South Dakota Business Licensing Information for Contractors


south dakota independent contractors

Contractor’s License Requirements in South Dakota

In the state of South Dakota, general construction contractors are not licensed at the state level. As such, you should refer to your city or county governments in order to obtain the proper licensing applications as needed. Currently, the state of South Dakota issues licenses for asbestos abatement, electrical contractors and plumbing contractors.

South Dakota Business Licensing for Electricians

Electrical Contractor and Electrician Licenses in South Dakota

In South Dakota, licenses are available for master electrician, residential wireman and journeyman. Information on these licenses is provided by the Department of Labor and Regulation.  

Applications are available for the following licenses which include the associated fees:

Electrical Contractor, Journeyman, and Class B Electrician

Apprentice Electrician

Maintenance Electrician

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Business Licensing Information for Plumbers in South Dakota

In order to do plumbing work in the state of South Dakota, the state requires you to have a license. On the website for the Plumbing Commission, plumbers can access information on applying to become a plumber, rules and regulations, and the plumbing code.

Applications are linked and require a $340 fee for Plumbing Contractor, $185 fee for Journeyman Plumber, and Apprentice Plumber’s license for $10. Completed applications should be sent to the following address:

South Dakota State Plumbing Commission

308 South Pierre Street

c/o 1320 East Sioux Avenue

Pierre, South Dakota 57501-2017

Phone: 605-773-3429

 

Additional Business Licensing for All Businesses in South Dakota

Business and Occupational Licenses

Information for business and occupational licenses in the state of South Dakota can be obtained from the Governor’s Office of Economic Development. There are many professions in South Dakota that require licensure by businesses operating in the state.

From the website, you can download the following informational PDF files:

South Dakota Business Tax Information

Business Tax Registration

Any business operating in the state of South Dakota must register for a tax identification number, licenses or applicable permits, sales tax accounts and unemployment insurance tax using the website for the Governor’s Office of Economic Development. To determine your tax liability or to make online payments, consult the website linked.

The Department of Revenue’s website can also be used for general tax information and forms related to taxes.

Insurance Requirements for Businesses in South Dakota

Unemployment Tax Requirements

Unemployment insurance is required to be paid by every business operating in South Dakota. This process is managed and regulated by the state’s Department of Labor and Regulation. Under certain conditions, your business may need to remit payment for unemployment insurance taxes.

Workers’ Compensation Requirements

With very few exceptions, employers in the state of South Dakota who employ more than one worker must get and maintain Workers’ Compensation Insurance. Using the website for the Department of Labor and Regulation, you can obtain coverage, report your intent to self-insure and verify that a company has the necessary insurance to meet the state’s requirements.

Under the law, the premiums paid for this type of insurance coverage is always paid for by the employer and should never be deducted from the employee’s earnings.

For more information, contact can be made with the Workers’ Compensation Division using the address below:

Workers’ Compensation

Division of Labor and Management

South Dakota Department of Labor and Regulation

Kneip Building

700 Governors Drive

Pierre, SD 57501-2291

Phone: 605-773-3681

Fax: 605-773-4211

New Hire Reporting Requirements for Businesses in South Dakota

Reporting New Hires

Under federal law, employers are required to report newly hired employees within 20 days of their hire date. The following information can be reported using the website for the New Hire Reporting Center:

  • Employee’s name
  • Address
  • Social Security Number
  • Date of birth
  • Hire date
  • Employer’s name
  • Payroll address
  • Federal identification number (FEIN)

Employers may use the website for reporting, fax the information to 888-835-8659 or by sending it to the following address:

New Hire Reporting Center

South Dakota Department of Labor and Regulation

P.O. Box 4700

Aberdeen, SD 57402-4700

Licensed Contractors in South Dakota

In order to verify licensure in the state of South Dakota, you can use the search provided by the South Dakota Board of Technical Professions.