South Dakota Division of Insurance, Department of Labor and Regulation

South Dakota allows businesses to set up private captive insurance companies under state rules. Each captive has a $250,000 minimum capital requirement (except for trust captives, which require $100,000); a $2,000 nonrefundable application fee, paid to the state director; and an annual supervision fee of $5,000 or 0.08 percent on gross premiums, minus returned premiums. 

 The state allows single-parent, stand-alone, cell, and trust captives to be formed. Captives also can't join or contribute to state guaranty or insolvency funds. And the state doesn't require captive managers to register formally.

According to the latest publicly available figures, South Dakota has 12 single-parent captives, 14 stand-alone captives, and 20 cells.