Starting a cleaning business in South Dakota typically costs $1,000 to $5,000 depending on your business structure and insurance needs. Each state has different rules for registration, taxes, and workers' compensation. This guide covers everything you need to start a cleaning business in South Dakota, including filing fees, licenses, insurance, labor laws, and local tips.
Why Start a Cleaning Business in South Dakota?
South Dakota is one of the most business-friendly states in the country. There is no state income tax. You keep more of what you earn.
Sioux Falls is the largest city and growing fast. Over 200,000 people live in the metro area. New homes and businesses create strong demand for cleaning.
The tourism industry around the Black Hills and Mount Rushmore adds seasonal cleaning demand. Hotels, vacation rentals, and event spaces all need regular cleaning.
Read our general How to Start a Cleaning Business guide first. This South Dakota guide adds the state-specific steps you need on top of those basics.
How Do You Choose a Business Structure?
You need to decide how to set up your business. South Dakota offers two main choices for cleaning companies.
Sole Proprietorship
This is the simplest way to start. You do not need to file with the state. South Dakota considers you a sole owner right away.
If you want a business name, file a trade name with the Secretary of State. The fee is $10.
The downside is you have no personal protection. If something goes wrong, your personal savings are at risk.
Limited Liability Company
This is the better choice for most cleaning businesses. It keeps your personal money separate from your business. If a client sues, your personal savings stay protected.
To form one in South Dakota, file Articles of Organization. You do this online through the Secretary of State website. The filing fee is $150.
South Dakota requires an annual report every year. The fee is $50. This is due on the first day of the anniversary month of your formation.
Choose a limited liability company. The $150 filing fee is affordable. You enter people's homes every day — the liability protection is worth the cost.
- sdsos.gov — File your Articles of Organization for a limited liability company
How Do You Get an Employer Identification Number and Tax Accounts?
An Employer Identification Number is a free number from the federal government. You need it to open a business bank account. You also need it to file taxes and hire workers.
Apply for free at the Internal Revenue Service website. You get your number right away when you apply online.
No State Income Tax
South Dakota has no state income tax. This is a huge advantage for business owners. You keep every dollar of profit after federal taxes.
You still pay federal income tax and self-employment tax. But no state return means less paperwork and more money in your pocket.
Cleaning Services and Sales Tax
South Dakota has a broad sales tax. Cleaning services are taxable. The state rate is 4.5 percent. Local taxes can add up to 2 percent more.
Sioux Falls adds a 2 percent local tax for a total of 6.5 percent. Rapid City adds 2 percent for 6.5 percent total. You must collect sales tax from your clients on every job.
Get a free sales tax license before you start charging clients.
No income tax means you keep more profit. But you must still collect sales tax on cleaning services. Get your sales tax license before your first job.
- irs.gov — Apply for a free Employer Identification Number (never pay for this)
- dor.sd.gov — South Dakota Department of Revenue — sales tax license and filing
What Licenses and Permits Do You Need?
South Dakota has no statewide business license. There is also no special cleaning license at the state level. This keeps things simple.
However, cities like Sioux Falls and Rapid City require local business licenses. Requirements vary by where you are located.
Local Business Licenses
Sioux Falls requires a city business license. Rapid City may require local permits. Check with your city finance office for local rules.
Fees are usually low. Most range from $25 to $100 per year.
Sales Tax License
Since cleaning services are taxable, you need a sales tax license. This is free from the South Dakota Department of Revenue. Apply online before you start charging clients.
- dor.sd.gov — Free sales tax license application
What Insurance Do You Need?
Insurance protects you from one bad day ending your business. South Dakota requires some types of coverage. Here is what you need.
- General liability insurance — Covers property damage and injuries at a client's home or office. Costs $400 to $1,200 per year. Every cleaning business needs this
- Workers' compensation insurance — Required in South Dakota for all employers with one or more employees. You must get coverage before your first hire starts
- Surety bond — Protects clients if an employee steals something. Not required but highly recommended. Costs $100 to $500 per year
- Commercial auto insurance — Needed if you use a vehicle for business. South Dakota requires minimum liability coverage on all vehicles
For more details on each type of coverage, read our Cleaning Business Insurance Guide.
Workers' compensation is required in South Dakota for even one employee. Get coverage from a private insurance carrier before your first worker starts.
What Are South Dakota Labor Laws?
