South Dakota

Contractor License (Trade-Specific) in South Dakota

Requirements, filing process, and what you should expect to pay, without the broker pitch.

What this bond requires in South Dakota

South Dakota does not require a statewide general contractor license - local municipalities handle GC licensing. The state does license electrical and plumbing trades through separate commissions under the Department of Labor & Regulation. Per SDCL § 36-16-20, Electrical Contractors and Class B Electricians must file an undertaking (in lieu of a surety bond) obligating the licensee to the SD Electrical Commission for up to $10,000 for incomplete electrical installations and unpaid inspection/administrative fees. A $50 deposit is required at each biennial renewal. Plumbing licensing does not require a state bond.

Who requires it

The contractor license (trade-specific) is required by the South Dakota Department of Labor & Regulation - Electrical Commission and Plumbing Commission under SDCL ch. 36-16 (Electricians); SDCL ch. 36-25 (Plumbers); SDCL § 36-16-20 (electrical bond/undertaking).

How to file in South Dakota

For Electrical Contractor license: submit the application to the SD Electrical Commission with the Electrical Contractor and Class B Electricians Bond Application (printed, notarized, then uploaded), the $50 biennial deposit, and licensing fees. Local municipalities handle general contractor licensing separately and may impose additional bond requirements.

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FAQ

Common questions

Is a contractor license (trade-specific) required in South Dakota?

No statewide general contractor license. SD Electrical Commission requires a $10,000 undertaking/bond for Electrical Contractors and Class B Electricians (in lieu of surety bond under SDCL 36-16-20).

How much is the bond in South Dakota?

South Dakota does not publish a single flat amount. See the state-specific notes for how it is determined.

Who requires the bond?

The bond is required by the South Dakota Department of Labor & Regulation - Electrical Commission and Plumbing Commission.

How is the bond filed?

For Electrical Contractor license: submit the application to the SD Electrical Commission with the Electrical Contractor and Class B Electricians Bond Application (printed, notarized, then uploaded), the $50 biennial deposit, and licensing fees. Local municipalities handle general contractor licensing separately and may impose additional bond requirements.

What does the bond cover?

Surety bonds protect the obligee, not the principal. If you fail to meet the obligation the bond guarantees, the surety pays the claim and recovers from you.

Is a surety bond the same as insurance?

No. Insurance protects you. A surety bond protects whoever required the bond. You repay the surety for any claim they pay.

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