South Dakota License Law

Under South Dakota law, can a real estate salesperson be an independent contractor rather than an employee of the broker?

ANo, all salespersons must be employees
BYes, a salesperson may be classified as an independent contractor for tax purposes, but the broker retains supervisory responsibility under license law✓ Correct
CYes, and independent contractor status eliminates all broker supervision requirements
DOnly broker associates may be independent contractors

Explanation

South Dakota allows salespersons to be classified as independent contractors for federal income tax purposes (no withholding, issue of 1099). However, regardless of employment classification, the broker must maintain supervisory oversight over all licensed activities under South Dakota license law.

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