Freelance / Consulting Permits & Licenses in Brookings, SD

South Dakota has neither a personal nor a corporate income tax. No state income tax registration or filing is required for an LLC.

Required for all LLCs. Annual report required separately (see below).

Required for all active LLCs to maintain good standing.

Renewal required every 5 years for $10.

Freelance/consulting typically exempt unless selling products. Monthly/quarterly returns required if applicable.

General freelance/consulting (non-construction) does not require.

South Dakota generally does not tax professional consulting services. Register only if you will sell taxable goods or taxable services defined by the SD Dept. of Revenue.

South Dakota imposes a flat 0 % state income tax, but employers must still register for withholding to remit any applicable local taxes and to file the required quarterly returns.

Even though SD has no state income tax, the withholding return must be filed to report wages and any local taxes.

UI tax is based on taxable wages; new employers are assigned a standard UI tax rate for the first three years.

Employers must file UI Wage Report (Form UI‑1) each quarter.

Most pure consulting firms without handling chemicals are exempt.

Even consulting firms that cold‑call prospective clients must comply.

|

|

|

|

|

|

|

|

|

|

|

|

All businesses, including LLCs providing consulting services, must obtain this license regardless of tax status.

Consulting firms are required to obtain a business license; the fee schedule is published on the city’s website.

Most consulting services are non‑taxable, but if the LLC sells taxable goods, the local option tax must be collected and remitted.

Professional services like consulting typically exempt unless retail/public-facing; verify with city clerk

County confirms no general business license for service businesses; zoning approval may be needed separately

Allowed if no client visits, <25% home used, no exterior changes; Sioux Falls Rev. Ords. Ch. 11.05

Professional offices allowed with limits on employees/traffic

Home occupations permitted in AG/RR zones with conditions; contact Planning at 605-394-6618

Home occupations prohibited from exterior signs; Sioux Falls Rev. Ords. Ch. 11.30

Not typically required for standard freelance consulting setup

Home offices exempt unless assembly occupancy; IFC 2018 adopted

Required for monitored systems; home offices follow residential rates

|

|

|

|

|

|

|

Even single‑member LLCs often obtain an EIN for banking and tax filing purposes.

A single‑member LLC is treated as a sole proprietorship for federal tax purposes unless it elects corporate taxation.

Each member receives a Schedule K‑1 to report on their personal return.

Required for both single‑member and multi‑member LLCs where members have self‑employment income.

Freelancers without employees are generally exempt, but if the LLC hires staff, OSHA standards apply.

Even virtual consulting businesses should ensure website and digital content are accessible.

Includes requirements for truth in advertising, endorsements, and disclosures (e.g., “sponsored” content).

Even for remote employees, Form I‑9 must be completed.

Consultants who are independent contractors are not covered; proper classification is essential.

Even a consulting LLC that hires subcontractors must issue 1099‑NEC.

Reports withheld income tax, Social Security, and Medicare taxes.