements, management, and dissolution of LLCs.
Noncompetes enforceable if reasonable as to time (up to 2 years) and area. Must protect legitimate business interest. Courts may blue-pencil overbroad provisions.
Provides civil remedies for misappropriation of trade secrets.
South Dakota's adoption of the UCC.
South Dakota eliminated usury caps in 1981 (for banks) — attracting major credit-card and financial-services operations. Citibank moved credit-card HQ to Sioux Falls in 1981; Wells Fargo Bank maintains major operations. SD is a dominant jurisdiction for national-bank credit-card issuance.
State law
Official Sources
Not Legal Advice
This page summarizes publicly available statutes and rules for informational purposes only. It does not constitute legal advice, and no attorney-client relationship is created by viewing this content. Laws change — always verify with the primary source or consult a licensed attorney in South Dakota.
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