What state registrations are required before opening a business?

State Registrations Required Before Opening a Business in South Dakota

Before starting your business operations in South Dakota, several state registrations are necessary to ensure compliance and smooth functioning.

1. Register Your Business Entity

South Dakota requires you to register your business entity with the Secretary of State. This applies to corporations, limited liability companies (LLCs), partnerships, and nonprofits.

• Filing: Submit Articles of Incorporation or Articles of Organization online or by mail.
• Fees: Pay the applicable filing fee based on your business type.
• Annual Reports: Prepare for ongoing annual report submissions to maintain good standing.

2. Obtain a South Dakota Business License

South Dakota does not have a general state business license, but specific industries may require state-level permits or licenses. Check if your business activity requires specialized licensing.

3. Register for State Taxes

If your business will collect sales tax, have employees, or be subject to other state taxes, register with the South Dakota Department of Revenue.

• Sales Tax License: Required if you sell taxable goods or services.
• Withholding Tax Account: Required if you have employees for payroll tax withholding.
• Other Taxes: Depending on your business, you may need to register for contractor’s excise tax or other relevant taxes.

4. Employer Registrations

If hiring employees, register with the South Dakota Department of Labor and Regulation.

• Unemployment Insurance: Set up an account to report and pay unemployment insurance taxes.
• Workers’ Compensation: Obtain workers’ compensation insurance coverage as required.

5. Additional Permits and Registrations

Depending on your business type and location, you may need additional permits such as health permits, environmental permits, or local city/county licenses.

Summary

As of 2026, to start a business in South Dakota, you must register your business entity with the Secretary of State, register for applicable state taxes with the Department of Revenue, and complete employer registrations if you have employees. Verify any industry-specific licenses and local permits to ensure full compliance before opening.