What should I know about business licenses in South Dakota?
A sign of South Dakota's growing business activity is the expansion of Win Chill LLC, a $40 million distribution center and warehouse constructed in 2017. Although it is a huge facility (over 200,000 square feet), developers say that it's not nearly big enough for the demand.
In fact, the responses from local business owners who are clamoring for more space to store their products "has been overwhelming," according to one of Win Chill's primary developers. Demand for medical services, retail, hotels, housing, and many other products and services, is the driving force behind South Dakota's record high economy.
Although the Coyote State does not issue general business licenses, entrepreneurs will need to apply for a South Dakota tax license provided by the state's Department of Revenue and Regulations. Depending on the type of business you wish to establish in SD, you may need to obtain specialty business licenses and permits through local city or county governments. City zoning departments may also have laws regarding the permits necessary to operate your business within county or city limits.
Common South Dakota business license questions
Trying to start your own business may seem like taking on a goal the size of Mount Rushmore. But this is South Dakota - you were made for monumental adventures! If you’re opening a business here, you’re bound to have a few questions. And we have just the answers to help start your business in South Dakota.
There is not a general, statewide business license for South Dakota. Even so, there are particular businesses that may need to get specific licenses or permits to operate. Most cities or counties may also require their own local licenses. You should check your individual business to see if additional permits are required.
Different types of businesses may require different licenses, so costs may vary depending on your industry. A license for an auto dealer in South Dakota starts at$200, plus a $40 salesperson license fee. If you decide to open a plant nursery in South Dakota then you will need a nursery license for $40. Make sure you double-check the licenses your business needs and confirm if it requires any other permits.
Before you begin to operate your business, you must get a State of South Dakota Tax License issued by the Department of Revenue and Regulations. There are also other specialty licensing, tax and permit requirements that may also be needed.
Don’t let this deter you. Avalara can sift through all these matters on your behalf. Let us help manage your license services needs.