South Dakota Business Opportunities

Mount Rushmore in the Black Hills.
Mount Rushmore in the Black Hills.[1]

A Quick Glance at South Dakota

South Dakota, whose nickname is the Mount Rushmore State, first obtained its statehood in 1889. With a population of 844,877 people, South Dakota is the forty-sixth most populated state in the United States.

If you are considering starting your new business in South Dakota, you might want to look into one of South Dakota's top three most populous cities - Sioux Falls, Rapid City or Aberdeen and also in the state's capital of Pierre.

Top Industry

The largest industry in the state of South Dakota is federal reserve banks, credit intermediation, and related services.

  • The gross domestic product (GDP), of this industry, is roughly $4.6 billion and accounts for 10.1% of South Dakota's GDP.
  • Federal Reserve banks, credit intermediation, and related services also employs 3.7% of South Dakota's private workforce.

Small Businesses

In the United States, the more than 600,000 plus franchised small busineeses account for 40% of all retail sales and provide jobs for some 8 million people. According to the Small Business Administration (SBA), their standard definition of what constitutes as a small business includes a maximum of 500 employees or operations with and/or up to $7 million in revenue, depending on the industry.

  • There are 207,088 small businesses, in the state, of South Dakota.
  • Small businesses in South Dakota, make up 45.3% of the state's private workforce.

State and Local Taxes

Listed below are the state and local taxes, for the state of South Dakota, and how they rank against other states in the U.S.

State Tax Rate Avg. Local Tax Rate Combined Rate Combined Rank* Max Local Tax Rate
4.5% 1.89% 6.39% 31 4.5%
*Combined Rank is rank from highest to lowest tax percentage

California has the highest state tax rate in the United States at 7.25%, but Lousinana has the highest combined tax rate, overall, at 9.98%. Delaware, Montana, New Hampshire and Oregon share the spot for lowest combined tax rates at 0%.

Additional Information

If you need additional information about how to start a business in South Dakota, their official state page might be a good place to start. If you are looking to own your own established franchise in South Dakota, we have collected a comprehensive list of companies that are actively looking to expand in South Dakota, for you to explore.

References

  1. By Dean Franklin - 06.04.03 Mount Rushmore Monument. (Resized by User:ComputerHotline, 20:17, 12. Mai 2007.), CC BY 2.0
  2. Census.gov
  3. Comparison between U.S. states and countries by GDP (nominal) from Wikipedia
  4. Largest Industry in Each State from 24/7 Wall St.
  5. Civilian Labor Force and Unemployment by State from the U.S. Bureau of Labor Statistics
  6. State and Local Sales Tax Rates in 2017 from the Tax Foundation

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