How Much Does It Cost to Start a Landscaping Business in South Dakota?

South Dakota has a cost index of 0.78x the national average for landscaping business businesses. Here is a complete line-by-line cost breakdown based on local data.

Budget Setup
$3,900
Mid-Range
$39,000
Premium Setup
$117,000
South Dakota is one of the most tax-friendly states in the nation — no corporate income tax, no personal income tax, and no business inventory tax. The state ranked #2 on the Tax Foundation's 2026 State Tax Competitiveness Index but #35 on CNBC's 2025 Top States for Business due to its small population and limited infrastructure.
Register your business: South Dakota Secretary of State ((605) 773-4845)
Tip: Register with the South Dakota Department of Revenue for your sales tax license

Line-Item Cost Breakdown

Category Low Mid High Notes
LLC filing $234 $780 $1,950 LLC filing fee in South Dakota: $150. LLC fee varies by state. Some states (CA, AZ) require contractor licenses with additional fees ($500-$1,000+). Many states only require a business license.
Business license $78 $390 $1,950 Pesticide/herbicide applicator license required in all states if applying chemicals ($50-$200 + exam). Contractor license required in some states for hardscaping/irrigation. Home occupation permit if home-based.
Commercial mower(s) $2,340 $11,700 $39,000 Commercial zero-turn mower $5,000-$15,000. Walk-behind mower $1,000-$3,000. String trimmer $250-$500. Backpack blower $300-$600. Edger $200-$400. Hand tools $500-$1,000. Equipment trailer $1,500-$5,000.
Truck for hauling equipment $3,900 $19,500 $46,800 Used pickup truck $5,000-$25,000. New truck $30,000-$60,000. Equipment trailer $1,500-$5,000. Vehicle lettering/wrap $200-$3,000.
Fuel $156 $390 $1,560 Ongoing expense. Monthly fuel $200-$600. Parts/maintenance $100-$300/mo.
General liability $780 $2,340 $5,460 Annual cost. General liability $600-$1,200/yr. Commercial auto $2,000-$4,000/yr. Equipment insurance $400-$800/yr. Workers comp $170/mo per employee average.
Vehicle lettering $234 $1,170 $3,900 Vehicle lettering $200-$500. Door hangers $100-$300. Yard signs $50-$200. Website $200-$1,000. Google/Facebook ads $200-$500/mo initial.
Invoicing software $0 $234 $780 Jobber/LawnPro $30-$150/mo. QuickBooks $25-$80/mo. Free alternatives available for solo operators.
3 months operating expenses $1,170 $4,680 $15,600 Monthly operating: fuel $200-$600, equipment maintenance $100-$300, insurance $100-$250, marketing $100-$500, software $30-$150.
Estimated Total $3,900 $39,000 $117,000 Adjusted for South Dakota's cost index (0.78x national avg)

LLC Registration in South Dakota

LLC Filing Fee
$150

To form an LLC in South Dakota, you file Articles of Organization (or Certificate of Formation) with the Secretary of State. The base filing fee is $150.

File online at: South Dakota Secretary of State

An EIN (Employer Identification Number) is free from the IRS and required for any LLC with employees, multiple members, or that wants a business bank account.

Permits & Licenses in South Dakota

Estimated Permit Costs
$150

Landscaping Business businesses in South Dakota typically need multiple permits and licenses. Estimated total permit costs are around $150.

Pesticide/herbicide applicator license required in all states if applying chemicals ($50-$200 + exam). Contractor license required in some states for hardscaping/irrigation. Home occupation permit if home-based.

Always check with your local city and county offices for specific requirements. Requirements vary significantly between jurisdictions within South Dakota.

Insurance Costs in South Dakota

Annual Insurance Cost
$2,000

A landscaping business in South Dakota should budget approximately $2,000/year for insurance coverage.

Annual cost. General liability $600-$1,200/yr. Commercial auto $2,000-$4,000/yr. Equipment insurance $400-$800/yr. Workers comp $170/mo per employee average.

Coverage TypeDetails
General LiabilityCovers third-party bodily injury and property damage claims
Workers CompensationSouth Dakota rate: $0.85 per $100 payroll (national avg: $1.03)
Property/EquipmentCovers business property, equipment, and inventory
Total Annual Estimate$2,000

Equipment & Setup

Commercial zero-turn mower $5,000-$15,000. Walk-behind mower $1,000-$3,000. String trimmer $250-$500. Backpack blower $300-$600. Edger $200-$400. Hand tools $500-$1,000. Equipment trailer $1,500-$5,000.

ItemBudgetMid-RangePremium
Commercial mower(s) $2,340 $11,700 $39,000
Truck for hauling equipment $3,900 $19,500 $46,800
Fuel $156 $390 $1,560

Working Capital

Plan for at least 3 months of operating expenses as working capital. For a mid-range landscaping business in South Dakota, that means approximately $4,680 ($1,560/month).

Monthly operating: fuel $200-$600, equipment maintenance $100-$300, insurance $100-$250, marketing $100-$500, software $30-$150.

Ready to Register Your Landscaping Business in South Dakota?

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Other Business Types in South Dakota

Landscaping Business Costs in Neighboring States

StateLLC FeePermitsInsurance/yrCost Index
Iowa $50 $150 $2,000 0.8x Details →
Minnesota $155 $250 $2,500 0.92x Details →
Montana $35 $200 $2,500 0.88x Details →
North Dakota $135 $150 $2,000 0.8x Details →
Nebraska $100 $200 $2,200 0.82x Details →

Frequently Asked Questions

How much does it cost to start a landscaping business in South Dakota?
Based on our research, starting a landscaping business in South Dakota costs approximately $3,900 for a budget setup, $39,000 for a mid-range operation, and up to $117,000 for a premium setup. South Dakota has a cost index of 0.78x the national average.
How much is an LLC in South Dakota?
The LLC filing fee in South Dakota is $150, paid to the Secretary of State. You can file online at https://sdsos.gov/business-services/.
Do I need a business license for a landscaping business in South Dakota?
Yes. Most landscaping business businesses in South Dakota need at minimum a general business license and possibly industry-specific permits. Permit costs in South Dakota average around $150 for a landscaping business.
How much is workers compensation insurance in South Dakota?
South Dakota's average workers compensation rate is $0.85 per $100 of payroll. Actual rates vary by industry classification code, claims history, and insurer. The national average is $1.03 per $100 of payroll.
What insurance do I need for a landscaping business in South Dakota?
At minimum, you need general liability insurance. Most landscaping business businesses also carry property insurance, workers compensation (required in most states once you hire employees), and industry-specific coverage. Annual insurance costs for a landscaping business in South Dakota average $2,000.