If you plan to hire workers, you need to follow South Dakota labor laws from day one.
Minimum Wage
South Dakota's minimum wage is $11.20 per hour. This is higher than the federal rate. It adjusts each year based on the cost of living.
Most cleaning businesses pay $13 to $18 per hour to attract good workers. The higher minimum wage means your labor costs are moderate.
Worker Classification
South Dakota follows federal standards for worker classification. Cleaning workers who follow your schedule usually count as employees. Classifying them wrong leads to fines.
When in doubt, hire them as employees.
Unemployment Insurance
When you hire employees, register for unemployment insurance. Register through the South Dakota Department of Labor. New employers pay a starting rate.
- dlr.sd.gov — South Dakota Department of Labor — unemployment insurance and employer information
What Safety Rules Apply?
South Dakota uses federal workplace safety rules. The state does not have its own safety agency. Federal offices in South Dakota oversee workplace safety.
Hazard Communication
You must keep Safety Data Sheets for every cleaning chemical you use. Train your workers on each product they handle. Show them what to do if a spill happens.
Winter Weather Safety
South Dakota winters are long and harsh. Blizzards and ice storms happen often. Workers travel between jobs in dangerous conditions.
Keep emergency kits in vehicles. Have winter tires and warm clothing ready. Plan for days when travel is not safe.
How Do You Set Cleaning Prices in South Dakota?
South Dakota has a moderate cost of living. Sioux Falls supports good rates. Smaller towns need lower prices. Tourism areas can charge seasonal premiums.
Typical pricing ranges in South Dakota:
- Home cleaning (hourly) — $22 to $45 per hour
- Home cleaning (flat rate) — $100 to $260 for a standard 3-bedroom home
- Deep cleaning — $180 to $400 depending on home size
- Move-in or move-out cleaning — $200 to $450
- Office cleaning — $0.05 to $0.12 per square foot
- Vacation rental turnover — $100 to $300 per unit (Black Hills area)
Remember to add sales tax on top of your prices. Use our Price Calculator to find the right rate for your area.
For detailed city-by-city pricing data, see our full Cleaning Business Prices in South Dakota guide.
What Cleaning Niches Are Profitable in South Dakota?
South Dakota has cleaning niches that do especially well. Tourism and a growing economy create many options.
Tourism and Vacation Rental Cleaning
The Black Hills draw millions of visitors each year. Hotels, cabins, and vacation rentals need turnover cleaning. The Sturgis motorcycle rally brings huge demand every August.
Sioux Falls Suburban Cleaning
Sioux Falls is the largest city and growing fast. New homes in the suburbs create strong demand. Dual-income families need regular cleaning help.
Military Base Housing
Ellsworth Air Force Base is near Rapid City. Military families move often and need cleaning. This creates steady, repeat work year-round.
College Town Cleaning
Brookings is home to South Dakota State University. Vermillion has the University of South Dakota. Students need move-out cleaning every semester.
Casino and Hospitality Cleaning
Deadwood has many casinos and hotels. These businesses need regular cleaning. Commercial contracts with casinos can provide stable, long-term income.
The Sturgis motorcycle rally brings over 500,000 visitors to the Black Hills each August. Hotels and rentals need deep cleaning before and after. This one event can generate weeks of premium-rate work.
How Do You Market a Cleaning Business in South Dakota?
Getting clients in South Dakota follows the same steps as most states. Here are strategies that work well.
Google Business Profile
Set up your profile with your city, services, and photos. Ask every happy client for a Google review. Most people search online first.
Community Connections
South Dakota is a close-knit state. Word of mouth is powerful here. Join your local chamber of commerce. Sponsor community events.
Tourism Industry Partnerships
Connect with vacation rental owners in the Black Hills. Partner with property management companies in Rapid City. Offer reliable turnover cleaning services.
For a complete marketing plan, read our Marketing Your Cleaning Business guide and How to Get Cleaning Clients Fast.
How Much Does It Cost to Start in South Dakota?
South Dakota is affordable to start a cleaning business. No income tax and moderate fees help keep costs down.
- Limited liability company filing — $150 (one-time, through the Secretary of State)
- Annual report — $50 per year
- Trade name — $10 (if using a different business name)
- Sales tax license — Free (required since cleaning is taxable)
- Local business license — $25 to $100 per year (varies by city)
- General liability insurance — $400 to $1,200 per year
- Workers' compensation insurance — Required once you hire (rates vary)
- Surety bond — $100 to $500 per year (recommended)
- Cleaning supplies and equipment — $200 to $500 to start
- Marketing (initial) — $100 to $500
What Is on Your South Dakota Startup Checklist?
