Brewery / Distillery Permits & Licenses in Aberdeen, SD

All retailers of tangible personal property, including alcoholic beverages, must obtain a sales tax permit. South Dakota’s state sales tax rate is 4.5% and may be combined with local option taxes.

Required for all LLCs. Annual report also required ($50 fee, due by anniversary month).

Renewal every 5 years for $10.

Issued by Alcohol Beverage Division. Specific to brewing malt beverages.

Issued by Alcohol Beverage Division. Fees scale with production volume.

Requires local municipal approval. On-sale vs. off-sale licenses available.

Required for selling to retailers.

Monthly/quarterly filing required based on revenue. Alcohol sales are taxable.

Applies to facility construction.

Businesses with average monthly sales under $5,000 may be permitted to file quarterly; otherwise filing is monthly.

While not required by South Dakota statutes, many distributors and retailers require proof of product liability insurance as a condition of doing business.

Not a legal requirement for breweries or distilleries in South Dakota.

Must be filed online; includes updated principal office address and registered agent.

Renewal requires submission of production volume for the prior year and proof of liability insurance.

Renewal requires submission of production volume for the prior year and proof of liability insurance.

Includes total barrels produced, sold, and destroyed. Must be filed electronically via TTB’s e‑Filing system.

Same Form 5000‑24 used for breweries and distilleries.

Tax rates: $3.00 per barrel of beer (≥ 31 gal) and $13.00 per proof‑gallon of distilled spirits.

Applies to all retail sales of alcoholic beverages and any other taxable goods.

Based on gallons of beer and proof‑gallons of spirits produced/sold. Must reconcile with TTB filings.

South Dakota has no state corporate income tax or personal income tax, so no registration or filing is required.

All employers with employees performing services in South Dakota must register for UI.

Quarterly wage reports are submitted electronically via the SDUI Online portal.

All breweries and distilleries must obtain an Excise Tax Permit before any taxable activity.

Beer is taxed at a flat per‑gallon rate; the return must include total gallons produced, sold, or transferred.

Spirits are taxed on proof‑gallons; the return must report proof‑gallons produced, sold, or transferred.

All businesses operating in Sioux Falls, including breweries and distilleries, must obtain an annual business license regardless of activity type.

Rapid City requires an annual business license for all entities conducting business within city limits, including alcohol manufacturers.

Only applicable where the local municipality has adopted the state tourism tax; many South Dakota jurisdictions have not adopted it.

Required for all businesses; breweries/distilleries fall under general commercial license. Specific alcohol production regulated at state level.

Must verify property zoned LI (Light Industrial) or equivalent; conditional use permit may be needed for alcohol production.

LLC may elect corporate or partnership treatment.

Required if expected tax liability > $500.

Report wages and UI contributions.

Proof of coverage must be kept on site.

Includes Minimum Wage, OSHA, EEOC, and other required posters.

Includes SD Minimum Wage, Workers’ Compensation, Unemployment Insurance notices.

Requires a Food Service Permit.

Includes verification of fire suppression systems, exits, and hazardous material storage.

Records must be available for TTB audit.

Although not filed with the state, minutes are required for internal governance.

Includes mechanical, plumbing, electrical sub-permits. Brewery equipment installation often triggers review.

NFPA 1 required for distilleries due to alcohol production/storage; includes hazardous materials permit.

Comply with UDO Article 13; wall signs limited to 1.5 sq ft per linear ft of building frontage.

Brewpubs/taprooms serving flights or food require plan review and inspections per SD Admin R. 44:02.

Required for monitored systems; excessive false alarms lead to suspension.

Verifies zoning, building, fire code compliance; assembly occupancy for taprooms.

All businesses; alcohol manufacturing may require additional review.

AG (Agricultural) or I-1 zoning typically required; public hearing for conditional use.

Sole proprietors with no employees are exempt. Owners who are also employees may elect exemption, but most businesses elect coverage to avoid personal liability.

South Dakota Statutes §35‑5‑2 require a $10,000 surety bond for any alcoholic‑beverage manufacturing license. The bond amount may be increased by the ABC Division based on production volume.

South Dakota ABC requires a minimum of $1,000,000 coverage per occurrence for bodily injury and property damage arising from the sale or service of alcoholic beverages.

South Dakota law requires minimum liability limits of $25,000 per person, $50,000 per accident for bodily injury, and $10,000 for property damage (SD Codified Laws §§31‑22‑1 et seq.).

South Dakota law does not mandate general liability insurance for all businesses, but the ABC Division requires a minimum $500,000 general liability policy for alcohol manufacturers to protect the public and the state.