Minnesota business licensing guide
Last updated: August 21, 2026
Minnesota does not send every business to one simple statewide “general business license” application. The state uses activity-based licenses, tax accounts, Secretary of State filings, and local city or county rules.
The right answer depends on what you do, where you do it, whether you sell taxable goods or services, whether you have employees, and whether your city or county licenses your type of business.
The short answer
Most Minnesota businesses should start with three checks: the Minnesota Secretary of State for business filings, the Minnesota Department of Revenue for tax accounts, and Minnesota eLicensing for state licenses tied to your activity.
Then check your city, county, or township. Minnesota’s own business guidance says many local governments require licenses for certain kinds of businesses, and some local rules are handled by a city licensing department while others may be handled by a clerk, zoning office, building office, or local health agency.
Important Minnesota business updates for 2026
State filing costs: A domestic Minnesota LLC currently costs $135 by mail or $155 online or in person. Most active LLCs and business corporations can file their annual renewal for $0, generally by December 31. An Assumed Name filing is $30 by mail or $50 online or in person, and its annual renewal is also $0.
Sales tax: Minnesota’s general state sales tax rate is 6.875%, with local taxes added where they apply. Remote sellers generally lose the small-seller exception when, over the prior 12 months, they have more than $100,000 in Minnesota retail sales or 200 or more Minnesota retail sales.
Employers: Minnesota Paid Leave launched January 1, 2026. The regular 2026 premium rate is 0.88% of covered wages, while qualifying small employers receive a 0.66% rate. The 2026 unemployment-insurance taxable wage base is $44,000, and Minnesota’s statewide minimum wage is $11.41 an hour.
Business filing activity: The Secretary of State’s latest posted 2026 filing table shows 36,216 new Minnesota LLC filings, 1,782 business corporation filings, 1,531 nonprofit corporation filings, and 8,967 Assumed Name filings through June. These are filing counts, not a count of businesses that are open, licensed locally, or still operating.
Federal BOI: FinCEN’s August 2026 final rule exempts U.S.-created companies from federal beneficial ownership information reporting. Certain foreign companies registered to do business in the United States may still have BOI duties.
Minnesota facts box
| Question | Minnesota answer | Official place to check |
|---|---|---|
| Is there one statewide general business license? | Minnesota uses activity-based state licensing. DEED points businesses to Minnesota eLicensing to search state licenses, permits, registrations, and certifications. Local governments may still require separate licenses. | Minnesota DEED licenses and permits |
| Where do many businesses file the business entity? | The Minnesota Secretary of State says almost all businesses in Minnesota must register with its office. Entity type matters. | Minnesota Secretary of State business registration |
| What does it currently cost to form a Minnesota LLC? | The Secretary of State currently lists domestic LLC Articles of Organization at $135 by mail or $155 online or in person. Annual renewal is $0 for an active domestic LLC. | Minnesota Secretary of State fee schedule |
| What does Minnesota call a DBA? | Minnesota uses the term “Assumed Name.” Some businesses file a Certificate of Assumed Name and must publish it in a qualified legal newspaper for two consecutive issues. | Minnesota Assumed Name / DBA |
| What tax account is needed before taxable sales? | Before making taxable sales in Minnesota, a business must register for a Minnesota Tax ID Number and a Sales and Use Tax account. | Minnesota Department of Revenue sales tax registration |
| What is Minnesota’s general sales tax rate? | The state general rate is 6.875%. Local and special local taxes can increase the rate for a particular sale or location. | Minnesota Department of Revenue taxes and rates |
| What should employers check? | Many employers need a federal EIN, Minnesota Tax ID Number, withholding tax account, Minnesota UI/Paid Leave Employer Account, workers’ compensation coverage, and new-hire reporting. | Minnesota UI and Paid Leave employer portal |
| What changed for employers in 2026? | Minnesota Paid Leave began January 1, 2026. The regular premium rate is 0.88% of covered wages; qualifying small employers receive a 0.66% rate. The 2026 UI taxable wage base is $44,000, and the statewide minimum wage is $11.41 per hour. | Minnesota Paid Leave, UI tax rates, and minimum wage |
| Are food businesses handled by one agency? | No. Minnesota food licensing may involve the Minnesota Department of Agriculture, Minnesota Department of Health, or a delegated city or county agency, depending on the food type and location. | MDH food, pools, and lodging licensing |
Quick start: what to check first
- Write down your business activity. Be specific. “Online store,” “mobile food unit,” “cleaning service,” “massage business,” “cottage food producer,” and “contractor” may lead to different rules.
