South Dakota Contractors are required under the Code of Laws of South Dakota section 10-46A or 10-46B to file a South Dakota Contractors Excise Tax Bond as a condition of licensure.
A surety bond protects the party requesting the bond, the Obligee, against any financial losses as a result of poor financial decisions, damages, unethical decisions, or a failure to follow state and local laws on the part of you, the Principal. The South Dakota Contractors Excise Tax Bond holds you accountable for your business decisions.
By possessing a South Dakota Contractors Excise Tax Bond, you are telling your Obligee that you can be trusted as a Principal and that you stand behind your business decisions.