SOUTH DAKOTA SECURITY GUARD COMPANY LICENSING

Who needs it. No one at the state level. South Dakota has no statute or rule requiring a security guard agency / contract security company, its manager, or its guards to be licensed, registered, examined, bonded or insured. The only SDCL reference to a 'licensed security service' is a federal-DPPA-style motor-vehicle-record disclosure category in SDCL 32-5-147(7); it presupposes licensing elsewhere and creates none in South Dakota. [4]

Local licensing. No state-level license exists. Every SD municipality has a general licensing power (SDCL 9-34-1: 'Every municipality shall have power to fix the amount, terms, and manner of issuing and revoking licenses.'), and home-rule cities may impose stricter standards (SDCL 6-12-5), so a city COULD license guard companies by ordinance. Sioux Falls (largest city): the City's official Licensing index lists no security guard / patrol / watchman license and states 'Not all businesses and professions need City licensing.' Sioux Falls does license ALARM installation and monitoring companies (Police Records; Code ch. 110 and 'Alarm Systems Ordinance Chapter 119'; $75 new / $35 renewal received before Dec. 31; surety bond of at least $10,000 naming the City as obligee) - relevant only if the guard company also installs or monitors alarms. No evidence of any SD local guard-company license was found, but the local layer is verified only for Sioux Falls. Both Sioux Falls files are WebFetch renderings (curl blocked by Akamai); only the quoted phrases are verbatim.

Your guards. None. South Dakota has no state guard card or registration for individual security guards. For armed posts, general firearm law applies; SDCL 23-7-8 states nothing in that section prevents a 'security guard employed on the premises', with the sheriff's written permission, from carrying a concealed weapon in the performance of duties. [11]

Branch offices

No security-license branch rule exists. For sales tax only, a permit is needed for each place of business unless the Secretary of Revenue grants a statewide permit. [13]

1. There is no state security-license application. General obligation: obtain a South Dakota sales tax (retailer) permit from the Department of Revenue, because receipts from services (including guard services) are subject to sales tax. [13]
2. Services are taxable unless specifically exempt; tax is imposed on gross receipts from any business in which a service is rendered. [14]
3. State rate in force on 2027-01-01: 4.2% (the version of SDCL 10-45-2 in force through June 30, 2027). [14]
4. DOR rule example expressly treats separately charged security guard services as taxable. [15]
5. Only if the company also installs or monitors alarm systems in Sioux Falls: obtain a Sioux Falls Alarm Business License (Police Records; $75 new / $35 renewal received before Dec. 31; surety bond at least $10,000 naming the City as obligee; technician list). [25]

• 2025-07-01ENACTED, IN FORCE before 2027-01-01 (no licensing change): municipalities may prohibit lawfully carried dangerous weapons in a building/facility during an event only if metal detectors are used and armed security personnel are posted at each public entrance. 2025 HB 1218 = SL 2025, ch 36 (confirmed from the Legislature's session-law table); signed 2025-03-31; no emergency clause or effective-date section, so effective July 1, 2025 under SDCL 2-14-16. SDCL 9-14-45 (SL 2025, ch 36, § 4; 2025 HB 1218) [9]
• 2025-07-01Supporting quote for the July 1, 2025 effective date of SL 2025, ch 36 (default rule). SDCL 2-14-16 [10]
• n/a (withdrawn)NOT ENACTED: 2026 HB 1025 would have let uniformed private security officers issue written no-trespass orders (50-foot buffer) under local standards and required employers to keep copies one year; withdrawn at the prime sponsor's request 2026-01-20. No change to law. 2026 HB 1025 [18]
• n/a (failed)NOT ENACTED: 2025 HB 1214 (civil immunity for volunteer security personnel of religious organizations) deferred to the 41st legislative day (killed) on 2025-02-10. 2025 HB 1214 [20]
• 2027-07-01ALREADY ENACTED, TAKES EFFECT LATER IN 2027 (tax, not licensing): state sales tax rate, which applies to taxable security services, rises from 4.2% to 4.5% on July 1, 2027 (codified future version of SDCL 10-45-2; SL 2023, ch 32). SDCL 10-45-2 (SL 2023, ch 32, §§ 1, 19) [14]
• n/aNo 2027-session bills yet: the Legislature's API listed 0 bills for the 2027 regular session (session id 174, convenes 2027-01-12) as of 2026-11-09. 2025 regular, 2025 special and 2026 bill-title scans found no bill creating security-business licensing. sdlegislature.gov/api/Bills/Session/174 [2]

