Starting a Business in South Dakota: Licenses, Registrations & Checklist
South Dakota start-up checklist
Formation
- Form your LLC or corporation with South Dakota Secretary of State. Official page
- A trade name (DBA) is registered with the state.
Tax registration
- Register for state taxes with South Dakota Department of Revenue. Official page
- 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.
- South Dakota has no wage withholding for state income tax.
Hiring
- Register for unemployment insurance with South Dakota Department of Labor & Regulation. Official page
- 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
Exceptions to watch
- 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.
Cities and counties in South Dakota
Choose a city to see its full list.