Real Estate Agent Permit Requirements in Sioux Falls, 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 Real Estate Errors and Omissions Insurance (required)

   Errors and omissions insurance is not merely advisable for South Dakota real estate licensees - it is required. SDCL 36-21A-119 directs the Real Estate Commission to adopt rules requiring, as a condition of licensure, that all real estate salespersons and brokers except those holding inactive licenses carry E&O insurance covering all activities under chapter 36-21A. Under SDCL 36-21A-120 the Commission may negotiate a group policy available to all licensees, and any licensee may instead obtain independent coverage that meets the Commission's minimum requirements. SDCL 36-21A-122 requires each licensee to be notified of the required terms and conditions at least 30 days before the biennial renewal date, and requires any licensee who does not participate in the Commission's group program to file a certificate of coverage with the Commission annually. Check the Commission's Errors and Omissions Insurance page for the current group carrier and minimum coverage terms before choosing an outside policy.

   Official government source

   Premium is set by the insurer, not the state; the Commission's group policy rate and the independent-coverage minimums are published on its Errors and Omissions Insurance page. Budget for this as a condition of keeping an active license, not an optional expense.·Coverage must be in force as a condition of active licensure. Licensees outside the group program must file a certificate of coverage with the Commission annually, and the Commission notifies licensees of required terms at least 30 days before each biennial renewal.

   Premium is set by the insurer, not the state; the Commission's group policy rate and the independent-coverage minimums are published on its Errors and Omissions Insurance page. Budget for this as a condition of keeping an active license, not an optional expense.

   Coverage must be in force as a condition of active licensure. Licensees outside the group program must file a certificate of coverage with the Commission annually, and the Commission notifies licensees of required terms at least 30 days before each biennial renewal.

1. South Dakota Real Estate Commission - Broker Associate License

   Real estate licensees in South Dakota are licensed by the SD Real Estate Commission (Department of Labor and Regulation, 605-773-3600). The entry-level resident license is called Broker Associate, not Salesperson; it requires the 116-hour prelicensing course, an exam score of 75 percent or better, and approval of the application. A Responsible Broker license additionally requires two years of active status plus a 24-hour Responsible Broker course. Every applicant must pass a state and federal criminal background check, submitting DCI and FBI fingerprint cards (or electronic Livescan submission). A license application must be filed within 60 days of the exam report date or the exam score is void.

   Official government source

   $225 application fee paid to the Commission, plus a separate $50 check to the Division of Criminal Investigations for the background check, plus the exam fee charged by the testing vendor. Renewal is $125 every two years (Broker, Broker Associate, Auctioneer, Property Manager and Firm; Home Inspector $100; Residential Rental Agent $50), with a $20 per month late renewal penalty.·Allow 2 to 4 weeks for the Commission to process a complete application after the exam; the application must be filed within 60 days of the exam report date

   $225 application fee paid to the Commission, plus a separate $50 check to the Division of Criminal Investigations for the background check, plus the exam fee charged by the testing vendor. Renewal is $125 every two years (Broker, Broker Associate, Auctioneer, Property Manager and Firm; Home Inspector $100; Residential Rental Agent $50), with a $20 per month late renewal penalty.

   Allow 2 to 4 weeks for the Commission to process a complete application after the exam; the application must be filed within 60 days of the exam report date

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 category·N/A unless your business falls in one of the listed licensed categories

   $0 for business types the city does not license; fees for the specific licensed categories vary by category

   N/A unless your business falls in one of the listed licensed categories

Official Sources

• South Dakota Real Estate Commission — Salesperson or Broker License
• City of Sioux Falls Finance Department

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