South Dakota contractor licenses: state trades, city licenses and what is unlicensed

South Dakota's licensing map has a gap in the middle. The state tests and licenses the trades that touch wiring and pipes. It does not run a general contractor board. Cities fill that gap, and the answer to "do I need a license" depends on the town on the job ticket. This page sorts what the state requires from what cities require. It is general information. Confirm with the agency before you act.

The two state commissions

Both sit under the South Dakota Department of Labor and Regulation.

• The State Electrical Commission licenses electricians, issues wiring permits and inspects installations. Permits received on or after November 12, 2024 are inspected under the 2023 National Electrical Code.
• The State Plumbing Commission licenses plumbing contractors, plumbers, and the specialty installers listed below.

Electrical licenses and the bond

The commission's licensing page lays out the ladder in hours. A journeyman needs four years and 8,000 hours as a licensed apprentice under a contractor's supervision, then passes the journeyman exam. An electrical contractor needs two more years as a journeyman, 4,000 additional hours, with at least 2,000 of them in commercial work, then passes the contractor exam. The page also lists a Class B electrician license without stating hours.

Contractors and Class B electricians must file an undertaking (a bond) of $10,000 with the commission, and a $50 deposit is due when it is executed and at each biennial renewal. They must also carry public liability insurance of at least $100,000 per occurrence and $300,000 aggregate. A licensed electrician working for a partnership or corporation that meets the requirements is exempt personally. Renewal needs 16 hours of continuing education, including at least 8 code hours, and only 8 hours may be pre-approved online courses.

The commission lists reciprocity with 14 states. Minnesota, Nebraska, North Dakota and Wyoming are among those that cover journeymen and electrical contractors. Others, such as Alaska, Colorado and New Mexico, cover journeymen only. To qualify you must have earned the license by examination in that state and held it in active status for a year. Our national guide on becoming a licensed electrician covers the usual path.

Plumbing and the specialty installers

The plumbing commission's requirements are written in years and hours: 1,900 hours per year.

Military service earns one year of credit for every two years served, up to five years, toward the plumber license. Renewal dates and continuing education for plumbing licenses are set by the commission and state law, and the commission's licensing page does not list them, so confirm both before you renew. For nonresidents, SDCL 36-25-21 lets the commission register applicants from states whose plumber rules are substantially equivalent, and the commission's rule asks that the applicant was licensed by exam. If you are working through that, see our licensed plumber guide.

A homeowner may do plumbing in their own single-family residence without a license, but only under a homeowner plumbing installation certificate (SDCL 36-25-17). The commission lists a $130 fee, a two-year life for the certificate, and three required inspections. Commercial and rental properties are excluded.

The contractor's excise tax license is not optional

This is not a trade license, but it behaves like one. The Department of Revenue says anyone who enters a contract for construction services, or whose services include construction, building, installation or repair of a fixture to real property, must hold a South Dakota contractor's tax license. The tax is 2 percent of gross receipts, and the department suggests a bid factor of 2.041 percent so the tax itself is covered.

On subcontracted jobs, the prime contractor issues an exemption certificate for each project, and a subcontractor without one is treated as a prime contractor owing the tax. The department's page does not say whether a given handyman job counts, so call before you assume. The sales tax on home services table shows how this differs from sales tax, which the state applies to most services at 4.2 percent plus municipal tax.

Cities license the rest, and Sioux Falls shows how far that goes

We found no state-level license for general contractors, roofers or painters. Cities set their own. The City of Sioux Falls lists these contractor license types:

• Building: commercial building contractor, residential building contractor, residential roofing and repair contractor, and right-of-way contractor.
• Electrical: electrical contractor, Class B electrician, apprentice and journeyman. Apprentices and journeymen need both a state and a city license.
• Mechanical: mechanical contractor, fireplace contractor and refrigeration contractor.
• Plumbing: master plumber contractor, plumber apprentice, plumber journeyman and mobile home plumbing installation contractor.
• Other: irrigation contractor, and sign and outdoor advertising contractor.

Right-of-way contractors must be bonded and insured before they work in a city right-of-way. The city also runs a continuing education course for residential contractors. For exam, bond and fee details the city refers applicants to its licensing desk, so ask there. A town down the road may require none of this, and another may require its own. The rule of thumb is to call the building or licensing office in each city where you take jobs.

Pesticide applicators

The Department of Agriculture and Natural Resources certifies commercial pesticide applicators. Every applicant takes the commercial category G (general, core) exam plus the category exams for the applications they make. The department charges $35 for the commercial applicator license. Certification and licensure last two years, and you must be recertified and renewed by the last day of February in the year of expiration. Recertification runs through state courses in person or online, or approved out-of-state events. Lawn care companies that spray herbicide fall here. See our pest control license guide for the national picture.

Trades with no state license

Mowing, house cleaning, junk removal, pressure washing and snow plowing are not on either commission's list or any state list we found. As of October 2026, handyman work that does not touch wiring or plumbing is also off both lists, though a city may require a contractor license. Most of these services are subject to sales tax in South Dakota, so you still register with the Department of Revenue, and a city business license may apply. We found no state home inspector or locksmith board in the sources we checked, so confirm that with the Department of Labor and Regulation if you work in those trades.

Two other items apply to every crew. Check workers' compensation too. The Department of Labor and Regulation says the workers' compensation law covers nearly all employers with limited exceptions, and an employer that skips coverage can lose legal protections if a worker is hurt, so confirm your obligations with the department. Read our workers' comp by state guide and the business insurance guide before you skip it. Electrical contractors also have the insurance floor above.

Show your credentials where customers look

Customers in a state with local licensing look for proof. List the state license number for electrical or plumbing, the city license for your town, and your tax license on your website, using the names and numbers on your records. See our guide to what a contractor website needs and the setup page for starting a service business in South Dakota. Rules change, so confirm each requirement with the agencies linked here. Nothing here is legal advice.

Frequently asked questions