How to Get a Seller’s Permit in South Dakota

Starting a business in South Dakota is an exciting venture, but it’s crucial to understand the legal requirements that come with it. A common area of confusion for many new business owners is understanding the need for a Sales Tax License, also known as a sales tax permit or seller’s permit. This permit allows you to collect sales tax on taxable products and services from customers in South Dakota.

This blog will guide you through each step of applying for a sales tax permit, with clear instructions to help you and your business begin collecting sales tax effortlessly.

  Related Topics:

• What is a Seller’s Permit?

Who Needs a Seller’s Permit in South Dakota?

A business must register for a sales tax permit in South Dakota if:

• you meet physical or economic nexus within the state and
• you are selling taxable products or providing taxable services to customers in South Dakota

How to Register for a Seller’s Permit in South Dakota?

When applying for a South Dakota Sales Tax Permit, you can use the online application process on the South Dakota Department of Revenue website to complete your sales tax registration.

 

1. Where to Apply for a Seller’s Permit in South Dakota?

There are two options to choose from when applying for a seller’s permit in South Dakota. To do either of these options, go to Tax License Application.

Under the “Complete Your Application or Renewal” you will find three options:

• OPTION 1 – Complete Without an Account: Click on this option if you want to complete and submit an application for a seller’s permit in South Dakota without creating an online user profile.
  • You will be led to another page where you will click on “Start New Application”
  • Then click on “Apply for Business Tax License”
• OPTION 2 – Sign Up (Recommended Option): Click on this option if you want to apply for a seller’s permit in South Dakota, and simultaneously gain access to your future saved applications and renewals by creating an online user profile.
  • You will be led to another page where you will need to create an online user profile, with a username and a password.
  • Once this part is complete, click on  “Apply for Business Tax License
• Sign In: Click this option if you already have an account. But for the purpose of this guide, we will focus on Option 1 and Option 2.

Whether you choose Option 1 or Option 2, you will be led to the same page where you can fill up your South Dakota Tax Application.

Start by choosing the right ownership type for your business. You will then need to select what business tax license you are applying for. Make sure to select  “ST-Sales Tax” since you’re applying for a seller’s permit.

You will then follow through the prompts that walk you through your registration process and provide the necessary information.

Note: Qualifying remote sellers needed to get a sales tax permit with multiple states can register through the Streamlined Sales Tax Registration System.

 

2. What Information Do You Need to Get a Seller’s Permit in South Dakota?

To successfully acquire a seller’s permit in South Dakota, it’s important to prepare and provide specific information and documents. The following is a list of the necessary information and documents required to register a sales tax permit in South Dakota:

• Business Identification Information: Legal Business Name, Physical Address, Mailing Address 
• Business Entity Structure (i.e., Sole Proprietorship, Partnership, Subchapter S Corp., Corporation, LLC, etc.)
• Federal Employer Identification Number (EIN or FEIN)
• Name, Address, and SSN of Owners, Partners, or Officers 
• Business Activity Details: Date & State of Incorporation, Start Date With South Dakota (Nexus Start Date), Estimated Annual Taxable Sales in South Dakota
• NAICS Code

 

3. How Much are the Fees for Applying for and Renewing a Seller’s Permit in South Dakota?

Registering for a sales tax permit in South Dakota is free, and you won’t need to provide payment details to acquire your permit.

South Dakota sales tax permit does not need to be renewed and remains valid for as long as the business exists without any changes in ownership or structure.

 

4. What are Other Ways to Register for a Seller’s Permit in South Dakota?

• Use TaxHero. Registering for a seller’s permit, mainly when it involves multiple permits, can be a tedious and time-consuming task requiring much effort. Let the experts at TaxHero save you from this hassle, and let us handle the registration process in all states where you have nexus as part of our all-inclusive sales tax service.

 

What’s Next?

After submitting your sales tax permit application, a representative from the South Dakota Department of Revenue will call you. They will verify the information you provided during the registration process and explain the applicable sales tax rates in South Dakota.

Following this call, you will also receive an email, which will contain your account details, including your account number. With this information, you can access your South Dakota account on EPath.

Within 7 to 10 business days of your application being approved and you receiving your confirmation email, you will receive the official paper copy of the South Dakota sales tax permit at the mailing address provided in your application.

Obtaining a sales tax license requires you to collect sales tax for eligible sales in South Dakota. The document will also specify your filing frequency for sales tax returns and due dates.

Remember that if your business has a physical location in South Dakota, the Seller’s Permit must be visibly displayed at all times at the place for which the certificate is issued.

If you ever encounter any difficulties, have any questions, or prefer TaxHero to manage these tasks on your behalf, don’t hesitate to reach out! Contact us today.