South Dakota Business License: Who Needs One & How to Apply (2025)

What Is a Business License in South Dakota?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately. 

So, if there isn’t a “general business license” in South Dakota, what exactly is there?

Well, South Dakota — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do. 

For example:

• A restaurant in Sioux Falls will need a health permit from the South Dakota Department of Health.
• A hair salon in Rapid City will need professional licenses from the South Dakota Cosmetology Commission.
• A retail store selling taxable goods will need a Sales Tax License from the South Dakota Department of Revenue.
• A business that wants to install signage in Aberdeen will need a sign permit from the City of Aberdeen.

It all depends on what you do, and where you’re located. There is no “business license” that you will need to obtain just to operate no matter what, and while most businesses will need some form of business license to operate, this will not be the case for everyone. 

Do I Need a South Dakota Business License?

Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

South Dakota Business Licensing at a Glance

Jurisdiction	Business Licenses	Who Needs It & Where to Apply
Local	Health Permits, Zoning Permits, Occupancy Certificates, Industry-Specific Permits, etc.	Varies by location Contact your city clerk’s office or city finance office to determine local requirements.
State	Sales Tax License	Businesses selling taxable goods or services, or purchasing items for resale. Apply through the South Dakota Department of Revenue.
	Professional Licenses	Required for professions (e.g., cosmetologists, accountants, contractors, real estate agents, etc). Apply via the relevant board under the Department of Labor and Regulation.
	Industry-Specific State Licenses	Businesses in regulated industries (e.g., food, liquor, environmental, vehicle dealers)  Apply through the relevant South Dakota agency.
Federal	Industry-Specific Licenses	Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney.

How to Get a Business License in South Dakota

The process of obtaining a business license in South Dakota will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an EIN

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

• Personal liability protection
• Improved legitimacy 
• Larger access to loans and corporate finance

Note: You should obtain an Employer Identification Number (EIN) after forming your LLC. You can have a look at our How to Get an EIN overview for more information. 

2. Apply for the Right Business License in South Dakota

This step will depend on the business license in question.

South Dakota Local Business Licenses

Many South Dakota cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

• Zoning Permits: You may need this to ensure that your business’s location is zoned appropriately and is compliant with local laws (e.g., if you were based in Rapid City, you would check with the City of Rapid City’s Building Services Department).
• Sign Permits: These can be required before installing business signage (e.g., if you were installing signage in Aberdeen, you would contact the City of Aberdeen’s Building Services Department).
• Certificate of Occupancy Permits: Required for most businesses before they can legally occupy a building or space. This verifies that the structure meets building codes and is safe for the intended use (e.g., if your business is in Brookings, you would check with the City of Brookings Building Department).
• Home Occupation Permits: Required in many South Dakota cities for businesses operating out of a residence. These permits ensure home-based businesses comply with residential zoning requirements (e.g., if operating from home in Sioux Falls, check with the City of Sioux Falls Zoning Department).

To find your local county or city’s official contact information and licensing requirements, you can visit the South Dakota Municipal League or the South Dakota Association of County Officials. 

South Dakota State Business Licenses

Below we’ve included the most common business licenses that are required on a state level. 

South Dakota Sales Tax License

You can register for a South Dakota sales tax license online for free through the SD Department of Revenue’s Business Tax Application portal.

Apply Online With the South Dakota Department of Revenue

Apply Online

Fee: None

Keep in mind that you’ll need a NAICS code in order to apply. For more information on this, you can have a look at our South Dakota Sales Tax guide.

Tip: Your business does not need to pay sales and use tax when purchasing goods for resale. Have a look at the South Dakota’s Certificate of Exemption for more information.

South Dakota Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

• South Dakota Board of Medical and Osteopathic Examiners: Licenses physicians (MD and DO), athletic trainers, genetic counselors, and oversees emergency medical services personnel.
• South Dakota Board of Nursing: Regulates registered nurses, licensed practical nurses, advanced practice registered nurses, and certified nurse practitioners.
• South Dakota Board of Pharmacy: Oversees pharmacists, pharmacy technicians, and pharmaceutical establishments throughout the state.
• South Dakota Real Estate Commission: Licenses real estate brokers, salespersons, auctioneers, property managers, residential rental agents, timeshare agents, and home inspectors.
• South Dakota Board of Technical Professions: Regulates architects, engineers, land surveyors, landscape architects, and petroleum release services professionals.
• South Dakota Cosmetology Commission: Licenses cosmetologists, estheticians, nail technicians, and cosmetology instructors.
• South Dakota Board of Accountancy: Oversees certified public accountants (CPAs) and public accounting firms.

