If you plan to sell taxable goods or services in South Dakota, you’ll need a South Dakota sales tax license—also called a seller’s permit. This license allows your business to legally collect and remit sales tax to the South Dakota Department of Revenue. Remote sellers must also register if they exceed the state’s economic nexus threshold ($100,000 or 200 transactions). The application is completed online through the My Tax Account portal.
For businesses managing sales in multiple states, Hands Off Sales Tax (HOST) offers expert help with registrations, filings, and ongoing compliance—making it easier to stay on top of sales tax requirements across the board.
Who Needs a Sales Tax License in South Dakota
Before registering, it’s critical to understand whether your business is required to hold a South Dakota sales tax license—also known as a seller’s permit—via the state’s streamlined MTA portal.
Physical Nexus: Presence Triggers Licensing
You must register if your business has physical presence in South Dakota, including:
- A retail store, office, warehouse, or storage location
- Employees or sales representatives working within the state
- Storing inventory in SD fulfillment centers or third‑party warehouses
Economic Nexus Thresholds
Even without physical presence, South Dakota mandates licensing if you meet or exceed economic thresholds:
- $100,000 in total gross revenue from sales delivered into South Dakota in the current or previous year
- Previously, South Dakota also had a 200-transaction rule, but that was removed effective mid‑2023; now, only the monetary threshold applies
Important: Sales through marketplace facilitators are included when calculating nexus, even if those platforms collect and remit tax on your behalf.
Marketplace Facilitator Rules
If you sell through marketplaces like Amazon, Etsy, or Walmart, note:
- Platform providers must collect and remit SD sales tax if they meet the thresholds.
- You may be exempt from registration on those channels—but only if all your SD sales occur through a compliant marketplace. Otherwise, any direct sales (e.g. via your website) will require separate registration.
Summary Table
| Nexus Type | Threshold / Condition | Requires SD License? |
| Physical Presence | Any in‑state operations or inventory | Yes |
| Economic Nexus | ≥ $100K SD sales/year | Yes |
| Marketplace Only | All sales via facilitator | Possibly exempt |
| Mixed Sales | Direct + marketplace sales | Yes* |
* If you have any direct sales outside the facilitator, you’ll still need an SD license even if a marketplace collects tax.
Whether you’re an online retailer or drop‑shipper, knowing where nexus applies ensures you stay compliant with South Dakota rules—and avoid back taxes or fines.
Preparing for Registration
Knowing what information you’ll need ahead of time makes the South Dakota sales tax license process faster and smoother:
What You’ll Need
Gather the following details before you begin:
- Federal Tax ID (EIN) or Social Security Number (SSN) if you’re a solo proprietor
- Business Structure: e.g. LLC, corporation, sole proprietor
- NAICS Code: Use the industry classification that matches your business
- Start Date: When you began (or expect to begin) engaging in taxable sales in South Dakota
- Estimated Gross Sales: Project monthly or annual sales to determine filing frequency
- Banking Information: Required if you choose ACH for electronic payments or refunds
You’ll also enter owner or officer details, business address, and description of what you sell (including whether you’re selling tangible goods, digital products, or taxable services).
Fees and Deposit Details
- No license application fee: South Dakota does not charge for initial registration
- Prepaid liability estimate: After approval, the state may require an estimated tax deposit based on your projected sales
Having this information ready ensures you’re prepared to register—and helps avoid delays or follow-up inquiries from the South Dakota Department of Revenue.
Step‑by‑Step: Applying via South Dakota MTA Portal
Starting your business’s South Dakota sales tax license application is straightforward—and getting your documents ready in advance helps you breeze through the process without friction.
1. Create Your MTA Account
- Visit the South Dakota Tax License Application portal.
- Choose to create an account, which lets you save and track your application.
- After entering your email and creating a password, you’ll receive a two-factor authentication code via SMS or email for secure access.
2. Select the Correct License
- Once logged in, click “Apply for Business Tax License.”
- Choose Sales Tax License (ST‑1 Account) from the options list.
3. Complete the Application
You’ll be prompted to enter the following information:
- Legal business details (name, structure, address, EIN/SSN)
- Sales nexus info (physical presence or economic threshold status)
- Filing frequency preference (monthly, quarterly, annually) based on your estimated gross sales
- ACH/bank account info for electronic payments or refunds
4. Review & Submit
- Double-check all inputs to ensure accuracy.
- Submit the application electronically. Note that the portal does not charge any application fees.
5. What Happens After Submission
- A representative from the South Dakota Department of Revenue may contact you to verify the information. Expect to receive your account number via email soon after confirmation.
- In most cases, license issuance is immediate or completed within one business day. You’ll also get a printed permit mailed to your business address within 7–10 business days.
Once completed, you can access your license details anytime within the portal—so you’re ready to begin collecting sales tax and filing returns on schedule.
Post‑Registration: What You Need to Know
After completing the application for your South Dakota sales tax license through the MTA portal, here’s what comes next to ensure you stay compliant:
Where to Find Your License Number
Once approved, your Sales Tax License (ST-1 Account) number will be visible in your My Tax Account (MTA) dashboard under “My License.” This unique number is required for filing returns, filing exemption certifications, and all correspondence with the Department of Revenue.
