Here's what you need in South Dakota
Official state business portal: Start Your Business in South Dakota. The Governor's Office of Economic Development has a business start up packet, a new business checklist and a guide to licensing and registering your business.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| General state business licenseSouth Dakota does not appear to have a general state business license, but no official page saying so was found. Some activities need a state license, and cities or counties may need their own. | South Dakota Governor's Office of Economic Development | Not yet verifiedCheck with the agency | Source | Nov 7, 2026 |
| Form an LLCArticles of Organization. To form an LLC in South Dakota, file Articles of Organization with the Secretary of State. Filing online costs less than filing on paper. | South Dakota Secretary of State | $150 online, $165 on paper | Applyat sosenterprise.sd.govSource | Nov 7, 2026 |
| Business name (DBA)DBA (Fictitious) Business Name Registration. Register a DBA (fictitious business name) with the South Dakota Secretary of State. Renewing or changing it costs the same small fee, and cancelling is free. | South Dakota Secretary of State | $10 filing fee | Source | Nov 7, 2026 |
| Sales tax permitSales Tax License. Any retailer selling, renting or leasing products or services in South Dakota needs a sales tax license from the Department of Revenue. Apply online and you get a license card once approved. | South Dakota Department of Revenue | Free | Applyat apps.sd.govSource | Nov 7, 2026 |
| Unemployment insurance (once you hire)Reemployment Assistance Tax Employer Registration. All new businesses must register with the Reemployment Assistance Tax Unit (formerly unemployment insurance). Register online or with Form 1. | South Dakota Department of Labor and Regulation | You pay tax on wages | Applyat apps.sd.govSource | Nov 7, 2026 |
| Federal tax ID (EIN)Employer Identification Number (EIN). You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. | Internal Revenue Service (IRS) | Free | Applyat irs.govSource | Nov 7, 2026 |
Costs after you start
What an LLC in South Dakota pays or files after it is formed.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Annual ReportEvery South Dakota LLC files an annual report with the Secretary of State each year. Filing online costs less than filing on paper, and a late fee applies to overdue reports. | South Dakota Secretary of State | $55 a year online, $70 on paper | Applyat sosenterprise.sd.govSource | Nov 7, 2026 |
Licenses by type of business
State level licenses. Your city or county may add its own permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Hair salon, barber shop or nail salonSalon or Booth License. A new cosmetology, esthetics or nail salon first gets a 90 day permit. After it passes inspection, the license renews every year. | South Dakota Cosmetology Commission | $75 for the first 90 day permit | Source | Nov 7, 2026 |
| Child care in your homeRegistered Family Day Care. A family day care home can care for up to 12 children. Registration is required if you are paid with public funds; otherwise it is your choice. | South Dakota Department of Social Services, Office of Licensing and Accreditation | Fee not published.Ask the agency | Source | Nov 7, 2026 |
| Selling alcohol (bar or restaurant)Retail On-Sale Liquor License or Malt Beverage and Wine License. Bars and restaurants need an alcohol license. You apply through your city finance officer, or the county auditor outside city limits, who can tell you which licenses are available and the cost. | South Dakota Department of Revenue, with your city or county | Depends on the license type | Source | Nov 7, 2026 |
| General contractorContractor's Excise Tax License. Anyone who contracts for construction work in South Dakota must have a contractor's excise tax license from the Department of Revenue before starting work. | South Dakota Department of Revenue | Free | Applyat apps.sd.govSource | Nov 7, 2026 |
| Selling homemade food (cottage food)Home Processed Foods (Cottage Food Laws). South Dakota cottage laws let you sell certain home made foods without a food service license, from your home or a farmers market. The exemption covers only some foods. | South Dakota Department of Health | Not needed | Source | Nov 7, 2026 |
What is different in South Dakota
- At $150, the LLC filing fee is among the highest: only 9 of 49 verified states charge more.
- Business names (DBAs) are filed with the state, at the South Dakota Secretary of State. At $10, the state DBA fee is among the lowest: only 3 of 33 verified states charge less.
