Written contract rules in South Dakota
South Dakota does not impose a blanket statutory requirement that contractors provide a written contract. Many municipalities and trade-specific licensing boards still require one. Best practice — and what most clients expect — is to issue a written agreement for any project over a few thousand dollars.
Right-to-cancel notice
For home-improvement and door-to-door sales, South Dakota requires the contract to include a written notice of the consumer\u2019s right to cancel within 72 hours. The notice must be conspicuously displayed and accompanied by a separate cancellation form.
Late fees on past-due invoices
The maximum late fee a contractor may charge in South Dakota is 1.5% per month under S.D. Codified Laws §54-3-4. The fee must be disclosed in the contract or on the invoice itself before it can be enforced. Default 10%/yr; no usury cap (contract rates allowed).
Required invoice fields
- Contractor business name, address, and phone number
- Contractor license number (where state law or trade requires)
- Customer name and project address
- Itemized scope of work, materials, and labor
- Total price, payment schedule, and due date
- Sales tax line (4.20% SD state plus local)
- Late-fee disclosure (max 1.5% per month under S.D. Codified Laws §54-3-4)