Nail Salon Permits & Licenses in Aberdeen, SD

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

Applies to all LLCs. Filed online or by mail.

Required for nail salons as they fall under cosmetology establishments. Must meet facility standards (inspection required). Nail technicians need individual licenses.

Not required if using exact legal name. Valid for 5 years; renewal available.

Nail services are generally nontaxable, but product sales require collection/remittance. Register online via MyDOR.

Requires 400 hours training at approved school, passing exam (written/practical). Applies to each technician, not the business itself.

Nail salon services are classified as taxable ‘personal services’ under SD sales‑use tax law (see SD Dept. of Revenue, Taxable Services List).

|

South Dakota does not have a state income tax, but UI coverage is mandatory for all employers.

Reports are filed electronically through the SD UI Online system.

South Dakota is one of the few states with no corporate or personal income tax; therefore no income‑tax registration or filing is required.

|

|

Most South Dakota counties defer to the state sales‑tax system; confirm with the specific county.

Required for all businesses; nail salons classified under personal services

No general county business license required; state registration suffices. Confirmed no local occupational license for personal services

Verify zoning district allows "personal services" use; home occupation permit available for residences (limited to 25% floor area)

Nail salon home ops restricted; no external signage, limited clients/traffic

Required for salon stations, sinks, ventilation; fee schedule updated 2023

Max sign size 1.5 sq ft per linear ft of building frontage

Local health depts (e.g., Sioux Falls/Eastern SD Public Health) conduct sanitation inspections

Requires extinguishers, exits, no storage in exits (IFC 2021 adopted)

Confirms zoning, building, fire compliance

Not typically required for small nail salons

Rarely required for standard nail salon

Covers medical expenses, wage replacement, and disability benefits for work‑related injuries. Employers may obtain coverage through a private insurer or the State Fund.

State law does not mandate general liability insurance, but it is strongly recommended to protect against third‑party bodily injury and property damage claims.

While not mandated, many nail technicians obtain this coverage to protect against claims of negligent services.

The $5,000 surety bond protects the state and consumers against violations of the Cosmetology Act.

South Dakota minimum liability limits: $25,000 per person, $50,000 per accident for bodily injury, and $10,000 for property damage.

Provides protection against claims of injury or property damage caused by products sold.

Only required for establishments that hold a liquor license; not relevant to nail salons.

All LLCs that have employees, operate as a partnership, or elect corporate tax treatment must obtain an EIN.

Fire extinguisher maintenance and exit signage must meet NFPA standards.

Most nail‑service fees are taxable in SD; verify current taxability on the DOR website.

Report wages and pay the employer’s UI tax; employee contributions are withheld from wages.

Single‑member LLCs are disregarded entities (taxed as sole proprietorship) unless an election is made. Multi‑member LLCs are taxed as partnerships by default.

Even if no FUTA tax is due because of the credit, a Form 941/940 filing may still be required.

Nail salons must develop an Exposure Control Plan, provide Hepatitis B vaccination, and train employees.

All chemicals in the salon must be labeled and SDSs accessible to employees.

Nail salons must follow RCRA requirements for hazardous waste, including proper labeling, storage, and disposal through a certified hazardous waste hauler.

Nail salons are considered “cosmetics establishments” and must ensure that all products used are not adulterated or misbranded.

Claims about nail‑care results, “organic,” or “hypoallergenic” must be supported by competent evidence.

Even part‑time nail technicians are covered unless they qualify for an exemption.

Retain I‑9 for 3 years after hire or 1 year after termination, whichever is later.

Most small nail salons will not meet the 50‑employee threshold, but the requirement is noted for completeness.

There is no federal license specifically required to operate a nail salon. Compliance is limited to the general federal regulations listed above.

The report updates the LLC’s principal office address and registered agent.

Check the specific municipality where the salon operates; many SD cities require a general business license.

Renewal requires proof of 2 hours of continuing education (CE) completed during the prior year.

Approved CE courses are listed on the Board’s website.

Requires an annual health‑department inspection; the permit must be displayed at the salon.

Inspectors verify sanitation, sterilization, and ventilation standards.

Self‑insured employers must file a certificate of self‑insurance.

EIN does not expire, but must be kept current with any changes to business structure.

South Dakota has no state corporate income tax, but federal filing is required.

Include sales receipts, purchase invoices, payroll records, and tax returns.

Include FLSA, OSHA, EEOC, and SD Minimum Wage posters.

Update annually if the state minimum wage changes.