How to get a liquor license in South Dakota for a bar
Your liquor license is usually the longest step in opening a bar. Here's who issues it in South Dakota, what to expect, and how to plan around it.
The agency: South Dakota Department of Revenue
South Dakota on-sale licenses are issued through your municipality or county, with state approval.
Visit the official South Dakota Department of Revenue website →
License state
Steps to get your bar licensed in South Dakota
- Form your business (LLC or corporation) and get your federal EIN and state tax registration.
- Pick a location that can be licensed. Check zoning, distance rules (for example, near schools or churches) and whether licenses are capped in that area before you sign a lease.
- Choose the right license type: beer and wine vs. full liquor, and bar vs. restaurant. Each has different fees and rules.
- Apply with the South Dakota Department of Revenue and your local city or county. Expect background checks, floor plans, and possibly a public notice period or hearing.
- Pass inspections (building, fire, health) and get your certificate of occupancy.
- Train your staff in responsible alcohol service if your state or insurer requires it.
- Get insured. Liquor liability insurance is often required by landlords and lenders.
South Dakota liquor license questions
Who issues liquor licenses in South Dakota?
South Dakota on-sale licenses are issued through your municipality or county, with state approval. The main agency to start with is the South Dakota Department of Revenue.
Is South Dakota an alcohol "control state"?
No. South Dakota is a license state: private businesses handle wholesale and retail sales under state licenses.
How long does it take to get a liquor license in South Dakota?
It varies by license type and location. Many approvals take several weeks to several months, especially when public notice, local hearings or inspections are required. Check current processing times with the South Dakota Department of Revenue, and build that time into your opening plan and lease.
How much does a liquor license cost in South Dakota?
Fees depend on the license type, the alcohol you serve (beer and wine vs. full liquor) and your location. Some areas limit the number of full liquor licenses, so you may need to buy an existing license on the open market, which can cost far more than the state fee. Get the current fee schedule from the South Dakota Department of Revenue and ask a local liquor attorney about availability.
This page is general information, not legal advice. Liquor laws change and vary by city and county; confirm every requirement with the South Dakota Department of Revenue, your local government, and a licensed attorney.