- At $75, the salon or shop license fee is among the lowest: only 8 of 36 verified states charge less.
- Annual Report: $55 a year online, $70 on paper. Every South Dakota LLC files an annual report with the Secretary of State each year. Filing online costs less than filing on paper, and a late fee applies to overdue reports.
Steps to start a business in South Dakota
Pick a structure and register it
Sole owners can start under their own name. To form an LLC, file the Articles of Organization with the South Dakota Secretary of State ($150).
Get a free EIN
Apply on irs.gov. You need it to hire, and banks usually ask for it. Never pay a website for an EIN.
Register your business name
If you trade under a name that is not your legal name, file a DBA with the South Dakota Secretary of State.
Register for sales tax
If you sell taxable goods or services, get your permit from the South Dakota Department of Revenue before your first sale.
Get a state license for your type of business
Salons, child care, alcohol, building work and home food each have their own state rules. See the table above.
Check city and county permits
Ask about a local business license, zoning, health and building permits before you sign a lease.
Register as an employer when you hire
Open a state unemployment insurance tax account with the South Dakota Department of Labor and Regulation.
City and county permits
Cities and countys in South Dakota can require their own business license, zoning approval, health permit or building permit. Rules change from place to place, so ask your city hall and county clerk before you sign a lease. Home businesses often need a home occupation permit.
Questions about business licenses in South Dakota
Do I need a business license in South Dakota?
We have not yet verified this on an official page. Check with the South Dakota Governor's Office of Economic Development.
How much is an LLC in South Dakota?
The South Dakota Secretary of State charges $150 online, $165 on paper to file the Articles of Organization. To form an LLC in South Dakota, file Articles of Organization with the Secretary of State. Filing online costs less than filing on paper.
How much does an LLC cost per year in South Dakota?
Annual Report: $55 a year online, $70 on paper. Every South Dakota LLC files an annual report with the Secretary of State each year. Filing online costs less than filing on paper, and a late fee applies to overdue reports.
Does an LLC need a business license in South Dakota?
Yes, if your type of business or your location requires one. Forming an LLC only registers your company with the state; it is not a license. An LLC in South Dakota still needs any state license for its type of business and any local business license from its city or county.
Do I need a sales tax permit in South Dakota?
Yes, if you sell taxable goods or services. Any retailer selling, renting or leasing products or services in South Dakota needs a sales tax license from the Department of Revenue. Apply online and you get a license card once approved. Official fee: Free.
How much is a DBA in South Dakota?
Register a DBA (fictitious business name) with the South Dakota Secretary of State. Renewing or changing it costs the same small fee, and cancelling is free. Official fee: $10 filing fee.
Can I sell homemade food from home in South Dakota?
South Dakota cottage laws let you sell certain home made foods without a food service license, from your home or a farmers market. The exemption covers only some foods.
Do contractors need a state license in South Dakota?
Anyone who contracts for construction work in South Dakota must have a contractor's excise tax license from the Department of Revenue before starting work. Official fee: Free.
Do I need an EIN?
You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. It is free: never pay a website for an EIN.
Sources
Every fact on this page comes from an official government page, checked on the date shown. Facts we could not confirm are marked Not yet verified and show no number. How we check.
- General state business license South Dakota Governor's Office of Economic Development Not yet verified Checked Nov 7, 2026
- Form an LLC South Dakota Secretary of State Checked Nov 7, 2026
- Sales tax permit South Dakota Department of Revenue Checked Nov 7, 2026
- Unemployment insurance (once you hire) South Dakota Department of Labor and Regulation Checked Nov 7, 2026
- Hair salon, barber shop or nail salon South Dakota Cosmetology Commission Checked Nov 7, 2026
- Child care in your home South Dakota Department of Social Services, Office of Licensing and Accreditation Checked Nov 7, 2026
- Selling alcohol (bar or restaurant) South Dakota Department of Revenue, with your city or county Checked Nov 7, 2026
- Selling homemade food (cottage food) South Dakota Department of Health Checked Nov 7, 2026
- Federal tax ID (EIN) Internal Revenue Service (IRS) Checked Nov 7, 2026