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Swyft Filings is committed to providing accurate, reliable information to help you make informed decisions for your business. That's why our content is written and edited by professional editors, writers, and subject matter experts. Learn more about how Swyft Filings works, our editorial team and standards, what our customers think of us, and more on our trust page.
Are you starting a new business in the State of South Dakota? Whether they run a limited liability company or a sole proprietorship, most business owners must apply for a business license to stay in good standing. In this article, we’ll walk you through the different types of business licenses you may need and how to get them.
South Dakota Business License: Key Takeaways
A business license is a legal document your business must have to conduct specific business activities. South Dakota doesn’t have general business license requirements. Still, you may be required to obtain a federal, state, or local license.
You must maintain your business license through regular renewal filings.
You may need a special license if you run a home-based business, depending on the city you’re based in.
Ensuring you have the right business licenses and permits is crucial. Let us manage the complexities for you, so you can stay focused on what you do best — running your business.
What Is a Business License?
A business license is a legal document that allows you to conduct certain business activities. Different types of business licenses exist. Your small business may need permits from the federal government, the state, or local governments, such as your county or municipality.
What kinds of business licenses you need for your business depends on the nature of your activities, location, and business type (ex: limited liability company, DBA). You may need to apply for multiple business licenses.
For example, if your business operations involve the sale of alcoholic beverages, you will need to obtain a federal license, a state license in the State of South Dakota, and potentially some local licenses. As a business owner, you must know what licenses you need to obtain.
Many entrepreneurs believe registering a business entity with the South Dakota Secretary of State fulfills license requirements, but that’s not true. You still need to apply for licenses after business formation. Choosing a business name, appointing a registered agent, and registering with the IRS differs from obtaining a business license.
Get Your South Dakota Business License in 7 Steps
Figuring out what types of business licenses your small business needs can be daunting. It can be hard to differentiate between a state license, an occupational tax certificate, and other additional licenses you may be required to obtain. In the following sections, we’ll explain how to figure out what business licenses you need.
Step 1: Apply for South Dakota General Business Licenses
In some states, all businesses must obtain a business license to operate regardless of what they do. However, the State of South Dakota doesn’t have a general state license requirement.
That said, depending on the business activity you engage in, your small business may have to fulfill state and local licensing requirements. Ensure that your industry is regulated on the state level or that your county, city, or municipality requires a general or professional license.
Step 2: Apply for Federal Licenses for South Dakota Businesses
Some business industries are regulated at the federal level. If your new business is in a regulated industry, you will need to apply for a federal business license.
The federal government regulates the following industries:[1]
Agriculture, including import and transport of animals, animal products, biologics, biotechnology, and plants across state lines
Alcoholic beverages, including manufacture, wholesale, import, and retail
Aviation, including operating aircraft, transporting people or goods via air, and aircraft maintenance
Firearms, ammunition, and explosives, including manufacture, dealing, or import
Fish and wildlife, including import and export of wildlife and derivative products
Commercial fishing of any kind
Maritime transportation, including ocean transportation or facilitation of shipment of cargo by sea
Mining and drilling, including drilling for natural gas, oil, or other mineral resources
Nuclear energy, including commercial production of atomic energy, operating a fuel cycle facility, or distribution and disposal of nuclear materials
Radio and television broadcasting, including broadcasting information by radio, television, wire, satellite, or cable
Transportation and logistics, including operation of an oversized or overweight vehicle
Different government agencies are responsible for issuing different business licenses. For example, the Department of Agriculture administers the license authorizing your business to transport animals and plants across state lines. You can get more business information on the US Small Business Administration website.
Step 3: Search for South Dakota Permits and Licenses
Numerous licensing, reporting, and registration requirements exist at the state level in the State of South Dakota. Failure to obtain a state license can result in severe penalties for your business.
In South Dakota, the following state agencies regulate business licensing:[2]
South Dakota Animal Industry Board
Department of Agriculture and Natural Resources
Department of Game, Fish and Parks
Department of Health
South Dakota Department of Labor and Regulation
Department of Public Safety
South Dakota Department of Revenue
Department of Social Services
Department of Transportation
Each state agency has specific business license requirements for the industries under its jurisdiction. For example, the Animal Industry Board requires an auction market license if you sell livestock, a pet food processing license, and a meat plant license, among others.
The South Dakota Governor’s Office has compiled an extensive list of registration, licensing, and reporting requirements that you can find here.
