South Dakota 2026 Regular Session

South Dakota House Bill HB1096

Introduced

1/20/26

Refer

1/20/26

Report Pass

1/23/26

Engrossed

1/27/26

Refer

1/29/26

Report Pass

2/24/26

Enrolled

2/25/26

Passed

3/4/26

Caption

Allow for the direct creation of a limited liability limited partnership.

Impact

The passage of HB 1096 will alter existing legislation regarding business formation in South Dakota by specifically authorizing the direct creation of LLLPs from inception. This could boost the state's business climate by simplifying the administrative process for partnerships, which may encourage more individuals to enter into business ventures. Notably, the act also specifies that electronic transmission of documents is permissible, which caters to modern business practices and facilitates quicker processing of applications.

Summary

House Bill 1096 aims to streamline the process for creating limited liability limited partnerships (LLLPs) in South Dakota. The primary purpose of this bill is to allow an entity to be directly established as an LLLP by submitting a certificate to the Secretary of State, as opposed to only allowing transition from an existing limited partnership. This enhancement is intended to promote ease of business formation and attract potential entrepreneurs to engage in establishing partnerships within the state.

Sentiment

The sentiment surrounding HB 1096 appears to be generally positive, particularly among business advocates and legal professionals who see the value in simplifying partnership formation. Supporters view this bill as a progressive step that could enhance the attractiveness of South Dakota as a business-friendly environment. However, there may be some caution expressed regarding the potential for misuse or impact on regulatory oversight, which occasionally surfaces in discussions about easing business regulations.

Contention

One notable point of contention stems from the inherent balancing act between facilitating business formation and ensuring sufficient regulation and oversight in new business entities. While proponents believe in the benefits of such legislation, critics may raise concerns that easier access to creating LLLPs could lead to challenges in accountability or transparency for such entities. Overall, the bill’s provisions and its implications for business regulation underscore an ongoing dialogue about how best to support economic growth while safeguarding public interests.

Companion Bills

No companion bills found.

Previously Filed As

SD SB134

Provide limitations on liability and damages caused by a wildfire.

SD HB1245

Exempt from the state sales and use tax gross receipts for certain services to a partnership.

SD HB1024

Amend certain fees collected by the secretary of state.

SD HB1143

Require that the director of equalization adjust certain agricultural land values.

SD SB118

Direct the Department of Social Services to amend administrative rules allowing graduate students to be eligible for child care assistance.

SD HB1246

Require the director of equalization to adjust certain agricultural land values.

SD HB1095

Extend the area in which a director for an irrigation district may reside.

SD HB1194

Authorize the cooperation of counties for purposes of operating an office of county director of equalization.

SD HJR5005

Proposing and submitting to the voters at the next general election an amendment to the Constitution of the State of South Dakota, limiting the assessed value of real property and limiting real property taxes.

SD SJR502

Applying to the United States Congress for a convention of the states to propose amendments to the United States Constitution regarding the imposition of fiscal restraints on the federal government, further limiting the power and jurisdiction of the federal government, and limiting the terms of office for members of Congress and other federal officials.