By Jake Lawson, LLC Formation Strategist
South Dakota takes a unique approach to business name distinguishability that most entrepreneurs don’t understand: they base decisions on how names sound when read aloud, not just how they look on paper.
After helping over 1,200 entrepreneurs navigate LLC formations—including dozens in the Mount Rushmore State—I can tell you this “sounds like” approach makes South Dakota both more predictable and more challenging than other states.
The good news? South Dakota offers two search tools and has some of the most affordable DBA fees in the country. The challenge? Their phonetic-based distinguishability rules catch conflicts that other states might miss.
But here’s what really makes South Dakota entrepreneur-friendly: at just $150 for filing and $10 for DBAs, it’s one of the most cost-effective states for business formation.
Let me walk you through South Dakota’s unique system and show you how to secure your LLC name with confidence.
Why South Dakota’s “Sounds Like” Approach Matters
South Dakota determines name distinguishability based on how names sound when read aloud, not just visual similarity. This makes them unique among the 50 states.
What this means practically:
- “Donut Basket LLC” conflicts with “Doughnut Basket Inc.” (same sound)
- “25 Fiddles LLC” conflicts with “Twenty-Five Fiddles Corp.” (same pronunciation)
- Spelling variations that sound identical are considered the same name
Why this approach is actually helpful: Once you understand their phonetic focus, South Dakota’s decisions become highly predictable. No surprises based on subjective examiner opinions.
Pro tip from my 1,200+ client experiences: South Dakota’s sound-based approach eliminates most gray areas. If two names sound the same when spoken aloud, they’re not distinguishable.
South Dakota’s Dual Search System
South Dakota provides two search tools, each serving a different purpose:
Tool #1: Business Information Search (Primary Tool)
Direct access: sosenterprise.sd.gov/BusinessServices/Business/FilingSearch.aspx
What it does: Shows you comprehensive results of all similar business names
How to use it:
- Enter your core business name (without “LLC”)
- Select “Contains” for search type
- Click “Search”

Why “Contains” is crucial: This catches names with filler words that “Starts With” would miss.
Tool #2: Business Name Availability (Final Check)
Direct access: sosenterprise.sd.gov/BusinessServices/Business/NameAvailability.aspx
What it does: Confirms exact name availability
Limitation: Only checks your specific name—doesn’t show similar names that might conflict
When to use: Final confirmation before filing, not initial research
My South Dakota Search Strategy
Step 1: Comprehensive Phonetic Analysis
For “Riverwalk Studios LLC,” I search:
- Primary search: “Riverwalk Studios”
- Sound-alike check: “River Walk Studio” (might sound identical)
- Core word search: “Riverwalk”
- Secondary search: “Studios”
- Phonetic variations: Any spellings that sound the same
Step 2: The “Read Aloud” Test
This is my secret weapon for South Dakota: read your desired name and any similar results aloud. If they sound the same when spoken, South Dakota will consider them identical.
Step 3: Final Availability Check
Use the Business Name Availability tool to confirm your exact name before filing.
South Dakota’s Phonetic Distinguishability Rules
Understanding these rules is key to success in South Dakota:
What Doesn’t Create Distinguishability
1. Different Entity Designators “Coyote Coats LLC” conflicts with:
- “Coyote Coats Inc.”
- “Coyote Coats Corp.”
2. Different Spellings of Same-Sounding Words “Donut Basket LLC” conflicts with:
- “Doughnut Basket Inc.”
- “Donnutt Basskett Corp.” (phonetic spellings)
3. Spaces and Punctuation “Wheat Grass Juice LLC” conflicts with:
- “Wheatgrass Juice Corp.”
- “Wheat-grass-juice Inc.”
4. Capitalization “Wheat Grass Juice LLC” conflicts with:
- “WHEAT GRASS JUICE Corp.”
- “WhEaT GrAsS jUiCe Inc.”
5. Numbers vs. Spelled-Out Numbers “25 Fiddles LLC” conflicts with:
- “Twenty-Five Fiddles Inc.”
- “Twenty 5 Fiddles Corp.”
The South Dakota Sound Test
My proven method: Say both names aloud. If they sound identical when spoken at normal speed, South Dakota will consider them the same name.
Examples that sound identical:
- “Knight Services” vs. “Night Services”
- “Right Solutions” vs. “Write Solutions”
- “For You” vs. “4 U”
South Dakota LLC Naming Requirements
Required Designators
Your South Dakota LLC must end with one of these options:
- LLC
- L.L.C.
- Limited Liability Co.
- Limited Liability Company
- LC
- L.C.
- Ltd. Liability Co.
- Ltd. Liability Company
Reality check: 99% of my clients choose “LLC”—it’s clean and universally recognized.
Comma flexibility: Both “Grandpa Joe’s LLC” and “Grandpa Joe’s, LLC” are acceptable.
Forbidden Designators
Don’t try to sound like other entity types:
- Inc., Incorporated
- Corp., Corporation
- Ltd. (without “Liability Co.” or “Liability Company”)
These will get your filing rejected immediately.
Restricted Words
South Dakota prohibits words that could mislead the public:
Government-related terms:
- Can’t imply you’re part of government agencies
- Can’t suggest governmental authority
Professional designations:
- Attorney, lawyer (without proper licensing)
- Architect, engineer (without proper licensing)
- Accountant (in certain contexts)
Financial services:
- Bank-related terms without proper authorization
- Insurance-related terms without licensing
Understanding Entity Status for Name Availability
South Dakota clearly indicates which entity statuses make names available:
Names Available for Use ✅
- Dissolved
- Cancelled
- Terminated
- Withdrawn
- Revoked (Administrative)
Names NOT Available ❌
- Active
- Good Standing
- Delinquent
Strategic advantage: Unlike some states where “delinquent” status is unclear, South Dakota makes it crystal clear—delinquent businesses still hold rights to their names.
