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9 South Dakota Dealer License Requirements
South Dakota Dealer Licenses are issued by the Department of Revenue's Motor Vehicle Division, through its Dealer Licensing Program. This page covers South Dakota's 9 Dealer License types, their requirements, bond size, costs, and how to apply.
Name your Dealership
Your company name is the first step, because you use it through the entire Dealer License process. South Dakota's Dealer application accepts a sole proprietor, partnership, corporation, or limited liability company.
An LLC keeps your business separate from your personal life and adds trust to the name. The application lists the name and address of every partner, LLC member, or corporate officer.
Choose your Dealer License Type
South Dakota issues 9 Dealer License types: 6 under its vehicle dealer chapter, and 3 under their own chapters for boats, mobile and manufactured homes, and snowmobiles. The Vehicle Dealer's License and the Used Vehicle Dealer's License are separate licenses, though the Department's fee page lists them on one line.
| License Type | What It Lets You Do |
|---|---|
| Vehicle Dealer's License | For new-vehicle dealers. Also covers motorcycles, off-road vehicles, trailers of any weight, and low-speed vehicles, with no extra license |
| Used Vehicle Dealer's License | Buy and sell used vehicles. Also covers motorcycles, off-road vehicles, trailers of any weight, and low-speed vehicles, with no extra license |
| Motorcycle and Off-Road Vehicle Dealer's License | Sell motorcycles and off-road vehicles only |
| Trailer Dealer's License | Sell trailers only |
| Emergency Vehicle Dealer's License | Sell emergency vehicles. The one license type that doesn't require a place of business in South Dakota |
| Final Stage Manufacturer Dealer's License | The Dealer License for a final stage manufacturer |
| Boat Dealer LicenseSDCL chapter 32-7B | Sell boats |
| Mobile/Manufactured Home Dealer LicenseSDCL chapter 32-7A | Sell mobile and manufactured homes |
| Snowmobile Dealer LicenseSDCL chapter 32-6C | Sell snowmobiles |
Get your Dealer Bond (Surety Bond)
A South Dakota Vehicle Dealer's or Used Vehicle Dealer's License requires a $25,000 bond, filed with the Department of Revenue (SDCL 32-6B-7). The bond protects customers if you break South Dakota's dealer laws. A $25,000 Dealer Bond costs only $175 a year, after a credit check; for the Used Vehicle Dealer's License it is $187.50.
The bond is valid for the license period and renews with the license. A new-vehicle dealer also files a separate $50,000 warranty bond. It is waived if the dealer has a repair facility and qualified staff in the county for new-vehicle warranties (SDCL 32-6B-9).
The other license types have their own bond amounts:
- Motorcycle and Off-Road Vehicle Dealer's License: $5,000
- Trailer Dealer's License, for trailers over 3,000 pounds: $10,000
- Emergency Vehicle Dealer's License: $10,000
- Boat Dealer License: $20,000
- Mobile/Manufactured Home Dealer License: $25,000
- Snowmobile Dealer License: $5,000
Dealer 101 Insurance Services
Licensed in South Dakota · NPN 22346185
| License Type | You Pay | Bond Amount |
|---|---|---|
| Vehicle Dealer's LicenseSouth Dakota - NEW Motor Vehicle Dealer ($25,000). Credit check required | $175/yearabout $15 a month | $25,000 |
| Used Vehicle Dealer's LicenseSouth Dakota - USED Motor Vehicle Dealer ($25,000). Credit check required | $187.50/yearabout $16 a month | $25,000 |
Get your Dealer Liability Insurance (Public Liability Insurance)
South Dakota requires a public liability insurance policy of at least $300,000 for 3 of its 9 Dealer License types. That is the limit of the policy, not the cost; your insurance agent quotes the price.
Those are the Vehicle Dealer's, Used Vehicle Dealer's, and Motorcycle and Off-Road Vehicle Dealer's Licenses. You certify the policy on the application (SDCL 32-6B-6(16)) and again at each renewal. Trailer, snowmobile, mobile home, and boat dealers are not required to carry it.
Set up your Dealer Office (Principal Place of Business)
A South Dakota Dealer License under the vehicle dealer chapter requires a principal place of business: an enclosed commercial structure in the state (SDCL 32-6B-2). It must be open to the public at least 20 hours a week, between 8:00 a.m. and 8:00 p.m.