- Choose your business structure. A sole proprietor, LLC, corporation, partnership, and nonprofit may file different documents.
- Search the Minnesota Secretary of State. Use the Secretary of State’s business filing tools to register the entity or file an assumed name if needed.
- Check Minnesota eLicensing. Search by activity, agency, license name, or keyword to see if Minnesota has a state license for your work.
- Register with the Department of Revenue if needed. If you make taxable sales, need withholding, or have other state tax accounts, check Minnesota Department of Revenue registration.
- Check your city, county, or township. Ask about local business licensing, zoning, home occupation rules, building permits, health permits, fire inspections, signage, and certificate of occupancy rules.
- Do not open before required approvals. Some licenses require plan review, inspection, background review, city council action, or proof of insurance.
Tip: Search by your real activity, not only the words “business license.” In Minnesota, the official item may be called a Sales and Use Tax account, Certificate of Assumed Name, Retail Food Handler license, Food Handler License, lodging license, local retail registration, city license, permit, or registration.
Separate the license layers before you apply
Business licensing in Minnesota is layered. One filing does not usually cover every layer.
| Layer | What it may cover | Where to start |
|---|---|---|
| Federal | EIN, federal tax rules, and federal permits for activities such as alcohol, firearms, aviation, agriculture imports, fish and wildlife, and other federally regulated work. | IRS EIN information, SBA federal licenses and permits, and FinCEN BOI guidance |
| State of Minnesota | Secretary of State business filings, Minnesota Tax ID Number, Sales and Use Tax account, withholding tax, state professional licenses, food licenses, cannabis licenses, Department of Labor and Industry licenses, and other agency permits. | Minnesota eLicensing, Secretary of State, and Department of Revenue |
| County | Some health, food, lodging, septic, land use, short-term rental, tobacco, cannabis retail registration, or local permits, depending on the county and whether authority is delegated. | Your county website, county public health agency, county environmental services office, or county zoning office |
| City, township, or local government | Business licenses for certain activities, zoning approval, home occupation rules, building permits, sign permits, fire review, certificate of occupancy, local cannabis retail registration, and local inspections. | Your city clerk, licensing department, planning and zoning office, building department, or fire department |
| Private platforms | Marketplace, delivery app, payment processor, landlord, event, farmers market, or insurer requirements. These do not replace government rules. | Your platform, contract, lease, market rules, or insurance carrier |
Important: An LLC is not the same thing as a business license. A Minnesota Tax ID Number is not the same thing as a local permit. A city license does not replace a state professional license. Check each layer separately.
Minnesota state registrations most businesses should understand
Business entity filing with the Minnesota Secretary of State
The Minnesota Secretary of State is the main filing office for many business entities. Its registration guide says almost all businesses in Minnesota must register with that office, and you must choose a structure before you file.
Common entity types include LLCs, corporations, nonprofits, partnerships, limited partnerships, and sole proprietorship-related filings. The form, fee, name rules, and ongoing renewal rules depend on the entity type.
For a common example, the current Secretary of State fee schedule lists domestic LLC Articles of Organization at $135 by mail or $155 online or in person. The annual renewal for an active domestic LLC is currently $0. The Secretary of State says most entities renew yearly, generally by December 31, and missing the renewal can lead to administrative dissolution and a reinstatement fee.
Start with the Secretary of State’s How to register your business page, current filing fee schedule, and renewal guidance.
Assumed Name / DBA filings
Minnesota uses “Assumed Name” for what many people call a DBA. A person using a business name that is not their true full first and last name may need to file. A corporation, LLC, or limited partnership using a name other than its legal name may also need to file.
Minnesota has two details many new owners miss:
- After filing a Certificate of Assumed Name or an amendment, the business must publish it in a qualified legal newspaper for two consecutive issues in the county where the principal place of business is located.
- An annual renewal is required to maintain good standing.
The current Secretary of State fee schedule lists an original Certificate of Assumed Name at $30 by mail or $50 online or in person, with an annual renewal fee of $0. If the filing becomes inactive, the current reinstatement fee is $65 by mail or $85 online or in person.
After publication, keep the newspaper’s affidavit of publication with your records. The Secretary of State says you do not send that affidavit to its office. Most annual renewals are due by December 31.
Minnesota Tax ID Number and Sales and Use Tax account
If you make taxable sales in Minnesota, the Department of Revenue says you must register for a Minnesota Tax ID Number and a Sales and Use Tax account before making taxable sales.