• (none) - no SDCL chapter licenses security guard / patrol / contract security businesses — Two independent full-text scans of SDCL Titles 1-62 (official Legislature statute API) [1]
• SDCL 32-5-147(7) — Disclosure of motor vehicle record personal information - 'licensed security service' (DPPA mirror; creates no license) [4]
• SDCL 9-34-1 (ch. 9-34) — Municipal power to fix amount, terms and manner of issuing and revoking licenses (security businesses not enumerated) [5]
• SDCL 6-12-5 — Home-rule charters/ordinances may set standards more stringent than state law [7]
• SDCL 9-14-44, 9-14-45 (SL 2025, ch 36 = 2025 HB 1218) — Municipal firearm restrictions; event weapon ban allowed only with metal detectors and armed security personnel at each public entrance [8]
• SDCL 23-7-8 — Concealed pistol permit application - carve-out for 'security guard employed on the premises' with sheriff's written permission [11]
• SDCL 22-35-6 — Entering or refusing to leave property after notice (trespass) - operational context for guards [12]
• SDCL 10-45-2, 10-45-4, 10-45-4.1, 10-45-24 — Sales tax on services; retailer (sales tax) permit for each place of business [13]
• SDCL 2-14-16 — Effective date of legislative acts (default July 1 after a regular session) [10]
• (none) - no ARSD article licenses security guard / patrol businesses — Two independent full-text scans of all 355 active ARSD articles [3]
• ARSD 64:06:02:83 — Department of Revenue - rental facilities; example treating separately charged security guard services as taxable [15]
• ARSD 20:04:13:45 — Gaming Commission greyhound-racing occupational license fee schedule ('Security guard: $12') - racetrack personnel only [16]
• ARSD 20:18:01:01(27), 20:18:06 (fees), 20:18 dice rule — Commission on Gaming (Deadwood) support licensee definition and a dice-handling rule naming a 'licensed security officer' - casino-employee licensing, not a security-business license [17]

1. sd-v-sdcl-fullscan · retrieved 2026-11-09
2. sd-fulltext-scan · retrieved 2026-11-09
3. sd-v-arsd-scan · retrieved 2026-11-09
4. SDCL 32-5-147 Disclosure of motor vehicle record information · retrieved 2026-11-09
5. SDCL Chapter 9-34 Trade Regulation and Licenses (municipal licensing powers) · retrieved 2026-11-09
6. SDCL 9-34-1 Licensing procedure and terms; 9-29-1 Municipal jurisdiction · retrieved 2026-11-09
7. SDCL 6-12-5 Home rule standards at least as stringent as state law · retrieved 2026-11-09
8. SDCL 9-14-44 and 9-14-45 (SL 2025, ch 36) and HB 1218 action log · retrieved 2026-11-09
9. 2025 HB 1218 enrolled text and session-law table entry (SL 2025, ch 36) · retrieved 2026-11-09
10. SDCL 2-14-16 Effective date of legislative acts · retrieved 2026-11-09
11. SDCL 23-7-8 Application for concealed pistol permit · retrieved 2026-11-09
12. SDCL 22-35-6 Entering or refusing to leave property after notice · retrieved 2026-11-09
13. SDCL 10-45-2, 10-45-4, 10-45-4.1, 10-45-24 (sales tax on services; retailer permit) · retrieved 2026-11-09
14. SDCL 10-45-2 (incl. version effective July 1, 2027), 10-45-4, 10-45-4.1 · retrieved 2026-11-09
15. ARSD 64:06:02:83 Rental facilities (security guard services example) · retrieved 2026-11-09
16. ARSD 20:04:13:45 Greyhound racing license fee schedule · retrieved 2026-11-09
17. ARSD Article 20:18 (Commission on Gaming) - excerpts on support licensees and 'licensed security officer' · retrieved 2026-11-09
18. 2026 HB 1025 title and action log · retrieved 2026-11-09
19. 2026 HB 1025 introduced text and action log · retrieved 2026-11-09
20. 2025 HB 1214 title and action log · retrieved 2026-11-09
21. 2025 HB 1214 introduced text and action log · retrieved 2026-11-09
22. SD Department of Labor & Regulation licensing forms and boards index · retrieved 2026-11-09
23. SD Boards and Commissions Portal A-Z list · retrieved 2026-11-09
24. City of Sioux Falls Licensing index (WebFetch rendering) · retrieved 2026-11-09
25. City of Sioux Falls Alarm Business License page (WebFetch rendering) · retrieved 2026-11-09
26. City of Sioux Falls Licensing index and Alarm Business License · retrieved 2026-11-09

Compiled from the primary government sources above, retrieved on the dates shown. This page is a research summary, not legal advice. Confirm current requirements with the issuing authority before you file.