Professional Confirmation Strategy
When your phonetic analysis is unclear, contact South Dakota directly:
Phone: 605-773-4845
Hours: Monday-Friday, 8am-5pm Central Time
What they’ll help with:
- Clarifying phonetic similarity questions
- Explaining specific conflicts
- Guidance on borderline cases
Important note: They can’t guarantee availability, but they can help you understand their phonetic approach.
DBA/Fictitious Name Strategy: South Dakota’s Hidden Advantage
South Dakota has one of the most affordable DBA systems in the country.
Key details:
- Filing fee: $10 (cheapest in the nation!)
- Can file online
- Must pass the same distinguishability test
- No limit on number of fictitious names per LLC
Strategic advantage: With such low costs, you can afford multiple marketing names for different aspects of your business.
Common scenarios:
Marketing name different from legal name:
- Legal: “Rodeo Saddles and Spurs LLC”
- Marketing: “Rodeo Saddles” (DBA cost: $10)
Multiple brand strategy:
- Legal: “Dakota Services LLC”
- Brand 1: “Dakota Marketing” ($10 DBA)
- Brand 2: “Dakota Consulting” ($10 DBA)
Skip the Name Reservation Trap
South Dakota name reservations are unnecessary for most entrepreneurs.
Why I usually recommend skipping:
- Additional cost for something you probably don’t need
- The dual search system gives you high confidence
- $150 filing fee isn’t refunded, but rejection is rare with proper searching
When Your South Dakota Filing Gets Rejected
Don’t panic—South Dakota’s phonetic rules make rejections predictable and preventable.
What South Dakota does:
- Notifies you of the rejection
- Explains the phonetic similarity concern
- Allows you to refile with a different name
My recovery strategy:
- Apply the “sounds like” test to understand the conflict
- Choose a backup name that sounds clearly different
- Run the new name through both search tools
- Refile promptly to minimize delays
Advanced Strategies for South Dakota
Strategy 1: Phonetic Differentiation
Instead of “Night Solutions LLC,” try:
- “Evening Solutions LLC” (different sound)
- “Nighttime Solutions LLC” (additional syllables change the sound)
Strategy 2: Geographic Specification
“Black Hills Consulting LLC” becomes:
- “Rapid City Black Hills Consulting LLC”
- “Sioux Falls Consulting LLC”
Strategy 3: Industry Clarification
“Dakota Services LLC” becomes:
- “Dakota Marketing Services LLC”
- “Dakota Technical Services LLC”
Strategy 4: Multi-DBA Approach
Use South Dakota’s $10 DBA fees strategically:
- One legal LLC name
- Multiple $10 DBAs for different marketing approaches
My Recommended South Dakota Formation Timeline
Once you’ve confirmed name availability:
- File immediately: Don’t wait—South Dakota is efficient
- Pay the $150 filing fee: Very reasonable for the state
- Wait for processing: Usually 3-5 business days
- Consider DBAs: Plan your $10 marketing names
- Get your EIN: Apply for federal tax ID after approval
- Open business banking: Set up your LLC bank account
Business Name Brainstorming: My South Dakota-Tested Process
Phase 1: Phonetic Pre-Check
Before falling in love with any name, apply the “sounds like” test to common alternatives.
Phase 2: South Dakota Market Considerations
Consider the state’s business culture:
- Straightforward, honest naming works well
- Regional references resonate when appropriate
- Professional competence is valued
Phase 3: Multi-DBA Strategy Planning
With $10 DBAs, plan for multiple marketing names from the start.
Phase 4: Sound Differentiation Testing
Test every promising name by reading it aloud against existing businesses.
Formation Service Recommendations
For professional assistance: Based on extensive testing, Northwest Registered Agent provides excellent South Dakota LLC formation services with transparent pricing.
For comprehensive packages: LegalZoom offers full-service South Dakota formation, though at a higher price point.
DIY approach: South Dakota’s online system is user-friendly, and the $150 fee makes DIY very cost-effective.
Domain Name Coordination: Still Essential
Even with South Dakota’s affordable formation costs, don’t skip domain checking.
My recommendation: Check domain availability before committing to any business name.
The Bottom Line on South Dakota LLC Names
South Dakota’s phonetic approach to distinguishability might seem unusual, but it actually makes name approval more predictable than many states. Once you understand their “sounds like” philosophy, you can confidently navigate their system.
Key success principles:
- Master the phonetic distinguishability approach
- Use both search tools strategically
- Apply the “read aloud” test consistently
- Leverage the $10 DBA fees for marketing flexibility
- Don’t skip domain availability checks
Remember: South Dakota combines reasonable costs ($150 filing, $10 DBAs) with predictable rules. This makes it an excellent choice for entrepreneurs who want clarity and affordability.
The Mount Rushmore State carved out a unique approach to business names. Use their phonetic predictability and cost advantages to build a strong foundation for your business.
Jake Lawson is an LLC Formation Strategist and Tax Advisor who has successfully guided over 1,200 entrepreneurs through U.S. business formation. He specializes in helping both domestic and international entrepreneurs navigate state-specific requirements and provides unbiased formation service reviews at llciyo.com.