Starting a Business in South Dakota: Licenses, Registrations & Checklist

South Dakota start-up checklist

Form your LLC or corporation with South Dakota Secretary of State. Official page
A trade name (DBA) is registered with the state.

Register for state taxes with South Dakota Department of Revenue. Official page
Business-level tax: No corporate or individual income tax (financial institution franchise tax only).
Sales tax: get a South Dakota sales tax license from South Dakota Department of Revenue before you sell taxable goods. Official page
Remote sellers must register once sales into the state pass $100,000 a year.
Local sales taxes are collected through the state return.
South Dakota has no wage withholding for state income tax.

Register for unemployment insurance with South Dakota Department of Labor & Regulation. The 2026 taxable wage base is $15,000 per employee; experience-rated rates run from 0% to 8.52%. Official page
New employers start at 1.2%.
Workers' compensation through South Dakota Division of Labor and Management and private insurers. Required when: Optional (not required by state law; uninsured employers can be sued in tort)
Post the required labor notices at your workplace. Official page

(LLCs, corporations and nonprofits): every year around the formation anniversary; fee $55 online, $70 on paper.
State tax returns and payments (sales, withholding, unemployment) follow the schedule your agency assigns when you register.

Business filings and annual reports: South Dakota Secretary of State. Official page
Taxes: South Dakota Department of Revenue. Official page
Unemployment insurance and labor rules: South Dakota Department of Labor & Regulation. Official page
Workers' compensation: South Dakota Division of Labor and Management.
Real estate licensing: South Dakota Real Estate Commission.
Alcohol licensing: South Dakota Department of Revenue (with local licensing).
Child care licensing: South Dakota Department of Social Services.
Health facility licensing: South Dakota Department of Health.

City business license (City finance office): Some South Dakota cities require licenses for specific businesses.
Cannabis: medical licensing only, regulated by South Dakota Department of Health, Medical Cannabis Program.

Checked against official sources on October 13, 2026. Rules change; confirm each item with its agency.

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