Minnesota’s general state sales tax rate is 6.875%. Local and special local taxes can increase the rate, so do not assume the same rate applies everywhere in Minnesota. Check the Department of Revenue’s Taxes and Rates page or rate calculator for the sale location.
Out-of-state remote sellers should also check Minnesota’s economic-nexus rules. The Department of Revenue says the small-seller exception no longer applies when, over the prior 12-month period, the seller has more than $100,000 in Minnesota retail sales or 200 or more Minnesota retail sales, subject to the state’s counting rules and exclusions.
Employer setup
If you hire employees, Minnesota has several employer steps. The Minnesota Department of Revenue’s new employer guide says Minnesota employers generally must register for a federal EIN, Minnesota Tax ID Number, and Minnesota UI Employer Account number.
You may also need a withholding tax account before withholding tax from wages. Minnesota Unemployment Insurance says an employer that pays covered wages in Minnesota must register with the UI Program after first covered wages are paid, but before the due date of the first required quarterly wage detail report.
Workers’ compensation is separate. Minnesota generally requires employers to provide workers’ compensation insurance unless a specific statutory exemption applies.
Important 2026 employer change: Minnesota Paid Leave launched January 1, 2026. Covered employers use the joint UI/Paid Leave employer system for wage reporting and premium payments. The regular 2026 Paid Leave premium rate is 0.88% of covered wages. Qualifying small employers with 30 or fewer employees and average wages below the statutory threshold receive a 0.66% rate.
For unemployment insurance, the 2026 taxable wage base is $44,000 per employee. New-employer rates vary by industry. Minnesota also requires employers to report newly hired, rehired, and returning employees to the New Hire Reporting Center generally within 20 days.
The statewide minimum wage is $11.41 per hour in 2026. Minneapolis and St. Paul have higher local minimum-wage rules, so employers in those cities should check the local rate.
| Item | What it does | Agency |
|---|---|---|
| Business entity filing | Creates or registers the legal business entity, depending on the structure. | Minnesota Secretary of State |
| Certificate of Assumed Name | Registers a public business name used instead of the owner’s true name or the entity’s legal name. | Minnesota Secretary of State |
| Minnesota Tax ID Number | Identifies the business for Minnesota tax accounts. | Minnesota Department of Revenue |
| Sales and Use Tax account | Allows a business to collect and remit Minnesota sales tax when taxable sales apply. | Minnesota Department of Revenue |
| Withholding tax account | Used by employers to withhold and send Minnesota income tax from employee wages. | Minnesota Department of Revenue |
| UI / Paid Leave Employer Account | Used for unemployment-insurance wage reporting and, for covered employers, Minnesota Paid Leave wage reporting and premium payments. | Minnesota UI and Paid Leave employer system |
| Workers’ compensation insurance | Coverage for employees injured at work, when required. | Minnesota Department of Labor and Industry |
City, county, and township rules can change the answer
After the state-level checks, contact the local government where the business will operate. This is especially important for storefronts, home-based businesses, food businesses, mobile businesses, contractors, short-term rentals, cannabis businesses, alcohol, tobacco, massage, body art, lodging, signage, and businesses that change how a space is used.
Minnesota local rules are not uniform. For example, Rochester says there is no general business license required by the City of Rochester, but certain specific business types need a city license. Bloomington says it has no general business license, but the City Clerk issues licenses required by City Code. Duluth says it does not issue general business licenses, but certain business activities must be licensed. Maple Grove says it does not license businesses operating in the city generally, but it licenses certain activities and notes certificate of occupancy and home-business rules.
Do not skip zoning. A business can be properly registered with the state and still be blocked by local zoning, building, lease, fire, health, or home occupation rules.
State and industry licenses to check in Minnesota
Minnesota eLicensing is the broad state search tool. It includes licenses, permits, registrations, and certifications from many state agencies. Use it as a starting point, then confirm details with the agency that actually issues the license.
| Business activity | Minnesota-specific issue | Official starting point |
|---|---|---|
| Restaurants, bars, food carts, mobile food units, special event food stands, lodging, public pools | MDH and delegated local public health agencies license and inspect many food, pool, and lodging establishments. The location determines the licensing agency. | Minnesota Department of Health FPLS licensing |
| Retail food, grocery, convenience stores, bakeries, meat markets, some vending, wholesale food | MDA licenses many food businesses. MDA says food licensing changed as of August 1, 2025, with multiple classifications simplified into a Food Handler license. | Minnesota Department of Agriculture food licenses |
| Cottage food | MDA has a Cottage Food Producer Registration process. Eligibility, food type, training, local zoning, and annual sales tier matter. | MDA Cottage Food Producer Registration |
| Construction trades, building permits, plumbing, electrical, mechanical, workers’ compensation compliance | The Department of Labor and Industry handles many license, permit, plan review, code, and workers’ compensation topics. Local registration may also apply. | Minnesota Department of Labor and Industry |
| Cannabis and lower-potency hemp edible businesses | The Office of Cannabis Management handles state cannabis licensing. OCM says some applications are through Accela and businesses must be physically located in Minnesota to receive a license. Local retail registration may also apply. | Minnesota Office of Cannabis Management application process |
| Alcohol, tobacco, gambling, transportation, health professions, childcare, insurance, financial services, and other regulated fields | These may involve a state board, state agency, city license, county approval, or federal permit. | Minnesota eLicensing |
If you run the business from home
A home address does not remove the need to check licensing. Home-based businesses may still need state filings, assumed name filings, tax accounts, industry licenses, and local zoning approval.
Ask your city, county, or township about:
- Home occupation rules
- Whether customers, employees, deliveries, equipment, signs, vehicles, or inventory are allowed
- Noise, traffic, parking, storage, and exterior-change limits
- Food production restrictions, if you make or store food
- Whether your landlord, HOA, or lease has separate rules
MDA’s wholesale food business guidance also notes that all businesses in Minnesota, including rural businesses, must comply with local zoning requirements.
Minnesota city starting points
Use the city or county where the business will operate. If your business is mobile, ask every city or county where you will sell, park, serve customers, or attend events.
BusinessLicenseGuide city pages already found
Official local starting points
| City | Official licensing starting point | What to watch for |
|---|---|---|
| Minneapolis | City of Minneapolis business licenses | Minneapolis lists many categories, including alcohol, tobacco, animal-related businesses, body art, massage, tanning, contractors, food, lodging, vehicles, and more. |
| Saint Paul | City of Saint Paul business licenses and permits | Saint Paul uses PAULIE for permits, licenses, inspections, and complaints. The city also says the state and Ramsey County may require additional licenses. |
| Rochester | City of Rochester business licenses | Rochester says it has no general business license, but certain specific business types need a city license. |
| Bloomington | City of Bloomington business licensing | Bloomington says it has no general business license, but licenses required by City Code still apply. |
| Duluth | City of Duluth licenses and permits | Duluth says it does not issue general business licenses, but certain business, hospitality, animal, liquor, and other activities require licensing. |
| Brooklyn Park | City of Brooklyn Park business licenses | Brooklyn Park lists licenses and renewals for certain activities, including body art, food, home business, lodging, and rental licenses. |
| Maple Grove | City of Maple Grove business licenses | Maple Grove says it does not license businesses generally, but it licenses certain activities and points home businesses to local regulations. |
Official Minnesota agency directory
- Minnesota DEED licenses and permits — plain-English state guidance for state and local licensing checks.
- Minnesota eLicensing — searchable portal for many state licenses, permits, registrations, and certifications.
- Minnesota Secretary of State Start a Business — business formation, registration, name, renewal, and filing resources.
- Minnesota Secretary of State Assumed Name / DBA — Certificate of Assumed Name rules, renewal, forms, and publication note.
- Minnesota Department of Revenue business taxes — Minnesota Tax ID Number, sales tax, withholding, and business tax accounts.
- Minnesota Unemployment Insurance Program — employer registration and wage reporting.
- Minnesota Department of Labor and Industry — worker protections, workers’ compensation, construction codes, permits, and licenses.
- Minnesota Department of Agriculture food licenses — food business licensing, Food Handler license updates, retail and wholesale food.
- Minnesota Department of Health food, pools, and lodging licensing — food, beverage, lodging, pools, plan review, and delegated local agencies.
- Minnesota Office of Cannabis Management business resources — cannabis and lower-potency hemp edible licensing information.
- Minnesota Secretary of State current fee schedule — current formation, assumed-name, renewal, and reinstatement fees.
- Minnesota Secretary of State renewal guidance — annual renewal timing and reinstatement guidance.
- Minnesota Secretary of State 2026 new business filings — current filing counts by business type.
- Minnesota Department of Revenue taxes and rates — 6.875% general state rate and local-tax guidance.
- Minnesota Department of Revenue remote seller guidance — economic-nexus and small-seller thresholds.