Follow these steps in order. Complete each one before moving on.
- Choose your business structure — Form a limited liability company at sdsos.gov ($150)
- Get an Employer Identification Number — Apply free at irs.gov
- Get a sales tax license — Apply free at dor.sd.gov
- Open a business bank account — Keep personal and business money separate
- Get your local business license — Check your city requirements
- Buy general liability insurance — Get at least $1 million in coverage
- Buy cleaning supplies — Start with the basics and upgrade as you grow
- Set your prices — Use our Price Calculator and factor in South Dakota sales tax
- Set up your Google Business Profile — This is your most important marketing tool
- Book your first clients — Tell friends, join your chamber of commerce, connect with vacation rental owners
- Get workers' compensation before hiring — Required for even one employee
- Register for unemployment insurance — Required before your first employee starts
What Are the Best Tips for South Dakota?
Here are practical tips for success in South Dakota.
- Take advantage of no income tax — South Dakota lets you keep more profit. Reinvest the savings into growing your business
- Always collect sales tax — Cleaning is taxable in South Dakota. Build it into your quotes so clients know the total upfront
- Target the tourism season — May through September is peak season in the Black Hills. Vacation rental cleaning pays premium rates
- Prepare for the Sturgis rally — Book up your August calendar early. Hotels and rentals pay top dollar for cleaning during the rally
- Prepare for harsh winters — Keep emergency kits in your vehicle. Have a plan for blizzard days
- Serve military families near Ellsworth — Rapid City and Box Elder have steady demand from the base
- File your annual report on time — It is $50 each year. Do not forget or you risk losing your company status
- Use MaidProfit to manage bookings — Track jobs, invoices, and sales tax with one tool
What Are the Guides for Nearby States?
If you serve areas near the South Dakota border, these guides may help.
- North Dakota Guide — Start a cleaning business in North Dakota
- Minnesota Guide — Start a cleaning business in Minnesota
- Iowa Guide — Start a cleaning business in Iowa
- Nebraska Guide — Start a cleaning business in Nebraska
- Wyoming Guide — Start a cleaning business in Wyoming
- Montana Guide — Start a cleaning business in Montana
- North Dakota Cleaning Prices — Hourly rates and city-by-city pricing for North Dakota
- Minnesota Cleaning Prices — Hourly rates and city-by-city pricing for Minnesota
- Iowa Cleaning Prices — Hourly rates and city-by-city pricing for Iowa
- Nebraska Cleaning Prices — Hourly rates and city-by-city pricing for Nebraska
Where Do You Find South Dakota Government Resources?
Here is a complete list of every government website in this guide. Bookmark these for later.
- South Dakota Secretary of State — Register your business and file formation documents
- South Dakota Department of Revenue — Sales tax license and state tax filing
- South Dakota Department of Labor — Unemployment insurance and employer information
- Internal Revenue Service — Free Employer Identification Number application
- Small Business Administration — Free counseling and local assistance for small businesses
What Other Guides Can Help Your Business?
These free guides cover topics every cleaning business owner needs. They work hand-in-hand with this state guide.
- How to Price Cleaning Services — Set profitable rates with flat-rate and hourly formulas
- Cleaning Business Insurance Guide — General liability, bonding, and the coverage you need
- How to Get Cleaning Clients Fast — Fill your schedule with paying clients
- Marketing Your Cleaning Business — Online and offline strategies that bring real results
- Cleaning Business Taxes and Deductions — Every deduction you can claim and how to file
- How to Get Cleaning Contracts — Find and win residential and commercial contracts
- How to Hire and Train Cleaning Staff — Where to find workers and how to keep them
Start Your South Dakota Cleaning Business Today
South Dakota offers no income tax and strong demand for cleaning. Tourism, growing cities, and military bases create real opportunity.
Start by forming your limited liability company. Get your Employer Identification Number and sales tax license. Buy insurance, check local licenses, and set your prices.
Then focus on getting clients through Google and local connections.
The no-income-tax advantage means more profit stays in your pocket. Every successful South Dakota cleaning company started with one owner and one first client. Take action today.