Free · official rates · checked September 25, 2026
Starting a business on unemployment in South Dakota
Here’s what South Dakota allows while you’re on unemployment, and how to build your plan alongside your job search.
South Dakota
No Self-Employment Assistance
Becoming self-employed full time can stop or deny benefits, and seeking self-employment does not count as work search. Part-time self-employment hours and earnings (before expenses) must be reported each week; you get nothing for any week you work 40+ hours or earn at least your weekly benefit amount. Source
Job search: At least two work search activities every week you request payment (applications, résumés, interviews or DLR-approved reemployment services), with employer details entered on the weekly request for payment and kept on a tracking sheet for audit; you are auto-registered in SDWORKS when you file but must be registered with the workforce agency within 14 days.
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Self-Employment Assistance in South Dakota
No. South Dakota doesn’t run Self-Employment Assistance, so unemployment is for people looking for work.
How self-employment affects your benefit
Becoming self-employed full time can stop or deny benefits, and seeking self-employment does not count as work search. Part-time self-employment hours and earnings (before expenses) must be reported each week; you get nothing for any week you work 40+ hours or earn at least your weekly benefit amount.
75% of gross earnings over $25 is deducted from your weekly benefit; no payment if earnings equal or exceed the weekly benefit amount or you work 40+ hours.
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Your weekly job search
At least two work search activities every week you request payment (applications, résumés, interviews or DLR-approved reemployment services), with employer details entered on the weekly request for payment and kept on a tracking sheet for audit; you are auto-registered in SDWORKS when you file but must be registered with the workforce agency within 14 days.
Pontia keeps your job-search record for you and links to SDWORKS, so your plan and your search run side by side.
Other help in South Dakota
- South Dakota Division of Rehabilitation Services (Department of Human Services): DRS provider service descriptions list customized self-employment as a customized-employment option; no standalone VR self-employment policy page was found.
- Medicaid: South Dakota expanded Medicaid, so the new work requirement applies to expansion adults: 80 hours or $580 net a month, and hours on your business count. Starts 1 Jan 2027: new Medicaid Expansion applicants must show 80 hours of community engagement in the month before applying; current enrollees are checked at their first regular renewal in 2027.
- SBA Microloans of up to $50,000, and free advice from your local SBDC and SCORE mentors.
- On SSI or SSDI: PASS and the SSDI trial work period let you test a business.
Questions
Can I collect unemployment while starting a business in South Dakota?+
No. South Dakota doesn’t run Self-Employment Assistance, so unemployment is for people looking for work. Becoming self-employed full time can stop or deny benefits, and seeking self-employment does not count as work search. Part-time self-employment hours and earnings (before expenses) must be reported each week; you get nothing for any week you work 40+ hours or earn at least your weekly benefit amount.
How many job contacts a week does South Dakota require?+
At least two work search activities every week you request payment (applications, résumés, interviews or DLR-approved reemployment services), with employer details entered on the weekly request for payment and kept on a tracking sheet for audit; you are auto-registered in SDWORKS when you file but must be registered with the workforce agency within 14 days.
How much is unemployment in South Dakota?+
Between $28 and $575 a week in 2026, for up to 15-26 weeks. Your own amount is on your monetary determination.
What other help is there to start a business in South Dakota?+
Free advice from your local SBDC and SCORE mentors, SBA microloans of up to $50,000, and, if you have a disability, South Dakota Division of Rehabilitation Services (Department of Human Services) can fund a self-employment plan. On SSI or SSDI, PASS and the trial work period let you test a business.
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Cite this page
"Start a business on unemployment in South Dakota (2026)", Pontia, https://pontia.xyz/us/south-dakota/ (updated September 25, 2026)
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