Starting a business in South Dakota is exciting, but before you open your doors, you’ll need to make sure your company has the right licenses and permits.

In this guide, we’ll break down exactly what business licenses are required in South Dakota, how much they cost, and where to get them. You’ll also learn how to renew them and what happens if you skip this step.

Do you need a business license in South Dakota?

South Dakota doesn’t require a statewide general South Dakota business license. That means there’s no single license you need to operate a business at the state level.

However, depending on what you do and where you operate, you may still need:

• A sales tax license (if you sell taxable goods or services)
• Local business licenses from your city or county
• Industry-specific or professional licenses
• Federal permits, in rare cases

So, while the state keeps things simple, you still need to check your local and professional requirements before starting operations.

How much does a South Dakota business license cost?

Your business license-related costs will vary depend on your business type and location.

• There’s no fee for a South Dakota sales tax license.
• Local or county business licenses typically range from $50 to $500.
• Professional or trade licenses may cost more and often require annual renewal.

Here’s a quick look at common South Dakota licenses and their costs:

License Type	Location / Issuer	Cost
State sales tax license	South Dakota Department of Revenue	$0
Construction supervisor license	Sioux Falls	$85
State plumbing apprentice license	State of South Dakota	$20
Family day care license	Sioux Falls + state registration	$125 + $25 fee

Types of business licenses in South Dakota

1. City or municipal business licenses

Many cities, like Rapid City and Sioux Falls, require you to register before operating locally. Check with your city clerk’s office to see which licenses apply to your type of business.

2. County business licenses

Some counties have their own licensing rules. Contact the county government where you plan to operate for specific requirements.

3. State-level professional licenses

If you’re in a regulated field (like plumbing, construction, accounting, or law), you’ll need to get licensed through the state agency that oversees your profession.

4. Federal licenses

Certain industries such as alcohol sales, transportation, or broadcasting require federal approval. You can find these requirements through the relevant federal agency.

Industry examples: what licenses cost and how they work

Off-Premises Liquor License

If you sell alcohol for consumption off-site, you’ll need this license.

• Cost: $300
• Issued by: Local municipality
• Renewal: Annually by July 1 (late renewals face a 50% penalty)

Vehicle dealer license

Covers dealerships for cars, boats, trailers, snowmobiles, and more.

• Cost: $150–$300
• Duration: 5 years
• Renewal: $100–$175, with notices sent 3 months before expiration

How to get a business license in South Dakota

Here’s a quick step-by-step on how to get your business license and permits:

1. Check state requirements — Visit the South Dakota Department of Labor & Regulation for any profession-specific licensing.
2. Apply for your sales tax license — If you sell goods or services, register through the Department of Revenue.
3. Check local regulations — Visit your city or county government website for permits and local business registration.
4. Submit required forms and fees — Some licenses can be applied for online, while others may require paper forms.
5. Renew as needed — Mark your renewal dates to stay compliant.

Renewing your South Dakota business license

License renewal varies depending on your license type:

• Liquor licenses: Renew annually by July 1 (up to $500 renewal fee).
• Vehicle dealer licenses: Renew every 5 years; fees range from $100–$175.
• Local licenses: Most renew yearly — check with your city or county office.

What happens if you don’t get a license?

Operating without the proper licenses can lead to:

• Fines or penalties
• Orders to cease operations
• Potential criminal charges

Even small businesses or home-based businesses must follow local and tax licensing rules.

Get help starting and licensing your business in South Dakota

Getting your licenses and permits is one of the final steps before launching your business, and we’re here to make the it simple. Once you’ve handled your local and state requirements, you can operate with confidence knowing your business is compliant and ready to grow.

And remember, you don’t have to do it all alone. Tailor Brands can help you every step of the way — from forming your LLC and getting your EIN to securing the business licenses and permits your company needs to operate legally.

And remember, you don’t have to do it all alone! From forming your LLC to getting your EIN and keeping up with annual reports, Tailor Brands helps you handle the setup so you can focus on building your dream.

With our all-in-one platform, you can take care of your South Dakota formation, registration, and licensing in one place.

Get your business license with Tailor Brands and make your business official today.

Get help starting your business in South Dakota

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