Handyman Business Permit Requirements in Aberdeen, SD

1. EIN (Employer Identification Number)

   Required if you have employees or operate as an LLC or corporation. Free from the IRS.

   Official government source

   Free·Immediate (online application)

   Free

   Immediate (online application)

1. South Dakota Department of Revenue - Sales Tax License

   Any business with a physical presence in South Dakota must be licensed for sales tax collection, and South Dakota taxes services as well as tangible personal property and products transferred electronically. The state sales and use tax rate is 4.2 percent (reduced from 4.5 percent), and municipal sales and use tax of generally 1 to 2 percent applies where the purchaser receives the product or service. Remote sellers and marketplace providers with more than $100,000 in gross sales into South Dakota in the previous or current calendar year must also license and remit. Register using the Department of Revenue's online Tax License Application.

   Official government source

   Free - there is no fee for a South Dakota sales tax license·Apply online through the Tax License Application; the license is typically issued within a few business days

   Free - there is no fee for a South Dakota sales tax license

   Apply online through the Tax License Application; the license is typically issued within a few business days

2. South Dakota Contractor's Excise Tax License

   South Dakota has no statewide general contractor license. Instead, any person entering into a contract for construction services (Division C of the 1987 SIC Manual) or performing construction, building, installation, or repair of a fixture to real property must hold a South Dakota contractor's excise tax license from the Department of Revenue. A 2% excise tax applies to the gross receipts of prime contractors on realty improvement contracts (SDCL 10-46A-1). Register online through the DOR tax license application. Entity formation (LLC, corporation, partnership) is filed separately with the Secretary of State, and local building permits still apply per project.

   Official government source

   $0 - South Dakota DOR charges no fee for a sales or contractor's excise tax license; the tax itself is 2% of gross receipts·Apply online through the DOR Tax License Application; the license card is issued once the application is approved

   $0 - South Dakota DOR charges no fee for a sales or contractor's excise tax license; the tax itself is 2% of gross receipts

   Apply online through the DOR Tax License Application; the license card is issued once the application is approved

1. No Aberdeen General Business License Required

   Aberdeen does not issue a general business license. The City Finance Office (Auditor Division, 605-626-7023) issues licenses only for a specific enumerated list of activities: ambulance driver, ambulance service, garbage hauler, community event, day care, junk dealer, lottery notice, mobile home park, pawn broker, street use, shooting gallery, special event alcohol, taxi/motorbus company, taxi/motorbus driver, transient merchant/solicitor, and alcohol. Trades such as plumbing, HVAC, and pest control are not on that list and need no city business license. Their state-level licensing applies instead: plumbing through the SD Plumbing Commission, pesticide application through SD DANR, and there is no statewide HVAC or mechanical contractor license. A South Dakota sales tax license from the Department of Revenue is still required.

   Official government source

   $0 - no general business license exists·N/A - no application

   $0 - no general business license exists

   N/A - no application

2. City of Aberdeen Building Permit (for regulated work)

   Building permits inside Aberdeen city limits are issued solely by the City of Aberdeen Building Inspection Department (123 S. Lincoln St., 3rd floor, 605-626-7017); Brown County has no building-permit role within the city. Aberdeen enforces the 2018 International Building, Existing Building, Mechanical, Property Maintenance, and Residential Codes, the 2015 South Dakota version of the Uniform Plumbing Code, and 2009 ANSI accessibility standards. Structural modifications and mechanical work require a city permit. Electrical wiring permits and inspections instead run through the South Dakota Electrical Commission (605-773-3573), and plumbing work requires SD Plumbing Commission licensure. A handyman may not perform work that requires a state trade license. Aberdeen exempts some minor work from permits, including painting and papering, replacing flooring, cabinetry, countertops, trim, and interior doors, playground equipment, retaining walls under four feet, and (since July 1, 2026) like-for-like replacement of doors, windows, non-structural siding, and fence panels on detached single-family owner-occupied homes.

   Official government source

   Set by Aberdeen's 2026 Building Fee Schedule, which is valuation-based: $35 for work valued at $1-$500; $35 plus $3.50 per additional $100 up to $2,000; $87.50 plus $12.41 per additional $1,000 up to $25,000; $372.93 plus $9.31 per $1,000 up to $50,000; $605.68 plus $6.47 per $1,000 up to $100,000; $929.18 plus $5.88 per $1,000 above that. Residential structures are valued by square foot (for example dwellings at $63.75/sq ft, unattached garages at $13.55/sq ft). The schedule notes published amounts are approximate and may vary slightly.·Permits are applied for in person at the Building Inspection office on the 3rd floor of City Hall; contact 605-626-7017 for current review and inspection scheduling

   Set by Aberdeen's 2026 Building Fee Schedule, which is valuation-based: $35 for work valued at $1-$500; $35 plus $3.50 per additional $100 up to $2,000; $87.50 plus $12.41 per additional $1,000 up to $25,000; $372.93 plus $9.31 per $1,000 up to $50,000; $605.68 plus $6.47 per $1,000 up to $100,000; $929.18 plus $5.88 per $1,000 above that. Residential structures are valued by square foot (for example dwellings at $63.75/sq ft, unattached garages at $13.55/sq ft). The schedule notes published amounts are approximate and may vary slightly.

   Permits are applied for in person at the Building Inspection office on the 3rd floor of City Hall; contact 605-626-7017 for current review and inspection scheduling

Official Sources

• City of Aberdeen City Finance Office
• South Dakota Contractor Registration

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