The application makes you certify that the location “provides an adequately equipped office and is not the residence of the applicant.” The table below is the statute's own list.
| What South Dakota Requires | |
|---|---|
| Building | An enclosed commercial structure in South Dakota, easily accessible, adequately heated and lighted. An emergency vehicle dealer is exempt from the in-state rule |
| Hours | Open to the public at least 20 hours a week, between 8:00 a.m. and 8:00 p.m. The hours and a phone number are posted at the main entrance |
| Display area | An improved display area next to the building, large enough for 5 or more vehicles of the type you sell |
| Sign | An exterior sign with the business name, permanently affixed to the land or building, clearly legible from the public right-of-way |
| Repair shop | New-vehicle dealers only: a repair shop with space to repair, service, maintain, and recondition vehicles, or a contracted repair shop in the county |
| Zoning | You certify that the location meets all building codes, zoning, and land-use ordinances. A written zoning approval letter is required only when you move within the county, with 30 days' notice |
| Dwellings | Rooms in a hotel, motel, or apartment house, or any part of a dwelling house, don't qualify unless the entire ground floor is commercial |
Complete the Background Check (Application Certification)
A South Dakota Vehicle Dealer's or Used Vehicle Dealer's License requires no fingerprints and no state or FBI background check. Instead, the application carries one certification, covering you and every partner, member, officer, and financial supporter (SDCL 32-6B-6(13)).
You certify that none of them “has been convicted of a crime involving vehicle theft or fraud in the last five years.”
If you have a record
- Denial is discretionary, not automatic. The Department “may” deny for a felony involving vehicle theft or odometer fraud in the last 5 years (SDCL 32-6B-41). No other crime is a denial ground.
- The 5 years run from the conviction date. After that, the felony is no longer a denial ground, and the crime drops off the application certification.
- Unrelated felonies and misdemeanors aren't grounds. A misdemeanor matters only if it involved vehicle theft or fraud in the last 5 years, and every ground says convicted, not charged.
- Expungement doesn't reach a felony conviction. South Dakota expunges arrests that never became convictions (SDCL 23A-3-27); there is no general route to expunge or seal a felony conviction.
- You can request a hearing. A denied applicant can request a contested-case hearing under South Dakota's Administrative Procedure Act (SDCL 1-26-27).
Submit your Dealer License Application (DMV Dealer System)
You apply to the Department of Revenue online, through the DMV Dealer System at my605drive.sd.gov. The fee is $300 for the Vehicle Dealer's or Used Vehicle Dealer's License, and every fee by license type is itemized under costs.
The application asks for one identification number for the business. A corporation, LLC, or partnership gives its EIN; a sole proprietor gives an EIN, SSN, or South Dakota Driver License number. It also asks for a list of financial references.
Pass the Site Inspection (Dealer Agent)
A South Dakota Dealer Agent inspects your principal place of business before the license is issued. The Department's own page says: “A dealer inspector must inspect all principal places of business and certify they are following the law before a dealer license is issued.”
Get your Dealer License Plates
South Dakota dealer license plates cost $101 a set for the Dealer 77 plate, and you can buy as many sets as you want. The plate transfers between vehicles you own.
Dealer tags let you drive any new or used vehicle you own “on the streets and highways of this state for any purpose” (SDCL 32-6B-22). That includes personal driving. The only vehicles that can't carry one are those used for lease or hire, wreckers, and service trucks.
The other dealer plates:
- Dealer 88: for hauling inventory on commercial vehicles; the fee follows the declared gross weight schedule
- Dealer 99: $101 a set, for vehicles moving to or from an auction agency
- Boat dealer plate: $20 a set, usable for any purpose except leased or rented boats
- Motorcycle dealer plate: $24 a plate, rear-mounted
- Dealer trailer plate: $24, rear-mounted
- Snowmobile dealer plate: $10 a set
Dealer License Cost
A South Dakota Vehicle Dealer's or Used Vehicle Dealer's License costs $300 to start and $175 to renew each year. Every other fee on this page is in the table.
| Fee | Amount |
|---|---|
| Vehicle Dealer's License | $300 initial$175 renewal, each year |
| Used Vehicle Dealer's License | $300 initial$175 renewal, each year |
| Motorcycle and Off-Road Vehicle Dealer's License | $250 initial$150 renewal, each year |
| Trailer Dealer's License | $125 initial$100 renewal, each year |
| Emergency Vehicle Dealer's License | $300 initial$175 renewal, each year |
| Final Stage Manufacturer Dealer's License | $300 initialRenewal fee not published |
| Boat Dealer License | $250 initial$175 renewal, each year |
| Mobile/Manufactured Home Dealer License | $300 initial$150 renewal, each year |
| Snowmobile Dealer License | $150 initial$125 renewal, each year |
| Dealer Bond | $175 a year, Vehicle Dealer's License, credit check required$187.50 a year, Used Vehicle Dealer's License, credit check required |
| Warranty bondNew-vehicle dealers without an in-county repair facility | $50,000 bond, premium not published |
| Public liability insurance | $300,000 policy, priced by your agent |
| Dealer plates | $101 a set, Dealer 77$101 a set, Dealer 99 auction plateDealer 88, by declared gross weight$24 a plate, motorcycle$24 dealer trailer plate$20 a set, boat$10 a set, snowmobile |
| Plate mailing | $12 per set of plates$2.50 per set of decals |
| Late renewal | The full initial license fee instead of the renewal fee |
Dealer License Renewal
A South Dakota Dealer License is reviewed and renewed every year, online in the DMV Dealer System. The Department sends a renewal notice and billing about 3 months before the license expires. The paper license itself is issued for 5 years, but the yearly review and fee still apply.
