Monday, May 24, 2010
South Dakota is quickly becoming the number one choice for trust providers and currently has more operating trust companies than Delaware and Nevada. Low barriers to entry are responsible for South Dakota’s increasing popularity with trust providers, including:
- Low Startup Capital Requirements. South Dakota requires trust companies to put up $200,000 while Delaware and Nevada require $1 million.
- Low Staffing Requirements. South Dakota does not have stringent requirements regarding number of full-time employees and trust officers like Delaware does.
- Quick Approval. Some trust companies have received approval in South Dakota in five weeks compared to one year in Delaware or two years for a federal trust charter.
For more information, see Scott Martin, South Dakota Sets Record for New Trust Companies, The Trust Advisor Blog, May 15, 2010.