Do you own a business operating in the state of South Dakota? If so, you may need to acquire licenses and permits to ensure that your company operates in a compliant fashion.
But how do you determine which permits and licenses you need (if any), and where do you acquire them? In this guide to South Dakota business licenses and permits, we’ll answer all the tough questions about this process.
Are There Federal Licenses That My Business Needs?
First off, let’s discuss the matter of federal licenses and permits. There are many business activities that are regulated by various federal agencies, from agriculture to transportation and logistics. We recommend taking a look at the U.S. Small Business Administration’s guide to federal licenses and permits to make sure you’ve got your bases covered.
In addition, most businesses should acquire a federal tax ID number, also known as an EIN (employer identification number). This is essentially a social security number for your business, and it enables you to hire employees, pay business taxes, open business bank accounts, and more. You can acquire an EIN from the IRS for free.
What State-Level Licenses and Permits Apply in South Dakota?
South Dakota does not require businesses to obtain a general, statewide license, though all commercial entities must register with the state prior to commencing business.
While every business is not required to have a license or permit, there are dozens of licensing requirements for specific activities or industries. Thankfully, the state provides a list of all industry-specific licensing requirements. You can also learn more about professional or occupational licensing on the South Dakota Department of Labor & Regulation website.
Additionally, some business activities that affect air, soil, or water quality require environmental permitting. Consult the One Stop Permitting page on the South Dakota Department of Environment & Natural Resources website for more information.
Which Tax Registrations are Required for South Dakota Businesses?
In addition to occupational licenses and permits, there are a number of state-level tax registrations, which are based on the industry you operate in and which business structure your company uses.
Unlike most states, South Dakota does not have a state or corporate income tax. However, many businesses will still need to apply for a Tax License and pay sales and use tax.
South Dakota has a variety of special tax requirements for specific industries like motor vehicle sales, gaming, and education. Fortunately, you can learn more about the state’s industry-specific tax regulations on the South Dakota Department of Revenue website.
Are There Local Licenses, Permits, or Registrations in South Dakota?
The answer to this question obviously depends on where in South Dakota you’re operating your business, but there are indeed quite a few licenses, permits, and tax registrations required by South Dakota localities.
Many locations in South Dakota have their own licensing requirements. These are managed at the local level, so you will need to contact your city, town, or county clerk’s office for more information.
If we were to break down the exact rules and regulations regarding permitting in every locality in the state of South Dakota, this article would become excessively lengthy. With that in mind, we’ll simply say that every business owner should check with their local government to determine whether there are licenses, permits, or tax registrations required to operate in compliant fashion.
Can I Hire Someone to Research Licenses and Permits for My Business?
If this process sounds like a bit of a hassle, that’s because it certainly can be. If you would rather hire a reputable business services provider to handle this for you, that is always an option.
Companies like Incfile can research the necessary licenses and permits for your company on the federal, state, county, and municipal levels. They will then send you the applications you need to acquire these permits and licenses, meaning all you need to do is fill them out and mail them in.
There is no one-size-fits-all answer for the question of which licenses and permits your business might require to operate in the state of South Dakota. Instead, it’s important that you know how to access the resources to determine which permits your company needs to operate in a compliant fashion.
We hope this article helped you to do just that, and we wish you good fortune in your business future!