Complete guide to permits and licenses required to start a accounting / cpa in Sioux Falls, SD. Fees, renewal cycles, and agency contacts.
Required for all LLCs. Annual report filing also required ($50 fee, due by anniversary date).
Required for all LLCs to maintain good standing.
Prerequisites: 150 semester hours education, pass Uniform CPA Exam, 1 year supervised experience. Firm permits required separately if offering CPA services as business.
Required for LLCs providing CPA services. At least one owner must be licensed SD CPA; peer review required for certain firms.
Expires after 5 years unless renewed. Not required if using exact legal name.
Most accounting services exempt, but required if selling books/software/products.
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Required for all businesses; professional services like CPA exempt from state but local applies. Fees as of 2024 fee schedule.
Applies to businesses outside city limits; Sioux Falls handles its own.
Office use generally permitted in commercial zones; verify via zoning map.
Allowed for professional offices like CPA with limits on clients/traffic.
Compliant with unified sign code; electronic signs extra review.
CPA offices typically low-risk; may waive for small offices.
Required for all businesses including professional services.
Professional offices permitted in AG, Commercial zones.
Required to reduce false alarms.
Accounting/CPA firms do not handle food/public health risks.
South Dakota law (S.D. Codified Laws § 41‑5‑1) requires any employer with at least one employee to carry workers’ comp. The LLC’s owners who are not actively performing services are not considered employees for this purpose.
General liability is strongly recommended for any business that interacts with clients or the public, but South Dakota does not mandate it for accounting firms.
South Dakota law (S.D. Codified Laws § 36‑30‑5) requires all licensed CPAs and CPA firms to carry professional liability insurance with at least the stated minimum limits.
South Dakota CPA licensing rules (S.D. Codified Laws § 36‑30‑6) mandate a $10,000 surety bond as financial protection for the public against professional misconduct.
South Dakota minimum liability limits are $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage (S.D. Codified Laws § 32‑31‑1).
The accounting/CPA business does not sell physical products; therefore product liability coverage is not required nor industry‑specific.
Only required for businesses that manufacture, sell, or serve alcoholic beverages.
While not legally mandated, many CPA firms obtain cyber‑liability coverage to meet client contract requirements and mitigate breach risk.
All LLCs that have employees, operate as a partnership, or elect corporate tax treatment must obtain an EIN.
LLCs with more than one member are defaulted to partnership tax treatment (Form 1065). Single‑member LLCs are disregarded entities (report on Schedule C of Form 1040) unless they elect corporate taxation.
Even if no payroll tax is due, a zero return must be filed each quarter.
FUTA tax is 6.0% on the first $7,000 of each employee’s wages, reduced by state unemployment tax credits.
Even with fewer than 10 employees, OSHA can inspect for severe hazards. Recordkeeping (OSHA Form 300) required if >10 employees.
Requires reasonable modifications to policies, practices, and physical facilities for individuals with disabilities.
CPA firms must ensure all claims about services, fees, and qualifications are substantiated.
Even professional staff may be non‑exempt unless they meet the administrative/exempt criteria.
Many CPA firms are below the threshold; include note for future growth.
Employers may elect to use E‑Verify, a free online system.
Most private‑practice CPA firms are not subject to SOX.
Typical CPA practices have no hazardous waste; this requirement is listed for completeness.
The FTC Safeguards Rule, part of the Gramm-Leach-Bliley Act, requires financial institutions to protect customer information; accounting firms handling financial data are included. Compliance involves developing and implementing a written information security plan and taking reasonable measures to protect customer data.
The IRS generally requires retention of tax records for at least three years from the date the return was filed or two years from the date tax was paid, whichever is later, but certain records may need to be kept for longer periods.
An Employer Identification Number (EIN) is a unique tax identification number assigned by the IRS to businesses operating in the United States. You can apply for an EIN online through the IRS website; it is free to obtain.
While initial compliance with many FTC advertising and consumer protection rules doesn’t have a direct fee, non-compliance can lead to significant penalties and legal costs. Some specific FTC rules may have associated costs for things like data security assessments.
IRS Circular 230 governs the standards of practice for enrolled agents, attorneys, and CPAs representing taxpayers before the IRS. Compliance ensures you adhere to ethical and professional standards, and fees for compliance can range from $250.00 to $100000.00.
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