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How Much Does a Contractor License Bond Cost in South Dakota?
A South Dakota Contractor License Bond costs anywhere from $100 - $2,000. While these licensing bonds must be in the amount of $10,000 - $20,000, you only pay a small percentage of that (typically 1% - 10%).
The percentage that you qualify for (known as your bond premium or bond rate) is determined mainly by your credit score. To a lesser extent, your industry experience, business financials, and past bonding history can also impact your premium.
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Surety Bond Cost Based on Credit Score |
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|
Surety Bond |
Surety Bond Amount |
Over 700 |
Between 600 – 699 |
Below 599 |
|
Electrical Commission Contractor License Bond |
$10,000 |
$100 - $300 |
$300 - $500 |
$500 - $1,000 |
|
Sioux Falls Contractor Bond - Residential Building Contractors |
$20,000 |
$200 - $600 |
$600 - $1,000 |
$1,000 - $2,000 |
How to Obtain a Contractor License Bond in South Dakota
1. Understand Your Bond Needs
Contractor License Bonds typically range from $10,000 - $20,000 in South Dakota. Bond requirements are set by the state or the organization requiring the bond (your obligee).
To find the bond amount you need, check your obligee’s website. This information can also commonly be found on contractor licensing applications.
2. Apply for Your Contractor License Bond
Use our online bond application to get an instant bond quote. This form is quick to fill out, available 24/7, and only requires basic information such as:
- Bond Amount Needed
- Obligee Name (Ex. South Dakota Electrical Commission)
- Contact information
- Contractor License Number (if available)
One of our new contractor clients, Thomas, thought he would have to wait days for his Contractor License Bond. He was pleasantly surprised when our online application got him bonded in less than 24 hours.
3. Get a Bond Quote
A bond quote will be sent directly to the email you provide on your application.
This usually only takes a few minutes. However, in some cases, it may take a bit longer. Please check your Spam Folder.
4. Buy Your Bond
To purchase your bond: log in to our website, fill out the forms, and pay your invoice. An electronic copy of your bond will be emailed, while the original will be sent via mail.
Who Needs a South Dakota Contractor License Bond?
South Dakota contractors need to get a Contractor License Bond to get licensed at both state and municipal levels. The bond amount varies depending on the license being applied for and/or the type of work being done.
- The South Dakota Electrical Commission requires a $10,000 bond from electrical contractors and Class B electricians.
- The South Dakota Department of Revenue requires contractor businesses structured as a corporation or LLC to hold a Contractor’s Excise Tax License Bond (SL 10-46B-11). Amount varies based on expected excise tax liability.
Beyond these statewide requirements, contractors may also need a bond if working in Sioux Falls. This area has multiple bonding requirements for various trades, including plumbing, electrical, and irrigation.
|
Surety Bond |
Penal Sum |
Premium |
|
Sioux Falls Contractor Bond - Residential Building Contractors |
$20,000 |
From $200 |
|
Sioux Falls Contractor Bond - Electrical Contractor, Class B Electrician |
$10,000 |
From $100 |
|
Sioux Falls Contractor Bond - Electrical Apprentice, Electrical Journeyman |
$10,000 |
From $100 |
|
$10,000 |
From $100 |
|
|
Sioux Falls Contractor Bond - Mechanical Contractor, Fireplace Contractor, Refrigeration Contractor |
$10,000 |
From $100 |
|
$10,000 |
From $100 |
|
|
Sioux Falls Contractor Bond - Plumber Apprentice, Plumber Journeyman |
$10,000 |
From $100 |
|
Sioux Falls Contractor Bond - Manufactured and Mobile Home, Plumbing Installation Contractor |
$10,000 |
From $100 |
|
$10,000 |
From $100 |
|
|
Sioux Falls Contractor Bond - Sign and Outdoor Advertising Contractor |
$10,000 |
From $100 |
|
Electrical Commission Electrical Contractors or Class B Electricians Bond |
$10,000 |
From $100 |
|
$1,000-$50,000 |
From $100 |
Getting a South Dakota Contractor License
In South Dakota, only electricians and plumbers need to be licensed by the state. However, some cities may have their own licensing requirements for contractors outside of those trades.
For example, to get a South Dakota Contractor License to do residential construction in Sioux Falls, you need:
- A passing mark on the Construction Supervisor Examination.
- A $20,000 Contractor License Bond.
- Proof of contractor’s insurance, particularly $300,000 in General Liability Insurance.
- A complete application, including payment for the $75 fee.