South Dakota has a number of advantages for the nascent entrepreneur. For one, it has one of the friendliest tax climates for business in the country. Neither people nor corporations pay a state income tax, and the sale tax is only 4.5%. The low taxes help keep overall costs low for a growing business. Another positive for South Dakota is its promise of a high quality of life. Clean and quiet, and with a low crime rate, the state is an excellent place to raise a family.

Taking an extended break from work once and awhile is important for everyone, and thankfully, South Dakota offers some of the best hiking and fishing in the country. The presence of many state and national parks, including the Badlands and the Black Hills, with its iconic Mt. Rushmore National Memorial contribute to the state’s reputation as a top destination for outdoor

SDSioux FallsMinnehaha
SDRapid CityPennington

Only cities with over 50,000 inhabitants are reported in the results. Some data had to be interpolated to the county level and extrapolated to all the cities in the county. We concentrated on the following metrics to obtain our ranking: Cost of livingBest state for businessUnemploymentKauffman index, and Universities.


I'm an entrepreneur myself. When talking to others who want to start their own business, they often get wrapped up in the nitty gritty of paperwork and forming the company. They forget that what really matters is customers, sales, and profit. That's why I created How to Start an a simple resource and guide so you can spend less time on forming your company, and more time on building it.

My lawyers want me to remind you that I'm not a lawyer and that I'm completely unqualified to offer legal advice. This site is meant to serve as a reference for you on your journey. If you have questions or concerns, please contact a qualified lawyer (or accountant) to help you. Also, as a general rule, never take random legal advice on the internet.