Assigned Filing Frequency
South Dakota assigns your filing cadence based on your estimated liability (typically informed by your projected gross sales):
- Monthly: Default for most new businesses.
- Quarterly or Annual: Assigned only if your average liability is low.
Due Dates & Penalties
- Tax Return Filing Deadline: By the 20th day of the month following your reporting period (e.g., January sales → February 20).
- Payment (ACH or check): Due by the 25th of the same month.
- If the deadline falls on a weekend or legal holiday, it’s automatically extended to the next business day.
Missed returns or payments incur a penalty of 10% of tax due (minimum $10) and interest accumulation. Prompt and consistent compliance helps avoid cumulative charges.
Ongoing Compliance Best Practices
After registering for a South Dakota sales tax license, staying compliant means more than just submitting timely payments. It requires active upkeep of your account, even during periods with no activity.
File Zero-Returns—Always
Even if you had no taxable sales during a filing period, you’re still required to file a zero-return by the due date. Missing a return—even with no tax due—can result in penalties. This applies whether you file monthly, quarterly, or annually.
Keep Your Account Information Updated
You can easily update your business info through the portal. Common updates include:
- Business address changes
- Ownership or structure changes
- Adding/removing business locations or tax licenses
To make changes, navigate to your license dashboard and select the “Update Account” option.
Closing Your License When Done
If you sell or close your business, or no longer have nexus in South Dakota, submit a license cancellation request via the MTA portal. Be sure to file any outstanding returns before requesting closure to avoid penalties or future assessments.
Common Pitfalls & Mistakes
Even experienced sellers can make costly errors when handling South Dakota sales tax licensing. Here are the most common missteps to avoid.
Delaying Registration After Nexus Is Triggered
South Dakota enforces one of the strictest post-Wayfair thresholds: just $100,000 in gross sales or 200 transactions in the previous or current calendar year. Once you cross that threshold, you’re required to register immediately—delays can lead to penalties and backdated liabilities.
Choosing the Wrong Filing Frequency
When registering, you’re asked to estimate your tax liability to determine filing frequency. Underestimating may result in more frequent filings than necessary, or worse—missed deadlines.
Missing Marketplace Facilitator Requirements
If you sell through platforms like Amazon or Etsy, South Dakota considers them marketplace facilitators, which are responsible for collecting and remitting tax. However, you may still need to register if you also make direct sales.
Let HOST Simplify Your South Dakota Sales Tax Compliance
Managing sales tax obligations across states—including South Dakota—can quickly become a drain on your time and focus. That’s where HOST (Hands Off Sales Tax) comes in. As a trusted partner for e-commerce and multi-channel sellers, HOST offers end-to-end sales tax compliance services tailored to your business needs.
Core Services Include:
- Sales Tax Registration
HOST handles your South Dakota sales tax license application and any other states where you’ve triggered nexus. - Filing & Remittance
We manage monthly, quarterly, or annual filings through the South Dakota MTA portal and ensure accurate payments and timely submissions. - Nexus Monitoring & Risk Alerts
Stay ahead of economic thresholds with automated tracking so you know exactly when it’s time to register. - Resale Certificate Generation with ResaleCertify
If you purchase goods for resale, our proprietary platform helps you generate valid resale certificates. - Audit Defense & Notice Handling
From surprise audits to tax notices, HOST steps in with full-service representation.
Whether you’re a remote seller or a physical business operating in South Dakota, HOST ensures you stay compliant without lifting a finger.
Conclusion: Stay Compliant Without the Guesswork
Getting a South Dakota sales tax license is just the beginning—ongoing compliance, accurate filings, and staying ahead of nexus obligations require careful attention. Whether you’re registering for the first time or expanding across state lines, knowing the process can help you avoid costly mistakes. HOST is here to help streamline that journey.
From registrations and filings to audit support and resale certificate tools, HOST is your trusted partner for stress-free, fully managed sales tax compliance. Reach out to HOST today to make sure your business is compliant, protected, and free to grow.
Frequently Asked Questions
1. How do I apply for a South Dakota sales tax license?
You can apply online through the South Dakota Department of Revenue’s MTA (MyTaxAccount) portal. The application process involves creating an account, entering business and nexus details, selecting your filing frequency, and submitting electronically.
2. Is there a fee for the South Dakota sales tax license?
No, South Dakota does not charge a fee to apply for a sales tax license. However, some businesses may be required to make a prepayment based on expected tax liability.
3. What is South Dakota’s economic nexus threshold?
If your gross sales into South Dakota exceed $100,000 or if you make 200 or more separate transactions in the current or previous calendar year, you are required to register and collect sales tax.
4. When are sales tax returns due in South Dakota?
Returns are typically due on the 25th of the month following the reporting period. The Department assigns monthly, quarterly, or annual filing frequencies based on your tax liability.
5. Do I need to file a return if I had no sales?
Yes, South Dakota requires businesses to file zero-returns even if they did not collect or owe any sales tax for the period. Failure to file can result in penalties.
