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Money Lenders — Requirements for Licensure
Each money lender location must be separately licensed. All licenses expire on December 31 of each year and a renewal application must be filed. The initial and annual renewal fees are set by Administrative Rule of South Dakota (ARSD) 20:07:20:01 and ARSD 20:07:20:02.
State law requires a surety bond in an amount not to exceed the total of ten thousand dollars ($10,000) for the first license and two thousand five hundred ($2,500) for each additional license. Proof of said surety bond needs to be submitted with the application for Money Lending License. The bond shall be issued by a surety company qualified to do business as a surety in South Dakota. The bond shall be in favor of the State of South Dakota for the use of this state.
South Dakota does not currently have any educational, net worth or physical presence requirements for money lenders.
If you are a foreign corporation, you will need to contact the Secretary of State's office at 605.773.3537 to determine if a Certificate of Authority is required for you to do business in South Dakota.
Money Lenders are subject to the South Dakota bank franchise tax. The bank franchise tax is a net income tax under SDCL 10-43. If you have questions about the bank franchise tax you may contact the Special Taxes office at 605.773.3311.
Any changes to application data, such as change of address, contact person, ownership, etc. must be reported to the Division of Banking via an amendment on the application form.