South Dakota Nexus Requirements
South Dakota's economic nexus threshold is $100,000 or 200 transactions. Learn about all nexus types, registration requirements, and compliance steps.
Economic Nexus Threshold
Economic nexus threshold is $100,000 in sales or 200 transactions (Wayfair origin state)
Physical Presence Requirements
Physical presence includes property, employees, or inventory. This can include maintaining an office, warehouse, or inventory location; having employees or contractors working in the state; attending trade shows or conducting business meetings regularly; or storing property or equipment within state borders.
Employee Nexus in South Dakota
No state income tax; no employer withholding required
Affiliate & Click-Through Nexus
Affiliate Nexus
N/ANo affiliate nexus provisions
Click-Through Nexus
N/ANo click-through nexus provisions
Marketplace Facilitator
South Dakota requires marketplace facilitators (such as Amazon, Etsy, and similar platforms) to collect and remit sales tax on behalf of third-party sellers. If you sell exclusively through qualifying marketplaces, the marketplace handles your South Dakota sales tax collection obligations.
How to Register in South Dakota
Determine your nexus
Confirm you have economic or physical nexus based on the thresholds above.
Gather required information
You will need your EIN, business formation documents, and expected sales volume in South Dakota.
Register online
Complete the registration through South Dakota's official portal.
Begin collecting & remitting
Once registered, start collecting applicable taxes and file returns by the assigned schedule.
Frequently Asked Questions
What is the economic nexus threshold in South Dakota?
South Dakota's economic nexus threshold is $100,000 in annual sales or 200 transactions. Once you exceed this threshold, you are required to register for sales tax collection and remittance in South Dakota.
What creates physical presence nexus in South Dakota?
Physical presence includes property, employees, or inventory. This can include having employees, offices, warehouses, inventory, or other tangible property in the state.
How do I register for sales tax in South Dakota?
You can register for South Dakota sales tax through the state's online portal. Visit the South Dakota Department of Revenue website to complete your registration. You will need your business information, EIN, and expected sales volume.
What are the employer tax obligations in South Dakota?
No state income tax; no employer withholding required
Does South Dakota have marketplace facilitator laws?
Yes, South Dakota requires marketplace facilitators (such as Amazon, Etsy, and similar platforms) to collect and remit sales tax on behalf of third-party sellers. If you sell exclusively through marketplaces, the marketplace may handle your South Dakota sales tax obligations.
What happens if I don't register for nexus in South Dakota?
Failing to register and collect applicable taxes in South Dakota can result in back taxes, penalties, and interest on uncollected amounts. South Dakota may also conduct audits that cover multiple prior years. It is recommended to register proactively once you determine you have nexus.
Explore Other States
Need help with South Dakota compliance?
Let us handle your South Dakota registration, ongoing filings, and multi-state compliance monitoring.
Get a Free Consultation
Tell us about your business and we'll get back to you within 24 hours to discuss how we can help.