If you are starting a home-based business, you will need to be aware of any restrictions on the operation of your business, and any licenses or permits that will be required—whether you are baking pies, washing cars, babysitting children, grooming dogs, or providing counseling services. Some of the common sources and types of these restrictions, licenses, and permits are: (1) local zoning laws—including for signs for your business; (2) restrictions from your HOA (homeowners’ association), property deed, or residential lease agreement; (3) tax permit (sales and use tax) or resale/reseller’s certificate; (4) occupational license; (5) city or county business license; and (6) health and safety permit.

In South Dakota, starting a home-based business requires compliance with various regulations. Local zoning laws may restrict the type of business activities you can conduct in a residential area, including the use of signs. It's important to check with your local planning or zoning office for any specific restrictions. Additionally, if you live in a community with a homeowners' association (HOA), you should review the HOA's covenants, conditions, and restrictions (CC&Rs) as they may have rules about operating a business from your home. Your property deed or residential lease agreement may also impose limitations. For tax purposes, you may need a tax permit for sales and use tax if you are selling goods or services, and a resale or reseller's certificate if you are buying products for resale. Certain professions require an occupational license, which is regulated by the state. A city or county business license may also be necessary, depending on your location and the nature of your business. Lastly, if your business involves food preparation, childcare, or other activities that impact health and safety, you may need to obtain relevant permits from the state or local health department. It's advisable to consult with an attorney to ensure you meet all legal requirements for your home-based business.