How to Get a Liquor License in South Dakota?

If you're planning to open a bar, restaurant, liquor store, or any business that involves selling or serving alcohol in South Dakota, obtaining the right liquor license is a critical step. Liquor licensing in South Dakota is regulated by both the state’s Department of Revenue and local municipalities, meaning the process can be complex.
Mar 19
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Understanding South Dakota Liquor License Laws

Who Needs a Liquor License?

Any business that plans to manufacture, distribute, sell, or serve alcohol in South Dakota must obtain a liquor license. This applies to:

  • Bars and restaurants
  • Liquor stores
  • Breweries and distilleries
  • Grocery stores selling alcohol
  • Event venues serving alcohol


Since liquor licenses are issued at both the state and local levels, business owners must navigate multiple regulations before obtaining approval.

Types of Liquor Licenses in South Dakota

South Dakota offers several types of liquor licenses, depending on the nature of the business:

  1. On-Sale Liquor License – For establishments like bars and restaurants that serve alcohol for consumption on the premises.
  2. Off-Sale Liquor License – Required for businesses selling alcohol for consumption off-premises, such as liquor stores and grocery stores.
  3. Retail Wine License – For businesses that only sell wine by the glass or bottle.
  4. Temporary Liquor License – Needed for special events that involve alcohol sales.
  5. Brewer or Distiller License – Necessary for breweries and distilleries producing alcoholic beverages.


Each license type comes with its own set of rules, application requirements, and costs.

How to Apply for a Liquor License in South Dakota

Step 1: Determine Local Requirements

Liquor licensing in South Dakota is managed at both state and municipal levels. This means your first step is to check with your city or county government to understand local regulations, application fees, and availability of licenses. Some cities have quotas limiting the number of licenses they issue.

2. Meet Local Requirements

Applicants must fill out the Uniform Alcoholic Beverages License Application and submit it to their local governing body for approval. The form requires detailed business information, including:

  • Business structure (LLC, partnership, sole proprietorship, etc.)
  • Business address
  • Type of liquor license being applied for
  • Proof of local zoning compliance

Step 3: Pay the Licensing Fees

Liquor license fees in South Dakota vary by type and location. Here are estimated costs:

  • On-Sale Liquor License: $1,500 - $200,000 (depends on location and availability)
  • Off-Sale Liquor License: $500 - $5,000
  • Temporary License: $25 - $100 per event


Since some cities auction licenses due to high demand, the costs can be significantly higher in certain areas.

Step 4: Background Checks and Inspections

Applicants must undergo background checks, and their business premises must pass inspections to ensure compliance with health, safety, and zoning regulations.

Step 5: State Review and Final Approval

Once the local government approves the application, it is forwarded to the South Dakota Department of Revenue for state-level approval. Processing times can take several weeks, so it’s crucial to plan ahead.

Difference Between Liquor License and Alcohol Training Certification?

Many people confuse a liquor license with alcohol training certification, but they serve different purposes:

  • Liquor License: A legal permit issued by the state and local government that allows businesses to sell or serve alcoholic beverages. It is required for establishments like bars, restaurants, and liquor stores to operate legally.

  • Alcohol Training Certification: A training program that educates bartenders, servers, sellers, and managers on responsible alcohol service. This certification ensures compliance with alcohol laws, reduces liability risks, and promotes safe alcohol consumption.


While a liquor license grants permission to sell alcohol, alcohol training certification ensures that employees handle alcohol service responsibly and legally. Business owners should ensure that all staff members complete South Dakota Alcohol Awareness Training to comply with state regulations and protect their business.

Common Challenges in Obtaining a Liquor License

1. Limited Availability

Some South Dakota municipalities have quotas on the number of liquor licenses they issue, making it difficult to obtain one in high-demand areas.

2. High Costs

Certain licenses, especially on-sale licenses in competitive cities, can be costly due to bidding wars and limited availability.

3. Lengthy Approval Process

Between local and state reviews, it can take several months to get approval, delaying business openings.

4. Compliance with Regulations

Business owners must navigate zoning laws, health inspections, and alcohol service laws to remain compliant.

5. Staff Certification and Training

All alcohol servers, bartenders, and managers must complete South Dakota Alcohol Awareness Training to legally serve alcohol. This certification ensures that staff members understand responsible alcohol service and legal requirements.

Trends and Innovations in Alcohol Licensing

  1. Digital Applications – Many states, including South Dakota, are streamlining licensing processes with online applications and renewals.
  2. Increased Alcohol Delivery Services – Regulations are evolving to accommodate alcohol delivery and curbside pickup options.
  3. Stricter Compliance and Training Requirements – Many states are reinforcing alcohol awareness training mandates to prevent over-serving and underage drinking.

Practical Tips for Getting Your Liquor License Faster

  1. Start Early – Since the process can take months, begin your application as soon as possible.
  2. Consult Local Officials – Understanding municipal regulations ahead of time can prevent unnecessary delays.
  3. Prepare Financially – Ensure you have enough funds to cover licensing fees, which can be substantial in some areas.
  4. Get Your Staff Certified – Completing South Dakota Alcohol Awareness Training early ensures your team is ready to serve alcohol legally.
  5. Keep Up with Renewals – Most licenses must be renewed annually, so mark deadlines on your calendar to avoid penalties.

Get Licensed and Stay Compliant

Obtaining a liquor license in South Dakota requires careful planning, adherence to regulations, and patience. While the state and local governments oversee licensing, business owners must also ensure that their staff is properly trained. Enrolling in South Dakota Alcohol Awareness Training is a critical step to ensure compliance, protect your business, and maintain responsible alcohol service. If you’re preparing to apply for a liquor license, start early, stay informed, and make sure your team is fully certified. Ready to train your staff? Get certified today!