Barber / Cosmetology Permits & Licenses in Sioux Falls, SD

FUTA is a federal tax; employers must register using Form SS-4 (EIN) and file Form 940 annually. South Dakota does not impose an additional FUTA-like tax.

Many South Dakota cities (e.g., Sioux Falls, Rapid City, Aberdeen) require a local business license or privilege tax registration. Fees and requirements vary. Contact city clerk for specific rules. Barber shops may be subject to additional zoning or health regulations at the local level.

South Dakota does not impose a specific excise tax, tourism tax, or occupational tax on barbers or cosmetologists beyond standard sales tax on retail products. No additional industry-specific tax exists.

Sioux Falls requires all businesses to obtain a city business license. Check specific city clerk for other SD cities like Rapid City (similar $55 fee per Rapid City Code 5.04).

Not all counties require (e.g., Pennington County defers to Rapid City). Verify with county auditor.

Barber shops permitted in C-1/C-2 zones per Sioux Falls Zoning Ordinance 105.010. Site plan review required for new locations.

Rapid City Zoning Ordinance 17.50.020 restricts home barber/cosmetology to appointment-only, no signage >2 sq ft.

Required for all LLCs; annual report required separately

Applies to all LLCs; filed online

Requires 2,100 hours education or apprenticeship + exam (written/practical); individual practitioner license required to perform services

Requires 1,500 hours education or apprenticeship + exam (written/practical); individual practitioner license required to perform services

Requires licensed manager/owner on-site; must meet facility/sanitation standards; at least one licensed cosmetologist/barber required

Renewal every 5 years for $10; required if DBA used

Monthly/quarterly filing required; cosmetology services generally nontaxable but product sales are

Barber and cosmetology services are generally exempt from sales tax in South Dakota, but the sale of tangible personal property (e.g., shampoos, conditioners, styling products) is subject to sales tax. Registration is required if such items are sold. Services themselves are not taxed.

Employers must withhold state income tax from employee wages. South Dakota does not have a state individual income tax, so no withholding is required for state income tax purposes. However, federal withholding still applies. This registration is not required in South Dakota due to the absence of a state income tax.

Required for any structural changes per adopted International Building Code.

Sioux Falls Sign Code 140 limits barber pole signs to 20 sq ft max.

Local health inspectors enforce state sanitation rules (e.g., Sioux Falls DOH). Includes sinks, ventilation, sterilization.

Requires 2 exits, extinguishers, no storage in aisles per IFC 2018.

All employers with one or more employees must register. The tax is paid quarterly. New employer rate is 2.5% on the first $16,000 of each employee’s annual wages. Rate may change based on claims history.

South Dakota does not impose a corporate income tax, franchise tax, or gross receipts tax on LLCs or other business entities. This requirement does not apply.

Even single-member LLCs without employees may need an EIN to open a business bank account or if taxed as a corporation. Obtained via IRS Form SS-4 or online application.

LLC taxed as disregarded entity or partnership must file annually and may require quarterly estimated tax payments by owners. South Dakota does not tax income, but federal obligations remain.

Barbershops are typically considered Conditionally Exempt Small Quantity Generators (CESQG) if producing <220 lbs/month of hazardous waste. Must dispose of sharps in approved containers and follow state/local disposal rules. EPA does not typically require federal permits for such small quantities.

Applies to all businesses. Barbershops must ensure advertising (e.g., pricing, service claims) is truthful and not deceptive. Includes online ads, social media, and promotional materials. No specific federal license, but subject to FTC Act §5.

All employers, including barber shop LLCs, must verify identity and employment authorization of every employee using Form I-9. Employers must retain forms for 3 years after hire or 1 year after employment ends.

Barbershops must comply with FLSA if engaged in interstate commerce (which most are). Includes minimum wage, overtime, and recordkeeping. Tipped employees (if any) must still receive at least $7.25/hour when tips are included.

Requires eligible employers to provide up to 12 weeks of unpaid, job-protected leave per year for qualifying medical or family reasons. Most small barber shops do not meet the 50-employee threshold.

The FDA regulates hair dyes, shampoos, and other cosmetic products used in barbershops. Businesses must not use misbranded or adulterated products. No federal license required to use cosmetics, but products must comply with labeling and safety standards.

There is no federal license for barbers or cosmetologists. Licensing is regulated entirely at the state level (South Dakota Board of Barber Examiners). This is a state, not federal, requirement.

Renewal can be completed online; must submit proof of required continuing‑education hours.

At least 6 hours must be in health & safety topics. Online courses approved by the DLR are acceptable.

Rapid City and other municipalities have similar requirements; check the specific city website for exact fee schedule.

Once registered, the business must file sales‑tax returns either monthly, quarterly, or annually depending on tax liability.

Required if fire alarm system installed per local fire code.

Sioux Falls has similar ordinance; false alarms trigger escalating fines.

Chapter 9.08 prohibits excessive noise >55dB daytime.

South Dakota law (SD Codified Laws §41‑5‑1) requires any employer with at least one employee to carry workers’ comp insurance or be approved for self‑insurance.

While not a statutory requirement, many municipalities and insurers require general liability as a condition of operating permits.

Recommended for any business where personal services are rendered and client injury claims are possible.

South Dakota allows electronic filing via the e‑Tax portal.

Employers must also post the SD UI notice in the workplace.

Most SD employers have no state income tax withholding, but must still file a NIL return if no tax is due.

LLC taxed as partnership by default; may elect corporate taxation.

Form 940 (annual FUTA) is due January 31 for the prior year.

Includes sales‑tax returns, payroll tax filings, and supporting invoices/receipts.

South Dakota minimum wage poster (if applicable) must also be displayed; see https://dlr.sd.gov/minimum-wage.cfm

Inspections verify sanitation, equipment, and compliance with state cosmetology rules.

Check the specific city’s fire‑code office for exact dates and fees.

Update must be submitted online or via mailed form to DLR.

South Dakota Statutes § 36‑31‑5 require a $5,000 surety bond for each Barber/Salon license to protect the public against violations of the licensing statutes.

South Dakota law (SD Codified Laws § 32‑21‑1) mandates minimum liability limits of $25,000 per person, $50,000 per accident for bodily injury, and $25,000 for property damage.

While not mandated, many retailers carry this coverage to protect against claims arising from product defects.

Only required for establishments that hold a liquor license; a barber shop without alcohol sales is exempt.

South Dakota Statutes § 36‑31‑6 require a sanitation bond to ensure compliance with health and safety standards for barber and cosmetology establishments.

While not required for all sole proprietorships, an EIN is mandatory for LLCs with employees or multiple members. Even single-member LLCs often obtain one for banking and licensing purposes.

A single-member LLC is disregarded for federal tax purposes and reports income on Schedule C of Form 1040. Multi-member LLCs are taxed as partnerships and must file Form 1065. All owners pay self-employment tax on net earnings.

Barbershops must comply with OSHA’s bloodborne pathogens standard (29 CFR 1910.1030) due to potential exposure to blood via cuts or nicks. Requires exposure control plan, training, and provision of PPE. Also must display OSHA poster (Form 2203).

All barber shops open to the public must comply with ADA Standards for Accessible Design. This includes accessible entrances, pathways, restrooms, and service counters. Applies regardless of number of employees or business size.