All operational businesses in South Dakota require a basic business license to keep their doors open and remain tax compliant. The cost of a business license in South Dakota can depend on the type of business, and additional permits required.
How much is a business license in South Dakota? Basic licenses in South Dakota cost $50 and up, though costs of registering an LLC and specific permits could be higher in South Dakota. The final cost of a South Dakota business license depends on the type of business being registered.
All businesses who want to operate a main office or branch in this state require a basic business license. Without one, they are trading illegally and could face serious fines or closure by South Dakota authorities until their permits have been updated.
Business License Registration in South Dakota
All companies, corporations and small businesses require a business license to pay tax in the state of South Dakota. Without one, a business operates outside the law and could face penalties from the state.
Registrations in most South Dakota locations start at $50. Some license registrations might cost more to register, and administration fees can apply.
LLCs and special permits can pay more for their final registration fees: This is important for applicants to check with their individual office or online licensing portal.
South Dakota license applications are immediate, although will take time to make it to approval. Physical applications can take longer than online business license applications.
Most permits and licenses in South Dakota remain valid for a year, but there are some exceptions to this that can expire sooner. Renewals must be made either before or on the stated deadline, or the business could face late fees or fines.
Unlike some states, South Dakota permits do not renew by themselves. Renewals can require additional administration fees that must be paid with the renewal application; check with each individual city office if you are not sure.
Additional licenses could be required for businesses like LLCs, food or liquor retailers and others. South Dakota has guidelines available to guide applicants on which registrations they will need.
The online business license application process in South Dakota can get a license processed in just a couple of days.
Physical applications might take up to 14 days, and special permits might take longer. Online applications are automatically faster.
All South Dakota businesses require a basic sales tax permit and business license to trade.
Without one, they face closure until their permits have been approved – and heavy fines are issued against noncompliant businesses.
Expired licenses are treated the same as trading without a license in South Dakota: fines and charges apply to businesses who are caught without the legally required paperwork.
A business license is one of the first documents a legal South Dakota business will need, even when other permits are required.
Types of Business Licenses
|An LLC or Company||A Limited Liability Corporation is a specific type of business that has to be registered separately in South Dakota, and applications might cost more than a basic business license.|
|A General Operating License||A general operating license is the name for a basic business license, required for all businesses who want to trade in South Dakota.|
|A Food License||Food licenses are a specific type of business license that’s only necessary for South Dakota businesses who buy, sell or trade in food-related items.|
|A Nonprofit||A nonprofit license has to be registered for separate from a regular business license in South Dakota.|
South Dakota Business Facts
• All businesses in the state of South Dakota must register for a basic sales license to trade and pay their tax.
• South Dakota is ranked as one of the top states to start a business.
• Small businesses account for at least 90% of total business in South Dakota.
When does a business license in South Dakota expire?
Most South Dakota business licenses last for approximately 1 year after their approval date. Renewal is not automatic like some states, but depends on the application to be manually renewed. Application costs might apply, and this can vary based on your location.
How do I register for a nonprofit license in South Dakota?
Nonprofit licenses are considered a separate type of industry license in South Dakota. Not-for-profit companies and charities should register for a nonprofit license at the same office or website portal, but with a different form.
Where can I apply for a business license in South Dakota?
Business licenses in South Dakota can be applied for through the relevant web portal, or in person through a physical application. Online applications process faster, and can be found at the main South Dakota state website. www.South Dakota.gov
What if my business license is delayed?
Business licenses can be delayed, especially if the application was made during a busy time of the year or through a physical office. A business license that takes more than 2 to 4 weeks should be followed up with the relevant department.
South Dakota Business Registration
The law requires all businesses in South Dakota to register for their business license before they are allowed to operate an office or branch in this state.
The cost of South Dakota business licenses can be different, ant it depends on the type of license that is being registered for. Basic business licenses are cheaper, while companies like an LLC and special permits might cost more.
The online application process makes applying for most South Dakota permits and licenses easy: it will only take a couple of minutes to register, and online licenses get approved in a few days.
Businesses without an updated license could face closure from the state, and additional fines for continual operation without a license.
Here are the business license costs in other states: