SD Small Business Development Center
Teaming up with the Small Business Development Center, local entrepreneurs have access to professional, no cost business consulting services, including one-on-one counseling and training, to individuals starting a business or looking for ways to improve an existing business. The South Dakota Small Business Development Center (SBDC) helps new entrepreneurs realize their dream of business ownership and assists existing businesses in their efforts to remain competitive. Consultation services are available in the following areas:
- Research & industry benchmark comparisons
- Development and improvement of business plans creating a roadmap for the business
- Financial analysis and projections used to understand current conditions and plan for future expansion
To schedule an appointment, please call:
Dona Leavens, Regional Director
SD Center for Enterprise Opportunity (SD CEO)
SD CEO provides business counseling assistance to entrepreneurs, small business owners, managers, and individuals who are considering starting a business. Our counseling services are tailored to the specific need of the individual or business and cover areas including start-up assistance, business plan development, management, marketing, financing, cash flow management and other guidance needed to help South Dakota entrepreneurs achieve success.
SD CEO counseling services are available at no charge and are completely confidential.
To request an appointment with SD CEO, contact:
Starting a business can be risky, however, understanding the risks and minimizing them through careful planning can improve your chances for success. If you are interested in starting a business in Spearfish, below is a list of steps to simplify the process and get your new business into gear!
Step 1 – Develop a Business Plan
Only 19% of small business owners use business planning. And only 19% of small businesses survive at the end of the year. Coincidence? Your business plan communicates what your business does, your vision for the future, and the steps you will take to reach those objectives. For assistance, please contact the Small Business Development Center or visit sba.gov for free business planning software.
Step 2 – Business Name Registration
State law requires all partnerships and sole proprietorships that use fictitious names to register their business name with the SD Secretary of State. Corporate entities that are conducting business in SD under any other name other than their corporate name are also required to file. To register your business name online visit the Secretary of State website here.
Step 3 – State and Local Business License
While Spearfish has no general business licensing requirements, certain type of businesses do need to obtain a special license/permit in order to operate. Contractor's license, alcohol license and home based business permits can be obtained by contacting the City of Spearfish. For a listing of businesses requiring a state license please click here.
Step 4 – Federal Employer Identification Number
An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number. It is used to identify a business for tax purposes. Al businesses need an EIN when hiring employees or when operating as a corporation or partnership. To obtain a EIN click here. This is a free service offered by the IRS.
Step 5 – State Sales and Use Tax License
Any business, organization or person engaged in retail sales, including the selling, leasing and renting of tangible personal property, products transferred electronically, or the sale of services is required to obtain a sales tax license and collect and remit the applicable tax. To learn more about sale and use tax, download guide here. To apply for a sales tax license click here. There is no fee to obtain a license.
Step 6 – Self Employment Tax
Self-employed individuals generally must pay self-employment tax (SE tax) as well as income tax (SE tax) is a social security and Medicare tax primarily for individuals who work for themselves. It is similar to the social security and Medicare taxes withheld from the pay of most wage earners. It is computed using Schedule SE (Form 1040). To learn more, click here.
Step 7 – Unemployment Tax
All new and acquired businesses in South Dakota are required to register with the Unemployment Insurance (UI) Division of the Department of Labor. The program is financed by employers through payroll taxes and it provides insurance or benefits to people who become unemployed. For all other new employers in South Dakota, the rate is 1.75 percent for the first year and is applied to the first $13,000 in wages paid to each employee during a calendar year. To learn more about unemployment Insurance click here.
Step 8 – Federal Unemployment Insurance (FUTA)
The Federal Unemployment Tax Act (FUTA), provides for payments of unemployment compensation to workers who have lost their jobs. Most employers pay both a Federal and a state unemployment tax. Employers report this tax by filing an annual Form 940 with the Internal Revenue Service. The tax rate is 6% and is accessed to the first $7,000 on wages paid to each employee. For more information, click here.
Step 9 – Secure Funding
Based on your business plan, find the financing you will need to run your business. Spearfish Economic Development can offer guidance when you are seeking business finance and incentives. Learn more about local economic development programs by clicking here.
Step 10 – Find a Business Location
If you do not have a business location already, contact Spearfish Economic Development to find available properties in Spearfish that are for sale and/or lease. To search for commercial properties for sale and/or lease click here.
Contact us to share your success story or to find additional business assistance. Spearfish Economic Development is here to help you become a successful entrepreneur.
Business Park property is competitively priced ranging from $0 - $2.50 SF (based on project value). Terms are available to qualifying firms through the Spearfish Economic Revolving Fund administered by the Spearfish Economic Development Corporation. Parcels ranging from 1 to 16 acres remain available to expanding businesses. Click here to learn more…
Look no further. Visit our funding pages for information, procedures and applications to various loan programs that are available to existing and new businesses. Click here to learn more…