How to Start a Landscaping Business in South Dakota (2026)

Last updated: February 26, 2026

Starting a landscaping business in South Dakota is relatively straightforward: there is no statewide landscaping contractor license for general lawn care and mowing services. However, if you apply pesticides or herbicides as part of your services – as most landscapers do – you must hold a Commercial Pesticide Applicator license from the South Dakota Department of Agriculture and Natural Resources (DANR). The license costs $35 and is valid for two years. This guide covers every requirement, including pesticide certification, local licensing, insurance, and workers’ compensation, to legally operate a South Dakota landscaping business in 2026.

Landscaping Business Requirements in South Dakota at a Glance

Requirement	Agency	Cost	Timeline
General landscaping / lawn mowing license	N/A	Not required at state level	N/A
LLC formation (recommended)	SD Secretary of State	$150 online + $55/year annual report	1 business day
Commercial Pesticide Applicator license (if applying pesticides)	SD DANR	$35	After passing required exam(s); valid 2 years
Sales tax license	SD Department of Revenue	Free	Before first taxable sale or service
Local business license	City hall or county clerk	Varies by jurisdiction	Before operating
General liability insurance	Private carrier	~$500-$2,000/year	Before operating
Workers’ compensation (if hiring)	SD Department of Labor and Regulation	Varies by payroll	Before first employee

How to Start a Landscaping Business in South Dakota (Step by Step)

Step 1: Form an LLC and Get Your EIN

File Articles of Organization with the South Dakota Secretary of State online for $150 at sosenterprise.sd.gov. Annual report: $55/year due on your formation anniversary date.

Landscaping involves operating heavy equipment on client property, applying chemicals, and employing workers who do physically demanding outdoor work. An LLC separates your personal assets from business liabilities. A client injured by your equipment or a neighbor’s property damaged by your pesticide application could result in a lawsuit – the LLC protects your home and savings.

Apply for a free EIN from the IRS at irs.gov. If you operate under a trade name, register a fictitious name at your county Register of Deeds office for $10 (valid 5 years).

Step 2: Commercial Pesticide Applicator License (If Applying Pesticides)

This is the key licensing requirement for most South Dakota landscapers. If your business applies any pesticides, herbicides, fertilizers classified as pesticides, or fungicides for compensation on another person’s property, you must hold a Commercial Pesticide Applicator license from the South Dakota Department of Agriculture and Natural Resources (DANR).

Key details:

• License fee: $35
• License validity: 2 years; must be renewed by March 1 of the renewal year
• Exam requirement: Pass the DANR written examination for the General Category plus any applicable subcategories (e.g., turf and ornamental for landscaping). Applicators must be certified before applying pesticides commercially
• Training resources: SDSU Extension offers Commercial Pesticide Applicator Training through online courses (available December 3, 2025 through February 28, 2026 for the current recertification cycle) and occasional in-person sessions. Online training available at extension.sdstate.edu
• Registration system: Apply and manage your license through the SD DANR online system at apps.sd.gov/doa/ecat3

Contact SD DANR at danr.sd.gov/Agriculture/Inspection/Pesticide for current exam schedules and requirements.

Important: If you only offer mowing, edging, and other non-chemical services, the pesticide applicator license is not required. But the moment you spray any chemical product on a client’s property for compensation – even a common weed killer – you need the license.

Step 3: Register for Sales Tax

Landscaping services and the retail sale of plants, sod, mulch, and landscaping materials are generally subject to South Dakota’s 4.2% state sales tax. Register for a free sales tax license with the SD Department of Revenue at dor.sd.gov/businesses/taxes/sales-use-tax before your first client.

South Dakota has no state income tax, so your landscaping business profits are not subject to state income tax. This is a significant advantage over states that tax both business income and services.

Step 4: Check Local Business License Requirements

South Dakota has no general statewide business license, but local requirements vary:

• Contact your city hall or county clerk’s office before starting operations
• Some South Dakota cities require a general business license or home occupation permit
• If you store chemicals or maintain a fleet of vehicles, check local zoning and storage requirements
• Some municipalities have noise ordinances affecting early-morning landscaping operations

Step 5: Get Business Insurance

Landscaping businesses should carry:

• General liability insurance: $1M per occurrence minimum. Covers property damage (broken windows, damaged irrigation systems, fence damage), bodily injury to clients or bystanders, and completed operations claims. Annual cost: approximately $500-$2,000/year depending on revenue and services offered.
• Pesticide liability: If you apply pesticides, verify your general liability policy covers pesticide drift damage and other chemical-related claims. Some policies exclude pesticide coverage – you may need a rider or specialized policy.
• Commercial auto insurance: Required for your trucks and trailers used for business. Personal auto policies do not cover commercial use. Annual cost varies by vehicle and coverage.