Renewal is $175 a year for the Vehicle Dealer's or Used Vehicle Dealer's License; the other license types are in the cost table. If you hold more than one license type, all of them renew in the same assigned month.
Common Questions
Can you get a South Dakota Dealer License with a felony?
Yes. A felony isn't an automatic bar to a South Dakota Dealer License. The Department may deny only for a felony involving vehicle theft or odometer fraud in the last 5 years, counted from the conviction date (SDCL 32-6B-41). No other crime is named in the dealer law, and you can request a hearing if denied.
Can you get a Dealer License in South Dakota without a lot?
No, not for the Vehicle Dealer's or Used Vehicle Dealer's License. Both require an enclosed commercial building with a display area for 5 or more vehicles, and you certify it isn't your residence. Only the Mobile/Manufactured Home Dealer License may use a residence, in or next to the licensee's home park. See Office.
How many cars can you sell in South Dakota without a Dealer License?
In South Dakota, no Dealer License is required to sell fewer than 5 vehicles in a 12-month period (SDCL 32-6B-5). The exemption ends if you are licensed as a dealer in another state, or hold yourself out as being in the business of selling vehicles. For travel trailers, the number is fewer than 3.
Can you drive on South Dakota dealer plates for personal use?
Yes. Any new or used vehicle you own on a Dealer 77 plate may be driven “for any purpose,” and South Dakota doesn't limit that to the dealer or family. The only vehicles that can't carry the plate are those used for lease or hire, wreckers, and service trucks. Details under Dealer Plates.
Is a South Dakota Dealer License good for 5 years?
No. The paper license is issued for 5 years, but the Department reviews every license and bills for renewal every year (SDCL 32-6B-14). Missing the yearly deadline means paying the full initial fee instead of the renewal fee.
Do I need a business bank account?
No. Nothing in South Dakota's dealer law, the Dealer Manual, or the application requires one. The application asks for a list of financial references, which is not a bank account. Details under Application.
How long does a South Dakota Dealer License take?
No South Dakota law sets a deadline for the Department's decision (SDCL 32-6B-11). The Department verifies the facts on your application, and a Dealer Agent inspects your location before the license is issued.
Support
The Department of Revenue's Dealer Licensing Program issues every license on this page, and its regional Dealer Agents run the inspection.
| Contact | Detail |
|---|---|
| Department | South Dakota Department of Revenue, Motor Vehicle Division — Dealer Licensing Program |
| Phone | (605) 882-5192 Dealer Licensing Office(605) 394-3394 Rapid City Dealer Agent(605) 367-7936 Sioux Falls Dealer Agent(605) 626-2249 Aberdeen Dealer Agent |
| Fax | (605) 882-5199 |
| [email protected] | |
| Address | 445 East Capitol AvenuePierre, SD 57501 |
Additional sources (12)
The forms and the portal for each step are linked in the steps. These are the law, the rules, and the agency pages the page was checked against.
- SDCL Chapter 32-6B, Regulation of Vehicle Dealers — the dealer licensing law: license types, bond, office rule, plates, fees, renewal, and denial grounds
- SDCL 32-6B-2, definitions — the “principal place of business” definition: the commercial structure, the 20 hours a week, the 5-vehicle display area, the sign, and the dwelling exclusion
- SDCL 32-6B-13, license fees — the initial fee for each of the 6 vehicle dealer chapter license types
- SDCL 32-6B-15, late renewal — a renewal filed after expiration pays the initial license fee
- SDCL 32-6B-9, new vehicle warranty bond — the separate $50,000 warranty bond, and the in-county repair facility that waives it
- SDCL 32-6B-7.1, dealer bond pooling — an incorporated dealers' association may hold a $100,000 escrow account in place of individual bonds
- SDCL 32-6B-21.1, plate mailing fees — $12 per set of plates and $2.50 per set of decals when mailed
- SDCL 32-7A-2, mobile home dealer's place of business — the residence within or adjacent to the licensee's home park, subject to local zoning
- SDCL 32-6B-88, off-road vehicle special events — the free special permit for selling an off-road vehicle at an event outside your county
- SDCL 32-6B-87, shopping mall displays — up to 4 vehicles displayed in a mall common area in your own municipality, with no supplemental license
- SDCL 23A-3-27, expungement — which arrest records can be expunged, and why a felony conviction isn't among them
- SDCL 1-26-27, contested-case hearings — the hearing right when a license application is denied
