The first 90 days of a new business move fast. You are setting up your space, chasing your first clients, and figuring out how to run the whole operation at once. Accounting usually gets pushed to the back of the list until something goes wrong. Getting the financial side right from the start costs far less than cleaning it up later. Here is a practical roadmap for new Sioux Falls business owners to get it done properly.

Daniel Foster at EDG CPA guides new owners every day. Managing money often feels heavy while chasing sales. Small steps in your first 90 days bring order. We built this roadmap to help you establish a clear financial path.

Days 1 to 30: Legal Registrations and Business Banking

The initial month focuses on legal structures tax numbers and bank account setups.

Register Your Entity with the State

Before sending invoices organize your Sioux Falls small business setup. If you choose a limited liability company structure, submit your South Dakota LLC registration on the Secretary of State website. The online state fee costs $150. State rules require LLCs to submit an annual report each year. That filing costs $50 and comes due on the first day of your anniversary month. Pick your structure carefully because tax rules vary. You can review our business startup consulting guidance to learn more.

Obtain an IRS EIN

Every company needs a federal identifier. Fill out the free IRS EIN application on the main IRS portal. This nine-digit number works like a social security code for a business. Banks require it. You also need it to hire staff and process government tax filings.

Apply for a South Dakota Sales Tax License

South Dakota collects tax on retail goods and specific services. Obtain your South Dakota sales tax license through the Department of Revenue site before collecting client funds.

Open a Dedicated Business Bank Account

Keep personal money separate from company cash. Bring your EIN, registration approval and photo ID to a bank. Open a dedicated business bank account right away. Using separate accounts keeps income clear. It also makes expense tracking simpler.

Days 31 to 60: Accounting Systems and Sales Tax Tracking

The second month focuses on tracking software accounting methods and local rules.

Choose Your Accounting Software and Chart of Accounts

Pick software to log your receipts and bills. During accounting software setup build your chart of accounts. A chart of accounts is a structured list of categories for your money. It groups items like rent supplies and sales. Setting categories early prevents errors later. Many owners connect their tools with our monthly bookkeeping services to keep records balanced.

Select Cash Basis vs. Accrual Basis Accounting

You must pick between cash basis vs. accrual basis accounting.

  • Cash basis: Records sales when cash enters the account. Records expenses when payments leave.
  • Accrual basis: Records sales when you send an invoice. Records expenses when bills arrive.

Most new small businesses prefer cash basis accounting because it is simpler to maintain and easier to understand.

Check City of Sioux Falls Local Licensing Rules

Sioux Falls does not require a single general business license for all companies. However certain industries including contractors, food businesses, transportation services, and businesses serving alcohol do require city-level permits and approvals. Requirements can also vary based on your specific business activity and location within the city. Always verify your licensing obligations directly with the City of Sioux Falls before opening your doors.

Days 61 to 90: Estimated Taxes, Payroll and Ongoing Support

The final month covers quarterly tax filings, payroll systems and ongoing reviews.

Plan for Quarterly Estimated Tax Obligations

South Dakota charges no state income tax. Still, self-employed owners face federal taxes. You must pay federal quarterly estimated tax obligations every three months. Missing these dates triggers penalties. Read our guide on quarterly estimated tax obligations to manage federal filing dates.

Set Up Payroll Processing for Employees

Hiring staff requires a formal pay system. You must register with state unemployment offices. You must also collect W-4 forms and deduct payroll taxes. We offer payroll processing solutions to handle tax withholdings and payments correctly.

Schedule Regular Reviews with a Sioux Falls CPA

Accounting setup is an active habit not a single task. Money management needs weekly care and monthly reviews. Working with a skilled Sioux Falls CPA like Daniel Foster at EDG CPA provides steady direction. We check your financial reports, spot errors early and prepare your books for professional tax services. If your business has employees, sells across state lines, or operates under an LLC or S-Corp structure, the accounting setup involves more moving parts than a simple checklist covers. That is where working directly with Daniel Foster at EDG CPA makes a real difference. We help new Sioux Falls business owners get their books, payroll, and tax obligations set up correctly from day one so there are no surprises when tax season arrives.

Build a Solid Financial Foundation with EDG CPA

Setting up your business accounting in 90 days brings total clarity. Early action prevents heavy stress when tax season arrives.

Ready to start your venture on firm ground? Daniel Foster at EDG CPA offer a free 30-minute introductory call. We help new owners evaluate entity choices, state rules and bookkeeping options.

Contact our Sioux Falls office today to reserve your call and build a strong financial path.