Many commercial clients, HOAs, and property management companies require a certificate of insurance before hiring a landscaping contractor.

Step 6: Workers’ Compensation (If Hiring Employees)

South Dakota requires most employers to carry workers’ compensation insurance before hiring any employee. Landscaping is one of the physically demanding industries with significant injury risk from equipment, lifting, falls, and heat exposure. Workers’ comp for landscaping employees may carry higher rates than office workers due to this risk profile.

Contact the SD Department of Labor and Regulation at dlr.sd.gov/workers_compensation (605-773-3681) for a list of approved carriers. Coverage must be in place before the employee’s first day of work.

Cost to Start a Landscaping Business in South Dakota

Item	Cost	Notes
LLC formation	$150	One-time; $55/year annual report
Registered agent	$49-$150/year	Annual
Commercial Pesticide Applicator license	$35 / 2 years	Required if applying pesticides; exam fees additional
Sales tax license	Free	Required before first taxable service
Local business license	$0-$150+/year	Varies by city/county
General liability insurance	$500-$2,000/year	Annual; $1M+ per occurrence
Commercial auto insurance	$1,500-$4,000+/year	Annual; per vehicle
Landscaping equipment (mowers, trimmers, etc.)	$3,000-$30,000+	One-time; varies widely
Trailer	$2,000-$8,000	One-time; used vs. new
Year 1 Total (solo, basic equipment)	~$7,500-$40,000	LLC + insurance + equipment + licensing

Estimated total startup cost: $7,500-$40,000+ depending on equipment and services offered

Related South Dakota Business Guides

• How to Start a Cleaning Service in South Dakota
• How to Start a Food Truck in South Dakota
• How to Start a Daycare in South Dakota
• How to Start an HVAC Business in South Dakota
• How to Start a Hair Salon in South Dakota
• How to Become a Private Investigator in South Dakota

← Back to all South Dakota business guides

Frequently Asked Questions

Do landscaping businesses need a license in South Dakota?

For general lawn mowing and maintenance (no pesticides), there is no state landscaping license in South Dakota. However, if you apply any pesticides, herbicides, or fungicides for compensation, you must hold a Commercial Pesticide Applicator license from the SD Department of Agriculture and Natural Resources (DANR). The license costs $35 and is valid for 2 years. Get the details at danr.sd.gov.

How do I get a pesticide applicator license in South Dakota?

Contact the SD DANR at danr.sd.gov/Agriculture/Inspection/Pesticide to get started. You must pass the written exam for the General Category plus any applicable subcategories. SDSU Extension offers Commercial Pesticide Applicator Training online and in-person. The license fee is $35 for a 2-year license, renewable by March 1 of the renewal year. Register and manage your license at apps.sd.gov/doa/ecat3.

Does a South Dakota landscaping business need to collect sales tax?

Yes, in most cases. Landscaping services and the retail sale of plants, sod, mulch, and landscaping materials are generally subject to South Dakota’s 4.2% state sales tax. Register for a free sales tax license with the SD Department of Revenue at dor.sd.gov before your first client. South Dakota has no state income tax, so landscaping profits are not subject to state income taxation.

What insurance does a South Dakota landscaping business need?

At minimum: (1) general liability insurance ($1M+ per occurrence) covering property damage, bodily injury, and completed operations; (2) commercial auto insurance for your trucks and trailers; and (3) workers’ compensation once you hire any employee. If you apply pesticides, verify your liability policy explicitly covers pesticide-related claims – some policies exclude this. Many commercial clients and HOAs require a certificate of insurance before hiring.

Does a South Dakota landscaper need workers’ compensation?

Yes, if you hire any employees. South Dakota requires most employers to carry workers’ compensation insurance before their first employee starts work. Agricultural workers are one of the narrow exceptions, but most standard landscaping employees are not classified as agricultural workers. Contact the SD Department of Labor and Regulation at dlr.sd.gov/workers_compensation for carrier information.