Hotel / Motel Permits & Licenses in Sioux Falls, SD

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

Applies to all LLCs. Filed online or by mail.

Required for all hotels/motels renting transient accommodations (less than 30 consecutive days). Monthly returns and payments due.

Required for all retail sales including hotel rooms (taxable unless exempt), food/beverages, etc. Monthly/quarterly filing based on revenue.

Applies only if using DBA. Renewal every 5 years for $10.

Rates and requirements set by local ordinance; DOR collects for participating cities. Check specific city clerk for list.

Quarterly wage reports and contributions required. New employers register online.

All businesses that make taxable sales, including lodging charges, must register for a sales tax permit.

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South Dakota does not have a state personal income tax, but employers must withhold the state’s 0 % income tax and remit the federal withholding.

Even though the state income tax rate is 0 %, filing is required to report the withholding and to maintain compliance.

All employers in South Dakota must register for UI and pay quarterly contributions based on taxable wages.

UI tax rates are assigned by the state and applied to the first $27,500 of each employee’s wages (2024 rate).

The privilege tax is based on gross receipts; hotels typically fall in the $75‑$150 range.

The return must report gross receipts for the prior year to calculate the privilege tax.

Required for all businesses including hotels/motels. Sioux Falls Municipal Code Sec. 15-1. Specific to city of operation.

South Dakota counties generally do not require general business licenses; handled at city level. Confirmed via county auditor sites.

South Dakota ABC regulations (SD Codified Laws § 35‑31‑1 et seq.) require all licensees to maintain liability insurance covering bodily injury, property damage, and liquor‑related claims.

While South Dakota does not impose a statutory general‑liability insurance requirement, many lenders, landlords, and municipal licensing authorities require proof of coverage.

Professional liability is generally not mandated for hotels/motels unless the business provides specialized consulting services.

Only required if the hotel sells tangible goods directly to guests (e.g., retail items, food products).

Required for any LLC that has employees, more than one member, or elects to be taxed as a corporation.

Single‑member LLCs report income on Schedule C of the owner’s Form 1040. Multi‑member LLCs file Form 1065 and issue Schedule K‑1 to members.

Employers must also file Form 940 annually for FUTA.

Hotels are covered under General Industry standards (29 CFR 1910).

Includes accessible guest rooms, common areas, signage, and service counters. Requires a written accessibility plan for new construction or major remodels.

All HVAC service must be performed by EPA‑certified technicians; periodic leak inspections required.

Often administered by the South Dakota Department of Environment and Natural Resources, but federal NPDES regulations apply.

Includes compliance with the Children’s Online Privacy Protection Act (COPPA) if collecting data from children under 13.

Hotels typically allowed in C-3/C-4 zones. Requires zoning verification letter. Sioux Falls Code of Ordinances Title 11.

Adopts 2021 International Building Code. Required for structural changes in hotels.

Regulated under Zoning Ordinance Sec. 11-11. Hotels often need monument/pylon signs.

Requires NFPA 101 compliance, sprinklers, exits. Sioux Falls Fire Code based on IFC 2021.

Confirms zoning, building, fire compliance. Required for all hotels.

Local health depts (e.g., Sioux Falls) enforce state lodging standards ARSD 44:12. Local permit required.

NFPA 72 compliance. Required for transient occupancy.

Zoning Table 11-4: Hotels require specific parking ratios. Traffic study if >100 rooms.

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

The bond guarantees payment of lodging tax, penalties, and interest. A cash deposit may be used in lieu of a surety bond.

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

FUTA tax is 0.6% on the first $7,000 of each employee’s wages after state credits.

Postings must be in a conspicuous place where employees can read them.

Includes minimum wage, workers’ compensation, unemployment insurance, and anti‑discrimination notices.

Electronic records are acceptable if they are accurate and accessible.

Records may be requested during a state tax audit or lodging‑tax compliance review.

Report must include total room nights, taxable revenue, and tax collected.

Most hotels rely on local licensing; state licensing is only needed for certain regulated activities.

South Dakota follows the federal minimum wage ($7.25/hr as of 2024).

Many hotels meet the employee threshold; must maintain FMLA policies.

State liquor license also required; ATF permit covers federal aspects such as record‑keeping and reporting.

If shuttle vehicles are under 10,000 lbs GVWR and carry ≤9 passengers, may be exempt; verify size/usage.

No federal license needed for typical Wi‑Fi; ensure equipment complies with FCC Part 15.

Filing can be completed online via the Secretary of State’s portal. The report updates the LLC’s registered agent and address information.

All hotels/motels operating within city limits must obtain a municipal business license. Check the specific city’s ordinance for exact due date.

Renewal requires proof of current fire and health inspections and proof of workers’ compensation coverage.

Lodging tax is collected in addition to the state sales tax; rates vary by municipality.

Employers must also submit wage reports electronically via the SD UI portal.

Proof of coverage (certificate of insurance) must be kept on file and available for inspection.

Requires proof of responsible beverage service training for staff.

Includes accessible rooms, signage, and service areas.

The health permit must be displayed at the point of food service.

Inspection includes fire alarm systems, sprinkler systems, egress routes, and fire extinguishers.

Each member receives a Schedule K‑1 for reporting on their personal returns.

Requires filing Form 2553 to elect S‑corp status.

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