South Dakota is a modern day blend of Old West attractions and new age industry and research. Our state’s economy is driven by the traditional industries of agriculture, financial services and manufacturing, but gaining momentum are the professional and technical services industries, knowledge-based industries such as biotech and nanotech, and business processes.
South Dakota has the best business climate for entrepreneurs with:
No Corporate Income Tax
No Personal Income Tax
No Personal Property Tax
No Business Inventory Tax
No Inheritance Tax
Detailed Tax Comparison 
South Dakota is committed to building its R&D infrastructure and helping small business flourish in the bio-tech industry.
- South Dakota ranked 1st nationally for the increase in Academic R&D Expenditures from 2001 – 2005 with a 106.2 percent increase.
- South Dakota ranked 1st nationally for the increase in NIH Awards from 2001 – 2005 with a 132.3 percent increase.
- South Dakota ranked 2nd nationally for the increase in Industry-Financed R&D Expenditures at colleges and universities from 2001 – 2005 with a 94.3 percent increase.
- South Dakota ranked 6th nationally for Federal R&D Obligations to colleges and universities from 2000 – 2004 with a 53.8 percent increase.
In South Dakota, you keep what you earn, and government works to eliminate red tape and roadblocks. In 2007 we’ve been recognized for:
| Rank |
Title |
Source |
| Best |
Entrepreneurial Friendliness |
Small Business Survival Foundation |
| 2nd Best |
Pro-Business Climate Ranking |
Business Facilities Magazine |
| 2nd Best |
State Tax Business Climate |
Tax Foundation |
| 4th Best |
Fair & Predictable Tax Environment |
CFO Magazine |
| 7th Best |
Corporate Business Climate |
Pollina Corporate Real Estate |
| 7th Best |
Most Digitally Advanced State |
Center for Digital Government |
| 7th Best |
Biotechnology Leadership |
Business Facilities Magazine |
More Business Rankings:
