South Dakota Contractor License Bond

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What is a South Dakota contractor license bond?

In South Dakota, the Department of Labor and Regulations handles electrical and plumbing contractor licensure at the state level. General contractors don’t need a state license, but many municipalities have local requirements for contractor licensing and bonding. 

Electrical contractors and Class B electricians must obtain $10,000 license bonds, as the South Dakota Electrical Commission requires. Plumbing license types and required bonds vary and are listed in full on the South Dakota Plumbing Commission website. 

Sioux Falls

In Sioux Falls, the City of Sioux Falls Planning and Development Services department requires all contractors to post a contractor license bond. Building contractors must post a $20,000 bond, and all other contractors must post a $10,000 bond. Contractor classifications requiring the $10,000 bond are as follows:

  • Electrical contractor
  • Fire alarm contractor
  • Class B electrician 
  • Sign wiring contractor 
  • Master plumber contractor 
  • Irrigation contractor
  • Master mechanical contractor 
  • Fireplace contractor 
  • Refrigeration contractor 
  • Manufactured and mobile home plumbing installation contractor
  • Sign and outdoor advertising contractor

Learn more about how contractor license bonds work in our complete guide

Get Your South Dakota Contractor License Bond:

South Dakota Contractor License Bond Costs

Applicants must pay an annual premium to obtain a contractor license bond. The premium is a small percentage of the total bond amount. In South Dakota, this percentage generally ranges from 1% to 5%.

Your personal credit score is the main factor determining your premium rate, but business financials and industry experience may also be considered. Generally, the higher your credit score, the lower your premium. Those with lower credit scores can, in many cases, still get bonded but at a higher premium price.

Frequently Asked Questions

To ensure you meet all requirements for your city or county, you can reach out directly to your local governing organization. For instance, those working in Sioux Falls can contact their authority through their contractor licensing department.

The South Dakota contractor license bond guarantees that you follow all relevant laws in your work as a licensed contractor. If a client suffers damages due to an illegal action on your part, they can request reimbursement with a bond claim. If your surety deems the claim legitimate, they will provide initial payment. However, as the contractor, you must pay the surety back over time for the full amount.

Get Your Contractor License Bond in South Dakota

ZipBonds offers the fastest and most secure option for getting bonded. Our all-digital platform is intuitive and straightforward. Apply online, email or call 888.435.4191 to speak with an agent directly.



Founders Ryan Swalve and Zach Mefferd formed the vision for when they realized how overly complicated it was to help clients place surety. The frustration of being unable to incorporate the technology they’d used in other insurance-focused projects left them thinking “there has to be a better way.”

Fast forward a couple of years, and that better way is the impetus of everything we do at ZipBonds. We constantly look for innovative ways to improve the bonding process for our clients and agents. Our team comprises individuals who understand all angles of surety – for companies, agencies, and individuals. Incorporating everyone’s point of view to improve the process while simultaneously integrating cutting-edge technology is what sets our business apart.