Step 4: Search for Local County or City South Dakota Business Licenses
Cities, municipalities, and other local authorities may require additional licenses beyond federal and state requirements. Figuring out what types of permits are needed for businesses in your county or city can be time-consuming. Call your local tax office or use a third-party service like Swyft Filings.
For example, Sioux Falls requires a business license for:
Alcoholic beverages
Bowling centers
Livery
Sidewalk use
Motion picture theaters
Similarly, the city of Pierre requires obtaining a license for carnivals and circuses, tattoo art, pawn shops, and other establishments. Electrical, mechanical, plumbing, utility, and residential construction contractors also must obtain a professional license.
Other South Dakota cities may require business tax certificates, building permits, sales tax permits, and zoning ordinances. When in doubt, check with your local government office.
Step 5: Search for South Dakota Professional Licenses
Certain professions may require additional licenses regardless of your location in South Dakota. Lawyers, doctors, nurses, and chiropractors are just some professions that need to be appropriately licensed in the State of South Dakota.
Contact your South Dakota regulatory board to learn more about professional licensing requirements you may have. You may need to obtain a professional license at the local and state levels.
Step 6: Apply for a South Dakota Home-Based Business License
You may need to apply for a home-based license if you run your small business from home.
There is no state-wide home-based license requirement. It depends on the type of business you run and your business location.
Whether or not you need a home-based license depends on the city where you conduct business. For example, Sioux Falls requires a zoning permit for home occupations.[3] Occupations often requiring additional home-based licenses include child care and family child learning.
If you’re starting a new business and planning to run it from home, check with your local government office if you need to comply with any home-based license requirements.
Step 7: Maintain Your South Dakota Business License
Business owners must regularly renew their business licenses to stay in good standing with the State of South Dakota. In most cases, your business licenses will need to be renewed annually.
How much you can expect to spend on business license renewal depends on the nature of your business and its location. For example, all companies operating in Deadwood must have a city-issued business license. It costs $100 to get it for the first time and $20 to renew every year.[4]
If you don’t want to spend time obtaining and maintaining your business licenses, Swyft Filings can do it for you.
Apply for a South Dakota Business License Online
Researching and filing business license applications can take a toll on small business owners. Starting a new business requires a lot of energy; understandably, obtaining business licenses never makes it to the top of your agenda.
We find out what business licenses and permits you need to operate in South Dakota and quickly fill out the necessary paperwork so you can focus on what matters most — running your business.
Focus on Your Business: Dive into your passion while we handle the intricacies of acquiring the necessary local, state, and federal business licenses and permits.
Simplify Your Paperwork: Complete our straightforward questionnaire, and we’ll handle all the required filings for you, accurately and promptly.
Stay Compliant: Avoid the risks and severe repercussions of non-compliance. We’re here to ensure your business remains in good standing.
FAQs
How do I get a business license in South Dakota?
The first step is researching what types of business licenses you need. Depending on the nature of your business and its location, you may need to get federal, state, or local permits. The South Dakota State Government Website, sd.gov, can point you in the right direction.[5]
Does South Dakota require a general business license?
No, there is no general business license requirement in South Dakota. Depending on the nature of your business, you may still need to apply for other types of licenses, such as a state license or a local license.
Can you sell things in South Dakota without a license?
All retailers in South Dakota must have a sales tax license, whether they’re selling, renting, or leasing. Swyft Filings can help you navigate licensing requirements in South Dakota.
Do I need a special license for an online business in South Dakota?
It depends on the nature of your online business and its location. You may need to apply for a professional or home-based business license.
Can I collect sales tax in South Dakota without a license?
No. You need a sales, use, and service tax license to collect sales tax in South Dakota.
How much does a South Dakota business license cost?
It depends. Most South Dakota business licenses cost between $50 and $300, but exceptions exist.
What’s the penalty for not having a business license in South Dakota?
Not having proper business licenses can result in severe penalties for your business. You may be required to pay fines or even dissolve your business.
Bibliography
US Small Business Administration. “Apply for licenses and permits.” Accessed June 5, 2023.
South Dakota Governor’s Office of Economic Development. “Licensing and Registering Your Business.” Accessed June 5, 2023.
City of Sioux Falls. “Home Occupation.” Accessed June 5, 2023.
The Official Website of the City of Deadwood, South Dakota. “Deadwood Business Licenses.” Accessed June 5, 2023.
South Dakota State Government. “Government.” Accessed June 5, 2023.
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