South Dakota Contractor License

Generally, people who want to work as a contractor in South Dakota can obtain their General Contractor License at a local level. Contracting licenses are documents that ensure working with professionals. That is you won’t see someone not experienced simply strolling off the street and onto a large construction site.

Applying for South Dakota Contractor License

Everyone who wants to work as a contractor and the cost of the project exceeds $2,000 must apply for a South Dakota Contractor License.

In general, there are four classes of contractor licensing based on the cost of the project:

• So, if you are going to work with different projects and need a license that has no cost limits you need to apply for Class A License
• If the projects you are working for cost no more than $250.000 you can obtain a Class B License
• A project that cost no more than $120.000 requires you to have Class C License
• And finally, if you need to sign a contract of a project no more than $50.000 you need a Class D License

In fact, the requirements for contractor licenses vary from state to state. So, whenever you want to apply for a contractor license, you must check the state requirements. South Dakota issues the contractor license mainly at a local level. That means you need to check what your jurisdiction requires.

Before you start your application process, have your proof of identity and Social Security Number ready.

Some general requirements for your South Dakota Contractor License

• Whenever you apply for a contractor’s license, the first thing you must submit is your working and studying background. Sure, every county may ask you to fulfill different years of experience and education, but the thing is you must have at least some experience.
• The next step must be to register your business. If you want to work as a company, you must register your business and apply for a business license.
• So, the next step is submitting your contractor’s excise task. You will need to give 2% of your earnings for a year to the state.
• You will need also to take an exam for a contractor’s license
• Finally, you must provide documents or bonds that you can pay the money if you fail or leave the work not finished.

You will also need to submit liability insurance to avoid personal losses and workers insurance if you have any workers.

In South Dakota, General Contractors don’t even need a state license. However, the specialty contractors need some other requirements.

The specialty contractors are mainly working in a particular field. For example, plumbing, lighting, painting, concrete pouring, heating, and cooling systems are what the specialty contractors do.

South Dakota doesn’t have reciprocity with any other state of the U.S.

Whenever you want to verify your contractor’s license you will need to visit the City of Sioux Falls.

Fees for your Contractor License in South Dakota

The license fee in South Dakota varies depending on the class of license you apply for.

• In general, a Class A license costs $450
• You will need to pay $300 for Class B and $225 for Class C
• The class D license fee is $100

In some of the cities in South Dakota, you may be asked to pay an extra annual fee.

Contractor License Renewal in SD

All the contractors in South Dakota must apply and renew their licenses every year not late than March 1. The renewal process is usually supervised by the Secretary of State.

Whenever your expiration date is coming, you must meet the following requirements to renew your license:

• You need to complete the application form
• Then you must provide the insurance certificate. It must include how much you offer for liability coverage
• Finally, you will need to pay the required fees. You can either make a payment at the Secretary of State or pay it via debit or credit card

Fees to renew your license are different for each class.

To renew your Class A License you need to pay $90. Class B License renewal costs $60 and Class C License costs $45.
For a Class D license that is given to a project that costs no more than $120.000, you need to pay $30.

If you don’t renew your license till March 1, the state may require you to pay a penalty fee. Usually, it is from $80 up to $140 based on your license class.

Things you must remember before you apply

Whenever you apply for a South Dakota Contractor License you must also provide the following documents if needed:

• If you, no matter with a partner or alone, have previously applied and were refused to obtain a contractor license you must disclose that fact to the application
• If you have been a plaintiff or defendant in a fraud or misrepresentation action within the last year, you must also provide this information in writing
• Applicants that have proceeded in bankruptcy during the last five years
• You must also disclose in detail if you or your partners are now subject to any judgments, federal or state tax charges
• You will also need to provide documents if you were a subject of condemnation of any assault or crime.