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Start a Business in South Dakota

Costs, permits, taxes, and requirements for SD.

Cost Index

91%

9% below avg

Income Tax

None

Sales Tax

4.5%

LLC Fee

$150

South Dakota is one of 9 states with no income tax!

Business Guides for South Dakota

Cleaning Business

$1,800 - $9,100

Lawn Care

$2,700 - $18,200

Pressure Washing

$2,700 - $18,200

Food Truck

$45,500 - $182,000

Photography

$1,800 - $27,300

Bakery

$18,200 - $136,500

Restaurant

$159,300 - $682,500

Coffee Shop

$72,800 - $318,500

Catering

$9,100 - $68,300

Landscaping

$4,600 - $45,500

Handyman

$1,800 - $9,100

Pool Cleaning

$1,800 - $13,700

Pest Control

$9,100 - $45,500

Carpet Cleaning

$4,600 - $22,800

Window Cleaning

$900 - $9,100

Junk Removal

$4,600 - $45,500

Moving Company

$9,100 - $91,000

HVAC

$18,200 - $91,000

Plumbing

$13,700 - $68,300

Electrician

$13,700 - $68,300

Auto Detailing

$4,600 - $136,500

Car Wash

$45,500 - $455,000

Pet Grooming

$4,600 - $68,300

Dog Walking

$500 - $4,600

Barber Shop

$22,800 - $136,500

Hair Salon

$45,500 - $227,500

Nail Salon

$36,400 - $182,000

Mobile Spa

$4,600 - $27,300

Bookkeeping

$1,800 - $13,700

Tax Preparation

$2,700 - $18,200

Notary Services

$500 - $4,600

Consulting

$900 - $18,200

Event Planning

$4,600 - $27,300

DJ Service

$2,700 - $22,800

Wedding Photography

$4,600 - $27,300

Web Design

$900 - $9,100

Graphic Design

$900 - $9,100

Social Media Management

$500 - $4,600

Personal Training

$1,800 - $45,500

Gym

$45,500 - $455,000

Tutoring

$500 - $4,600

Daycare

$45,500 - $455,000

Vending Machine

$2,700 - $27,300

Massage Therapy

$4,600 - $45,500

Yoga Studio

$13,700 - $91,000

Laundromat

$91,000 - $455,000

Florist

$9,100 - $45,500

Ice Cream Shop

$18,200 - $91,000

House Painting

$1,800 - $13,700

Tree Service

$9,100 - $45,500

Interior Design

$1,800 - $13,700

E-Commerce

$500 - $9,100

Pet Sitting

$500 - $2,700

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Business Requirements in South Dakota

1

Register Your Business

File with South Dakota Secretary of State. LLC fee: $150

2

Get Business License

Most cities require a general business license ($50-$300).

3

Get EIN

Free from IRS. Required for bank accounts and taxes.

4

Register for Sales Tax

State rate: 4.5%. Local taxes may apply.

5

Get Business Insurance

General liability protects from lawsuits. Often required by landlords.

Frequently Asked Questions

How much does it cost to start a business in South Dakota?
Startup costs in South Dakota are 9% lower than the national average. LLC filing costs $150, plus business license ($50-$300). Total varies by business type.
Does South Dakota have income tax?
South Dakota has no state income tax, making it attractive for business owners.
What is the sales tax in South Dakota?
The state sales tax in South Dakota is 4.5%. Local taxes may apply.
How do I form an LLC in South Dakota?
File Articles of Organization with the Secretary of State (fee: $150). You'll also need an Operating Agreement and EIN from the IRS.

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