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides. 

Industry-Specific State Licenses

Some South Dakota businesses require additional licenses based on the particular industry they operate in. These licenses are issued by specific state agencies and must be obtained before the business can legally operate.

Here are some common examples of industry-specific state licenses in South Dakota:

• Food Service License: Required for restaurants, food trucks, and food establishments. Regulated by the South Dakota Department of Health. Includes requirements for facility plans, inspections, and food safety certification.
• Liquor License: Required for businesses that manufacture, distribute, or sell alcoholic beverages. Regulated by the South Dakota Department of Revenue. Different licenses are available for on-sale, off-sale, and wholesale operations, with fees varying by license type and local jurisdiction.
• Motor Vehicle Dealer License: Required for businesses selling more than 5 vehicles in a 12-month period. Regulated by the South Dakota Department of Revenue Motor Vehicle Division. Dealers must also obtain a surety bond and liability insurance.
• Child Care License: Required for facilities caring for 13 or more children. Regulated by the South Dakota Department of Social Services. Different licenses apply for day care centers (21+ children) and group family day care homes (13-20 children).

South Dakota Environmental Permits

If your business activities could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the South Dakota Department of Agriculture and Natural Resources.

Examples of industries regulated here include:

• Underground/Aboveground Storage Tank Registration: Required for facilities with tanks containing petroleum products or other regulated substances. Tanks with 10% or more of their capacity below ground are regulated as USTs.
• Air Quality Permits: Required for facilities that emit air pollutants, including rock crushers, asphalt plants, concrete plants, and manufacturing facilities. Major sources may need Title V operating permits.
• Stormwater Permits: Required for construction activities disturbing one or more acres and industrial facilities with stormwater runoff. Includes NPDES permits for discharges to surface waters.
• Concentrated Animal Feeding Operation Permits: Required for livestock facilities meeting certain size thresholds. Covers feedlots, dairies, and other animal feeding operations that may impact water quality.
• Wastewater Discharge Permits: Required for facilities discharging wastewater to surface waters or groundwater. Includes NPDES permits for publicly owned treatment works and industrial dischargers.
• Water Rights Permits: Required for commercial, industrial, or irrigation uses of surface water or groundwater exceeding domestic use limits (25,920 gallons per day or 25 gallons per minute).
• Mining Permits: Required for large-scale mining operations, including exploration permits and reclamation plans. Special requirements apply to operations near special or unique lands.
• Solid Waste Facility Permits: Required for landfills, transfer stations, composting facilities, and other solid waste management operations.
• Septic System Installation Permits: Required for on-site wastewater treatment systems. Plans must be submitted to DANR for approval before installation.
• Hazardous Waste Generator ID: Required for facilities that generate, store, or dispose of hazardous waste. Different requirements apply based on generator status (small, large, or very small quantity).

Federal Business Licenses for South Dakota LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate. 

A full list of industries regulated at a federal level can be found below:

• Agriculture: Overseen by the U.S. Department of Agriculture
• Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
• Aviation: Overseen by the Federal Aviation Administration.
• Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
• Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
• Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
• Maritime Transportation: Overseen by the Federal Maritime Commission.
• Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
• Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
• Transportation and Logistics: Overseen by the U.S. Department of Transportation

South Dakota Business License Renewal

Depending on your business license, you may need to renew it periodically — usually within one or two years. 

This is not required for a sales tax permit, but is required for practically all professional licenses. 

Several of the local permits will also need to be renewed annually; this includes health department permits, signage permits, and fire department permits, which generally all need to be renewed annually.

Having said that, this will depend on both your location and the license in question.

South Dakota Business License FAQs

Quick Resources

• South Dakota Department of Revenue
• South Dakota Secretary of State
• Department of Labor and Regulation
• South Dakota Municipal League
• Department of Agriculture and Natural Resources