Setting up an apprenticeship business in South Dakota
What does a South Dakota employer set up before hiring its first apprentice?
The order of setup, and why the entity comes early
Set up the business before the first hire, because several of the duties below attach to the employer of record. An apprentice hired into a sole proprietorship can be re-hired into an LLC later, but the license paperwork, the hour log and the wage records will read whatever entity signed them.
Forming the business in South Dakota is a filing, not a project. Articles of organization for a domestic LLC cost $150 filed electronically with the Secretary of State, and the filing itself is the same whether you type it or a service does.
When the trades contracts and apprentice wages are about to run through a new entity, most owners want the setup handled in one place, and Tailor Brands bundles the LLC filing, an operating agreement and annual compliance reminders in one account. The filing cost and everything else on this checklist stay the same either way.
$150A South Dakota domestic LLC's articles of organization cost $150 filed electronically online with the Secretary of State. — South Dakota Secretary of State, retrieved 2026-09-29
$0 + state feesTailor Brands publishes a $0 Lite LLC plan plus state fees that includes the LLC filing, an operating agreement and annual compliance. — Tailor Brands plans and pricing page, retrieved 2026-09-29
The LLC filing and the filings that follow it
The LLC filing has one fee with two prices. Filed electronically online, the articles of organization cost $150. Filed via paper, where the form can be filed online, a $15 paper filing fee applies, for $165 total.
An annual report follows. It costs $55 filed electronically online, or $70 by paper, and a delinquent annual report draws a $55 late fee.
The office on the filing is a decision, not a blank. The Secretary of State's LLC forms list a Statement of Change of Registered Office or Registered Agent or Both, and commercial registered agent filings exist alongside, so the address you list is the one on the public record until you change it.
If you are weighing services against filing it yourself, the formation services page prices each service's own published plan against the $150 direct route.
| Filing | Electronic | Paper |
|---|---|---|
| Articles of organization | $150 | $165, including the paper fee |
| Annual report | $55 | $70, including the paper fee |
| Delinquent annual report late fee | $55 | $55 |
$150 or $165A South Dakota LLC's articles of organization cost $150 electronically and $165 via paper, which includes the $15 paper filing fee. — South Dakota Secretary of State, retrieved 2026-09-29
$55 / $70 / $55 lateA South Dakota LLC's annual report costs $55 electronically online or $70 by paper, and delinquent annual reports draw a $55 late fee. — South Dakota Secretary of State, retrieved 2026-09-29
South Dakota LLC filings include a Statement of Change of Registered Office or Registered Agent or Both, and commercial registered agent filings are provided through the Secretary of State. — South Dakota Secretary of State, retrieved 2026-09-29
The trade credentials your hire must already carry
The entity holds the business. The credential belongs to the person. In electrical work the apprentice must register with the State Electrical Commission, at $20 biennially, before hours count toward the exams.
In plumbing, the apprentice application precedes a license fee that follows approval by email. In cosmetology and barbering there is no apprentice hire to prepare for, because training happens in the schools the commissions approve.
Put the credential check in the offer letter, not the first shift. Unlicensed electrical hours do not count toward the 8,000-hour journeyman requirement, so a hire who starts unregistered is working for experience the state will not count.
$20 biennialSDCL 36-16-21 lets the State Electrical Commission set a biennial apprentice registration fee of not more than $20, and electrical experience hours must be licensed to count. — South Dakota Electrical Commission, SDCL 36-16-21, retrieved 2026-09-29
Approved South Dakota plumbing apprentice applicants receive an email stating the license fee due, and the license is issued once the fee is paid. — South Dakota Plumbing Commission, retrieved 2026-09-29
The South Dakota Cosmetology Commission only accepts training and education documentation from schools or providers it licenses or certifies. — South Dakota Cosmetology Commission, retrieved 2026-09-29
The first-week paperwork after the hire
Two clocks start on the first day of work. The new-hire report is due at the New Hire Reporting Center within 20 days of it, covering the name and Social Security number exactly as they appear on the card.
The supervision duty starts the same day. An electrical apprentice may not work on an installation without personal supervision, and on commercial projects the supervisor must be on site, licensed.
The wage floor starts with the first paycheck. South Dakota's minimum wage is $11.85 per hour, effective January 1, 2026, and a registered program's rising wage scale sits above it. The pay page carries both.
