Free Printable South Dakota Buy-Sell Agreement & Requirements

Plan for ownership transfer in a business

Sales Tax: 4.5%Notary: $10Witnesses: 1

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BUY-SELL AGREEMENT
State of South Dakota

This Buy-Sell Agreement is entered into on [DATE] between:

BUSINESS: [BUSINESS NAME]
Type: [  ] Corporation [  ] LLC [  ] Partnership
State: South Dakota (SD)

OWNERS:
Owner 1: [NAME] — Ownership: [PERCENTAGE]%
Owner 2: [NAME] — Ownership: [PERCENTAGE]%

1. TRIGGERING EVENTS:
   [  ] Death of an owner
   [  ] Disability of an owner
   [  ] Retirement
   [  ] Voluntary withdrawal
   [  ] Divorce
   [  ] Bankruptcy

2. VALUATION METHOD:
   [  ] Fixed price: $[AMOUNT] (reviewed annually)
   [  ] Formula-based: [DESCRIBE]
   [  ] Independent appraisal

3. PAYMENT TERMS:
   [  ] Lump sum within [DAYS] days
   [  ] Installments over [MONTHS] months at [RATE]% interest

4. FUNDING:
   [  ] Life insurance
   [  ] Company reserves
   [  ] Promissory note

5. RIGHT OF FIRST REFUSAL: Remaining owners have [DAYS] days to match any outside offer.

This agreement is governed by South Dakota law (SD Statutes).

OWNER 1: _____________________ DATE: _____
OWNER 2: _____________________ DATE: _____

FAQ: Buy-Sell Agreement in South Dakota

Is a Buy-Sell Agreement required in South Dakota?

Yes, in South Dakota, a Buy-Sell Agreement is required for most transactions of this type. Under South Dakota State Code, the document must include all parties' information, be signed, and witnessed by at least one individual. Failure to use a proper Buy-Sell Agreement may result in legal complications.

Does a Buy-Sell Agreement need to be notarized in South Dakota?

Notarization requirements in South Dakota (SD) vary by transaction type. Notary fees in the state typically range from $10. While not always mandatory, notarization adds an extra layer of legal protection and is recommended for high-value transactions.

What are the tax implications of a Buy-Sell Agreement in South Dakota?

South Dakota has a base sales tax rate of 4.5%. Depending on the type of transaction documented in your Buy-Sell Agreement, additional local taxes may apply. Consult with a South Dakota tax professional for specific guidance on your situation.

Where to File Your Buy-Sell Agreement in South Dakota

Visit your local County Clerk office to file or notarize your Buy-Sell Agreement.

South Dakota County Clerk

South Dakota Capital

Main Government Building, South Dakota

District County Clerk

South Dakota Metro Area

County Courthouse, SD

Buy-Sell Agreement Costs in South Dakota

Estimated fees and processing times

Fee TypeCostNotes
Notary Fee$5-$15 (if required)South Dakota standard rate: $10
Filing FeeVaries by stateState registration (if applicable)
Processing Time1-3 business daysTypical turnaround in South Dakota
Sales Tax4.5%South Dakota base rate (local taxes may apply)
Witness Requirement1 witnessSingle witness sufficient
Our TemplateFREEDownload instantly, no cost
Fees shown are South Dakota-specific estimates. Contact your local office for exact pricing.

South Dakota Buy-Sell Agreement Requirements

Review the following requirements to ensure your Buy-Sell Agreement is legally valid in South Dakota.

Notarization required
1 witness must sign
Vehicle identification number (VIN) required
Odometer disclosure mandatory
Buyer and seller signatures required
Purchase price must be stated
Date of sale required
Blue or black ink only
Electronic signatures accepted
County clerk filing required

South Dakota Notarization

While notarization may not be required in South Dakota, it is recommended. Fees range from $10.

Before You Sign

Review all information carefully. In South Dakota, a 4.5% sales tax may apply.

Legal Protection

Keep copies of all signed documents. South Dakota law requires all parties to receive copies of executed documents.

South Dakota Filing Deadlines

Check South Dakota deadlines for filing or recording this document with the appropriate county clerk's office.

SMJ
Reviewed & Fact-Checked

Sarah Mitchell, J.D.

Legal Document Specialist

Licensed Attorney, 15+ years experience

Specializes in contract law and legal document preparation

This Buy-Sell Agreement template for South Dakota has been reviewed for accuracy and legal compliance.

Last reviewed: March 2026

South Dakota Buy-Sell Agreement Legal Guide

This legally binding document in South Dakota serves as official proof of transaction and is recognized by courts and government agencies.

Under South Dakota State Code, residents of South Dakota must ensure this Buy-Sell Agreement complies with all state requirements. The current sales tax rate is 4.5%, and notarization costs between $10. One witness is required in SD.

This document offers comprehensive legal protection tailored specifically to South Dakota's unique statutory framework.

business successionownership transfertriggering eventbusiness valuationbuyout agreement
Every year, thousands of South Dakota residents need a Buy-Sell Agreement for personal or business purposes. Understanding SD regulations ensures your document is enforceable and protects your interests.

How to Complete This Form

Start by gathering all necessary information: party names, addresses, and relevant details specific to your transaction. South Dakota law under SD requires accuracy in every field. Once completed, have all parties review the document before signing. Depending on the transaction type, South Dakota may require notarization or witness signatures.

Legal Validity & Enforcement

Once properly executed, your Buy-Sell Agreement is legally binding in South Dakota and enforceable in SD courts. The document remains valid for the duration specified in its terms. South Dakota courts generally uphold properly executed documents, provided they comply with applicable SD statutes.

Pro Tips for South Dakota Residents

- **Use blue or black ink** when signing physical copies in South Dakota
- **Keep digital backups** of all signed documents
- **Check for local county requirements** that may apply in addition to SD state law
- **Don't backdate** — South Dakota courts view backdated documents unfavorably
- **Consult an attorney** for transactions exceeding $10,000 in value

What South Dakota Law Requires

South Dakota's statutes are clear: a valid Buy-Sell Agreement must identify all parties by full legal name, include the date of execution, and be signed in the presence of at least one witness where applicable. Failure to meet these requirements under SD law can render the document unenforceable.

Document Information

Document
Buy-Sell Agreement
State
South Dakota (SD)
Category
Business
Format
PDF / Word / Print
Cost
100% Free
Sales Tax
4.5%
Notary Fee
$10

South Dakota Legal Requirements

Governing Statute:

State Law

  • Consult with a licensed attorney for specific requirements

Legal Disclaimer

This template is for informational purposes only and does not constitute legal advice. Laws in South Dakota may change. Consult a licensed attorney for advice specific to your situation.