See our Gun Dealers policy summary for a comprehensive discussion of this issue.
Federal law requires firearms dealers to obtain a license from the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), although resource limitations prevent the ATF from properly overseeing all its licensees.
South Dakota does not require firearms dealers to obtain a state license. South Dakota law requires firearms dealers to ensure that handguns are securely wrapped and unloaded when delivered to the purchaser.1 South Dakota also prohibits a dealer from selling a handgun unless the purchaser is personally known to the dealer or presents clear evidence of his or her identity.2 South Dakota has no other significant laws regulating firearms dealers.
For laws applicable to both licensed and private firearm sellers, please see the South Dakota Private Sales section. For laws requiring firearms dealers to conduct a background check on purchasers, see the South Dakota Background Checks section.