South Dakota Surety Bond Overview
To get a license and run a business legally in South Dakota you may need to obtain a surety bond. If you are a contractor, you might also need to get bonded before you can perform work on any public or private projects.
Why are surety bonds required?
Surety bonds act like a financial guarantee agreement. By getting bonded, the business or individual agrees to comply with various legal requirements. If they violate these requirements, the bond is there to provide compensation to anyone who is harmed as a result of this violation.
You can learn a lot more about how bonds work from our very detailed 'What is a surety bond' page.
Do you already know what kind of bond you need? Find it in the table below and follow the application link. To learn more about the different types of bonds in the state first, see the sections underneath the table.
Find the Bond You Need
The table below contains a list of only the most popular surety bonds. If you can't find yours, fill out our online application and select "Not in the list".
|Investment Advisor (Blue Sky) Bond||Division of Securities||Uniform Surety Bond||Apply Now|
|Insurance Agents/Brokers Bond||SD Dept. Labor & Regulation Division of Insuranc||Discount Medical Plans Bond||Apply Now|
|Mortgage Broker (1st & 2nd Mortgages) Bond||Division of Banking, State of South Dakota||Mortgage Company Bond||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Division of Banking||Mortgage Lender||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||DIVISION OF BANKING||MORTGAGE LENDER||Apply Now|
|Mortgage Lender/Banker (1st & 2nd Mort.) Bond||Division of Banking||Money Lender Bond||Apply Now|
|Auto & Mobile Home Dealers (New & Used) Bond||Division of Motor Vehicles||Vehicle Dealer||Apply Now|
|Auto & Mobile Home Dealers (Used Only, No New) Bond||Division of Motor Vehicles||Vehicle Dealer||Apply Now|
|Sales, Use & Consumer Tax Bond||South Dakota Department Of Revenue and Regulations||South Dakota Department of Revenue & Regulation Un||Apply Now|
|Appraisal Management||Department of Labor and Regulation||Appraisal Management Company Registration Bond||Apply Now|
Types of South Dakota Surety Bonds
When you are asked to get bonded, you will most likely require one the following three types of bonds:
- To obtain your business license, you might have to post a license and permit bond.
- For construction contractors bidding on public or private projects, construction bonds are a usual requirement.
- Less often, a state court might ask you to provide court bonds.
A complete overview of all South Dakota surety bond types is presented below.
License & Permit Bonds
Many kinds of businesses need to get licensed with a state, local, or city authority that governs their trade. A common element of this process is posting a license and permit bond.
Similarly to other states, in South Dakota surety bonds play an important role in ensuring the legal operation of companies. Bonds protect the interests of the state and its citizens against fraudulent activities.
You can think of your surety bond as an extra line of credit for your business. In case you do not abide by applicable rules, a claim can be made on your bond by an affected party. Proven claims can have serious financial consequences for bonded parties, such as reimbursement of claimants up to the penal sum of the bond.
The typical South Dakota license and permit bonds include:
Auto dealer bonds
- Obligee: [South Dakota Division of Motor Vehicles]
- Bond amount: $25,000
Mortgage broker surety bond
- Obligee: South Dakota Division of Banking
- Bond amount: $25,000
Freight broker bonds
- Obligee: Federal Motor Carrier Safety Administration
- Bond amount: $75,000
- Expiration date: Coincides with year of licensing