How to become a general contractor in South Dakota

Journeyman level Licensed by cities or counties, not the state What's a journeyman?

The license pathway in South Dakota

1. 1

   Construction worker or apprentice (no license)

   You don't need a license to work for a builder. South Dakota's Department of Labor and Regulation says carpenter jobs require at least a high school diploma and that a registered apprenticeship is another way to prepare. [3][8]

2. 2

   Contractor's excise tax license (state)

   • No fee

   Required before you start work if you contract for construction services or install or repair fixtures on real property. It is a tax license: you collect and file the 2% contractor's excise tax. [1][2]

3. 3

   Residential Building Contractor (Sioux Falls)

   • Construction Supervisor exam: open book, 50 questions, 80% to pass, $75
   • License fees plus $20,000 compliance bond and $300,000 liability insurance
   • Every 3 years; 1 hour CE per cycle

   Required for any residential work that needs a building permit in Sioux Falls, from decks and roofing to basements and new homes. A Construction Supervisor passes the exam, then applies within 90 days with the bond and insurance. [3]

Is there a state contractor license in South Dakota?

The statewide requirement we verified is the Department of Revenue's contractor's excise tax license. Anyone who enters into a contract for construction services, or performs services that include building, installing or repairing a fixture to real property, must have it. That includes repair and remodeling. You must be licensed before starting work, regardless of how much you earn, and there is no fee. The tax is 2% of gross receipts on construction projects.

This is a tax license, not a test of skills. Sioux Falls tells contractors that a state contractor's license is "probably" this excise tax license and doesn't replace the city's building license.

Electrical and plumbing work need their own state licenses from the Electrical Commission and the Plumbing Commission; see our South Dakota electrician and plumber pages. [1][2][3][4][5]

Sioux Falls Residential Building Contractor license

Sioux Falls requires a Residential Building Contractor's license of all contractors working on one- and two-family homes and townhomes in the city, for any work that needs a building permit. Examples include sheds and decks, shingles, sheetrock replacement, exterior doors and windows, basement finishing and new construction. There are no separate roofing, siding or window licenses, and handyman work that needs a permit needs the license. Homeowners don't need a license but must get permits.

First, the person who will be the Construction Supervisor passes an open-book exam based on the city's Residential Code Handbook: 50 multiple-choice questions, 80% to pass, $75, offered monthly; you can retake it every 30 days. Within 90 days of passing, you submit a $20,000 compliance bond made out to the city, at least $300,000 in general liability insurance and the license fees.

Licenses renew every 3 years, and Construction Supervisors need at least one hour of continuing education per cycle. Sioux Falls doesn't accept licenses from other states. Call licensing at (605) 367-8672. [3]

Commercial work and other trades

Sioux Falls doesn't license general contractors on commercial projects; instead, each project goes through plan review and permits. Apartment buildings count as commercial. Electrical, plumbing and mechanical (HVAC) work each need their own city license and exam, and electrical and plumbing also need a state license first. A residential building contractor may not do electrical, plumbing or mechanical work without those licenses. [3][6]

Rapid City and other cities

Other cities set their own rules. Rapid City's Building Services Division posts a Contractor License Application, a renewal form and a list of currently licensed contractors on its Building Services page; ask the division at (605) 394-4120 which license your work needs. In any other city, check with the local building department before you take on work. [7]

Training routes in South Dakota

South Dakota's Department of Labor and Regulation says carpenter jobs require at least a high school diploma and that skill matters most; a building trades program at a technical college makes you more competitive, and a registered apprenticeship is another option. Start Today SD connects job seekers with sponsoring employers. Western Dakota Technical College's Construction Technology program covers framing, concrete, masonry and print reading, with an internship. More in our carpenter apprenticeship guide. [8][9][10]

Steps to get licensed in South Dakota

1. Get hired or start an apprenticeship

   Work for a builder, remodeler or roofer, or find a registered apprenticeship through Start Today SD. No license is needed to work for a contractor. [3][8][9]

2. Get the state contractor's excise tax license

   Before you take your own construction contracts, apply online with the Department of Revenue. There is no fee, and you must be licensed before you start work. [1][2]

3. Pass the Sioux Falls Construction Supervisor exam

   To do residential work in Sioux Falls, apply for the open-book exam ($75, offered monthly) and study the Residential Code Handbook you receive. You need 80%. [3]

4. File bond, insurance and license application

   Within 90 days of passing, submit a $20,000 compliance bond, proof of at least $300,000 general liability insurance and the license fees. [3]

5. Renew and confirm local rules

   Sioux Falls licenses renew every 3 years with at least 1 hour of continuing education. If you'll work in another city, confirm its rules with that city's building department. [3]

Where to get the hours

Programs that train general contractors in or for South Dakota, from their own official pages. Listed by type, not ranked.

• State program

  Start Today SD (state registered apprenticeship program)

  The Department of Labor and Regulation's registered apprenticeship program; it connects job seekers with employers that sponsor apprenticeships and points you to local Job Service offices. [8][9][11]

• School

  Western Dakota Technical College Construction Technology

  A Rapid City program covering framing, cabinet-making, concrete and masonry, steel frame and modular construction and print reading, with an internship. [10]

Licensed in another state?

Questions people ask