Cleaning Service Permits & Licenses in Brookings, SD

Required for all LLCs. Annual report required separately (see below). Fees current as of 2024.

Required for all active LLCs. Late fee of $1 per day up to $100 max.

Renewal every 5 years for $10. Not required if using exact legal name.

Cleaning services are generally not taxable unless selling products. Register online via MyDOR.

Quarterly tax reports required after registration. Online registration via ESS system.

Register via MyDOR. Monthly/quarterly filing required.

All freestanding/wall signs require permit. Sioux Falls Rev. Ord. 15.56.

Required for occupancy; focuses on hazardous materials storage common in cleaning businesses. Rapid City Fire Code (IFC 2018 adopted).

Registration required to reduce false alarms. Sioux Falls Ordinance 15.72.

Cleaning services in South Dakota are generally not subject to sales tax unless they involve the sale of cleaning supplies or products. If only labor is provided, no sales tax applies. However, if the business sells cleaning products to clients (e.g., as part of a bundled service), registration is required. See SDCL 10-45-2 and DOR guidance.

Employers must withhold state income tax from employee wages. South Dakota does not have a state income tax, but if the business operates in a reciprocal agreement state (e.g., Minnesota), withholding may still apply. This registration is required for reporting and compliance tracking even if no tax is withheld.

Employers must pay state unemployment insurance (SUI) tax if they pay $1,500 or more in wages to employees in a calendar year. New employers are assigned a standard rate (as of 2024: 2.0% on first $14,000 in wages per employee).

Employers must file quarterly wage reports and an annual reconciliation. Failure to file impacts federal unemployment tax credit eligibility.

Filing frequency is assigned by DOR based on expected sales volume. Even if no tax is due, a 'zero return' must be filed.

All LLCs must obtain an EIN regardless of employee status. Sole proprietorships without employees may use SSN, but LLCs are treated as separate entities and require EIN.

South Dakota does not impose a corporate income tax, franchise tax, or gross receipts tax on businesses. This applies to all business types, including LLCs.

Cities such as Sioux Falls (https://www.siouxfalls.org/government/departments/finance/business-license), Rapid City (https://www.rapidcitysd.gov/departments/finance/business-license), and others require an annual business license. Fees and requirements differ. Cleaning services are typically classified under 'service businesses.'

Required for all businesses operating in Sioux Falls; cleaning services classified under general business license. See Sioux Falls Municipal Code Chapter 9.20.

Applies to businesses outside city limits in Minnehaha County (Sioux Falls area); cleaning services require standard registration. Per County Ordinance 2021-003.

Required for home-based businesses; restrictions on storage of cleaning supplies/equipment. Sioux Falls Zoning Ordinance Article IX, Section 90.510.

Must verify zoning allows "business services" (includes cleaning). Rapid City Municipal Code Title 17.50.

Required for any structural changes; cleaning services rarely need unless expanding facilities. Pennington County Ordinance 01-17.

Filing frequency is determined by the amount of tax liability; most small cleaning services file quarterly.

Businesses with larger liabilities may be required to make monthly estimated payments.

Employers must register for UI and file Form UI‑1 each quarter.

Local health depts enforce SD Admin R. 74:29 for hazardous waste. Not typical for standard cleaning services unless industrial.

Confirms code compliance post-inspection. Sioux Falls Code Chapter 15.

South Dakota law (SD Codified Laws §§ 34‑2‑1 to 34‑2‑5) requires all employers with at least one employee to carry workers' compensation insurance or be self‑insured.

South Dakota minimum liability limits: $25,000 per person for bodily injury, $50,000 per accident for bodily injury, and $25,000 per accident for property damage.

South Dakota does not mandate general liability insurance for cleaning services, but many commercial clients and property managers require proof of coverage as a contract condition.

May be required by specific contracts, especially for specialized cleaning (e.g., medical, industrial) where professional errors could cause liability.

South Dakota does not require a license bond or contractor bond for general cleaning services.

Only relevant if the business manufactures or sells cleaning chemicals; not required for a service‑only cleaning operation.

Cleaning services do not serve alcohol; no state requirement for liquor liability coverage.

The EIN is required for payroll, tax reporting, and opening a business bank account.

All employers with employees in South Dakota must maintain workers’ comp coverage.

Other municipalities in South Dakota may have their own licensing requirements.

Form 941 reports federal income tax withheld, Social Security, and Medicare taxes.

FUTA is required for most employers with employees.

LLCs taxed as partnerships file Form 1065; if elected to be taxed as a corporation, file Form 1120.

Required posters include FLSA, OSHA, EEOC, and SD-specific wage & hour notices.

Records include sales invoices, exemption certificates, and tax returns.

Most residential/commercial cleaning services use non‑hazardous products and are exempt.

The health department inspects the client facility, not the cleaning contractor, but the contractor must provide proof of compliance.

Check the specific municipality’s fire code requirements.

LLC members report income on personal returns; the LLC itself files an informational return if taxed as a partnership.

Required for LLCs taxed as partnerships or sole proprietors who have net earnings subject to self‑employment tax.

Requires a written chemical inventory, Safety Data Sheets (SDS) for each product, labeling, and employee training.

Cleaning services typically fall under the general industry classification and are subject to this requirement.

Cleaning companies must ensure that services are offered without discrimination and that any employee accommodations are provided.

Typical cleaning services that use standard commercial cleaners usually do not generate hazardous waste above these thresholds, but if specialty chemicals are used, registration may be required.

Cleaning companies must ensure that all chemicals have up‑to‑date Safety Data Sheets and proper hazard labeling.

All advertising claims (e.g., “green,” “eco‑friendly”) must be substantiated; deceptive practices are prohibited.

Employers must retain I‑9 forms for three years after hire or one year after termination, whichever is later.

Applies to all non‑exempt employees; includes minimum wage, overtime pay, and record‑keeping requirements.

Most small cleaning firms will not meet the employee threshold, but the requirement is noted for completeness.

Most standard cleaning services that do not transport hazardous waste are exempt.

Form 940 (Unemployment Tax) is due annually (January 31) if the employer is subject to FUTA.

All LLCs must file an annual report each year. The filing can be completed online.