Insurance is the one item with no deadline, because South Dakota requires none. There is no law in the state requiring any employer to carry workers' compensation insurance, and an uninsured employer may be sued in civil court by an injured worker, which for an apprentice crew is the risk worth pricing.
20 daysNewly hired employees must be reported to the New Hire Reporting Center within 20 days of the first day of work, with the name and Social Security number as they appear on the card. — South Dakota New Hire Reporting Center, retrieved 2026-09-29
Under SDCL 36-16-21, an electrical apprentice may not be allowed to work on an installation without personal supervision. — South Dakota Electrical Commission, SDCL 36-16-21, retrieved 2026-09-29
There is no law in South Dakota requiring any employer to carry workers' compensation insurance, and an uninsured employer may be sued in civil court by an injured worker. — South Dakota Department of Labor and Regulation, retrieved 2026-09-29
The records to open on day one
Open four records with the first timesheet. Hours, by date, with the work process each hour served. Supervision, with the licensed supervisor present. Wages, against the floor and the program's scale. And the apprentice's own credential, license number and expiry.
The hour record is the one the exams will read. Electrical experience counts one year as 2,000 hours, licensed, and plumbing wants at least 1,900 hours in each of four years.
A registered program adds the schedule to keep. The work process schedule allocates the approximate time spent in each major process, and it is what the program's approval stands on.
The hour-logging guide covers what each trade counts, and the hiring guide covers the full hire sequence, including the supervision rules by job site.
2,000 hoursARSD 20:44:16:06 defines one year of electrical experience as 2,000 hours. — South Dakota Electrical Commission, ARSD 20:44:16:06, retrieved 2026-09-29
1,900 hours per yearA South Dakota plumber's license requires four years as an apprentice plumber with at least 1,900 hours per year. — South Dakota Plumbing Commission, retrieved 2026-09-29
Registered apprenticeship program standards must include a work process schedule allocating the approximate time spent in each major process. — 29 CFR 29.5, Cornell LII, retrieved 2026-09-29
The yearly clocks after setup
The annual report renews the LLC, the trade licenses renew on their own cycles, and the apprentice's hours keep counting. Barber and barbershop certificates renew annually, expiring June 30 unless renewed, and electrical licenses renew on the even-numbered-year cycle with 16 hours of continuing education.
A registered program renews its standing through evaluation. Registration agencies evaluate program performance, and completion rates are compared against national averages, with technical assistance for programs falling below.
Set the reminders for all of them in one place, because the Secretary of State, the Electrical Commission and the program's registration agency do not coordinate their calendars for you. The costs page prices each of these renewals, and it is the page to re-read each January.
June 30Under SDCL 36-14-22, a registered barber's certificate renews annually on or before the first day of July and expires June 30 unless renewed. — South Dakota Board of Barber Examiners, SDCL 36-14-22, retrieved 2026-09-29
16 hoursElectrical licensees need 16 hours of continuing education with a minimum of 8 code hours to renew, on the even-numbered-year cycle. — South Dakota Electrical Commission, retrieved 2026-09-29
Registration agencies evaluate registered apprenticeship program performance, comparing completion rates against national averages and providing technical assistance to programs below them. — 29 CFR 29.6, Cornell LII, retrieved 2026-09-29
Questions
Do I need an LLC before hiring an apprentice in South Dakota?
No. Sole proprietors hire and sponsor apprentices too, and the trade credentials belong to the person, not the entity. An LLC separates contract and wage liability from your own, and costs $150 to file online if you choose it.
Does the new entity need a new EIN and payroll account?
An entity with employees needs its own employer tax identity, set up with the IRS, before the first pay run. The state's new hire reporting then runs under that identity, within 20 days of the apprentice's first day.
What is the cheapest verified route to the filing itself?
Filing the articles of organization directly with the Secretary of State at $150 electronically. A service adds preparation and follow-up on top of that same fee, and the formation services page prices each one's published plans.
Which renewal is the easiest to miss?
The annual report, because it does not follow a license cycle. It is $55 online, with a $55 late fee when delinquent, and it renews the entity rather than any trade credential.
Does the checklist change for a registered apprenticeship program?
The state side does not. The program adds its own records, the work process schedule and the rising wage scale, and its evaluation cycle, on top of this same set of filings.