Daycare / Child Care Center Permit Requirements in Sioux Falls, SD

Complete permit and license guide for starting a daycare / child care center in Sioux Falls, Minnehaha County, South Dakota.

Verified 2026-09-07 6 stops $500–$2,000 est. 8–16 weeks to obtain all licenses and pass inspections
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Not legal advice. Requirements may change — always verify with your local government authority before applying. Key agencies and fees on this page were re-checked against official government sources on .

Federal — start here

1 stop
  1. EIN (Employer Identification Number)

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

    Official government source

    FreeImmediate (online application)

State of South Dakota

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

  2. South Dakota Child Care Provider Background Screening

    Federal law (45 CFR 98.43) requires all registered and licensed child care providers, and informal and in-home providers receiving Child Care and Development Fund money, to complete in-state and out-of-state background screenings covering staff, volunteers, and household members age 18 and over. In-state screenings cover the SD central registry of child abuse and neglect, the SD sex offender registry, an NCIC check, and a state criminal record repository search; out-of-state central registry and criminal record checks are required for every state a person has lived in during the previous five years. In-state screenings must be repeated every five years.

    Official government source

    Free to the provider - SD DSS states providers do not need to submit payment and that 'DSS will pay any fees required'; the central registry and state repository searches carry no feeA central registry screening averages 5-7 business days from receipt; out-of-state screenings take longer and vary by state

City of Sioux Falls / Minnehaha County

3 stops
  1. South Dakota Department of Social Services - Child Care License

    Child care centers and group family day care programs in South Dakota must be licensed before operating, regardless of funding source, by the Department of Social Services' Office of Licensing and Accreditation / Child Care Services (800-227-3020). The governing law is SDCL ch. 26-6 (Children's Homes and Welfare Agencies), with health and safety rules in ARSD 67:42:17 (child care licensing) and construction requirements in ARSD 61:15:05 (day care centers) and ARSD 61:15:06 (group family). Licensing requires a floor plan review, background screening for everyone 18 and older in the program, compliance with staff-to-child ratios, and health and fire safety inspections; programs are inspected each year. The licensing process is started through the OLA Provider Portal. Inside Sioux Falls, the City Health Department (605-367-8760) separately inspects daycares and publishes inspection reports for family home daycares in the city.

    Official government source

    SD DSS publishes no child care license application fee, and the state pays for the required background screenings - the department states that providers 'do not need to submit payment if there is a fee indicated. DSS will pay any fees required.' The South Dakota central registry and criminal record repository searches are themselves free.Background screening results are returned in an average of 5-7 business days. Overall licensing time depends on floor plan review, background screening, and passing health and fire safety inspections; contact Child Care Services at 800-227-3020 for current timelines.

  2. No Sioux Falls General Business License Required

    Sioux Falls has no general business license, and business licensing is not handled by the Finance Department. The Licensing Office operates under the City Attorney's Office and states that 'not all businesses and professions need City licensing'; Code of Ordinances Sec. 110.026 lists the complete set of licenses the city issues. Licensing is split across departments: City Attorney's Office (alcohol, medical cannabis, pawnbroker and secondhand dealers, transportation services, circus, fortune telling, motion picture theater, livery, charitable/educational/religious registration), City Clerk (raffle and bingo), Police Records (alarm businesses, peddler/mobile food), Planning and Building Services (contractor licensing), Landfill (hauler license), Water Reclamation (liquid waste generators), and the Sioux Falls Health Department (daycare, tattoo artist and establishment). Massage therapists are licensed by the state Board of Massage Therapy. If your business type is not on that list, no city license is required.

    Official government source

    $0 for business types the city does not license; fees for the specific licensed categories vary by categoryN/A unless your business falls in one of the listed licensed categories

  3. Sioux Falls Building and Daycare Inspections for Child Care Centers

    Child care centers in Sioux Falls are inspected by the city, not by Minnehaha County. The City of Sioux Falls runs its own Health Department (521 N. Main Ave., 605-367-8760), which publishes daycare inspection reports for providers inside city limits, and Building Services (605-367-8670) performs building, electrical, mechanical, plumbing, and property maintenance inspections. Any tenant improvement or change of use to a child care occupancy requires a building permit and plan review before the certificate of occupancy is issued. These city inspections are in addition to South Dakota Department of Social Services child care licensing, which itself requires health and fire safety inspections and compliance with staff-to-child ratios.

    Official government source

    Sioux Falls building permits start at $40 and scale with total project value per the city's published fee schedule; mechanical, electrical, and plumbing permits start at $40 for the first $5,000 of MEP valuation. The Health Department publishes no separate daycare inspection fee.All building permits begin with a plan review; contact Building Services (605-367-8670) to schedule and the Health Department (605-367-8760) for daycare inspection scheduling

Terminus

Open for business — est. $500–$2,000 · 8–16 weeks to obtain all licenses and pass inspections

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