- Minnesota UI and Paid Leave employers — employer registration, UI reporting, and Paid Leave reporting.
- Minnesota UI 2026 tax rates — 2026 taxable wage base and tax-rate factors.
- Minnesota Paid Leave 2026 premium rate — statewide launch and regular premium rate.
- Minnesota Paid Leave small-employer premium rate — reduced rate and qualification rules.
- Minnesota Department of Labor and Industry minimum wage — current statewide minimum wage and local reminders.
- Minnesota DEED hiring checklist — new-hire reporting and employer setup steps.
- FinCEN beneficial ownership information — current federal BOI reporting rule.
- IRS Employer Identification Number — federal EIN information.
- U.S. Small Business Administration licenses and permits — federal license categories and general license overview.
Step-by-step Minnesota business license checklist
- Describe the business in one sentence. Include what you sell or do, where customers are served, whether you are online, home-based, mobile, storefront, food-related, or employee-based.
- Choose the legal structure. Decide whether you are operating as a sole proprietor, LLC, corporation, partnership, nonprofit, or another structure.
- Search and file with the Minnesota Secretary of State. Register the business entity if required. Check name rules before paying a filing fee.
- File a Certificate of Assumed Name if needed. If you use a name that must be registered, file with the Secretary of State, publish as required, keep the affidavit, and track annual renewal.
- Get an EIN if needed. Many employers, LLCs, corporations, partnerships, and other entities need an EIN. Some sole proprietors may still choose to get one for banking or state tax reasons.
- Register for Minnesota tax accounts. If you make taxable sales, register for a Minnesota Tax ID Number and Sales and Use Tax account before selling. Employers should check withholding tax registration.
- If you have workers, check the 2026 employer stack. Register for the UI/Paid Leave employer system when required, confirm workers’ compensation, report new hires, and check the $11.41 statewide minimum wage plus any higher local rule.
- Search Minnesota eLicensing. Search by keyword and activity. Save the issuing agency, application link, fee page, and renewal notes.
- Check industry agencies. Food, lodging, cannabis, construction, health, alcohol, tobacco, childcare, transportation, and professional services may have extra rules.
- Check the local office. Contact the city, county, or township about business licensing, zoning, certificate of occupancy, signs, building permits, fire review, and health permits.
- Do not rely on one approval. Keep a list of every approval, filing, account, license, permit, renewal date, inspection, and office contact.
Common mistakes to avoid in Minnesota
- Calling every requirement a business license. In Minnesota, you may be dealing with an assumed name, tax account, Food Handler license, UI account, city permit, zoning approval, or other item.
- Forming an LLC and stopping there. An LLC filing does not replace tax registration, city licensing, zoning, food permits, employer registration, or professional licensing.
- Skipping the Assumed Name publication step. Minnesota requires publication after certain assumed name filings and amendments. Keep the affidavit from the newspaper.
- Starting taxable sales before registering with Revenue. The Department of Revenue says registration is required before making taxable sales.
- Assuming your city has the same rule as another city. Rochester, Bloomington, Duluth, Maple Grove, Minneapolis, and Saint Paul use different local licensing patterns.
- Forgetting zoning for a home business. A home-based business can still be limited by city, county, township, landlord, HOA, or food-safety rules.
- Using old food license terms. MDA food licensing changed in 2025. Check the current MDA page before choosing a license path.
- Ignoring local health delegation. Food, pools, and lodging licenses may be handled by MDH or a delegated local health agency depending on the location.
- Opening before inspection or plan review. Food, lodging, building, fire, liquor, and some local licenses may require approval before opening.
- Missing Minnesota Paid Leave. Paid Leave began in 2026 and uses the joint UI/Paid Leave employer system for covered employers. Do not assume a normal payroll setup automatically completed this step.
What to ask when you contact the agency
Before you call or email, write down your business type, exact city or township, county, address or general location, whether you are home-based, mobile, online, or storefront, and what products or services you will sell.
Phone or email script
Hello. I am trying to confirm what approvals I need before operating a [business type] in [city or township], [county], Minnesota. The business will be [home-based / mobile / storefront / online] at [address or general location]. I plan to sell or provide [products or services]. Can you tell me whether I need a local business license, zoning approval, certificate of occupancy, building or fire permit, health license, tax registration, state license, or another approval? If your office does not handle this, which office should I contact next?
Ask the agency to point you to the current application page or fee page instead of relying only on a verbal answer.
- Write down the office name and the person or department that responded.
- Write down the exact license, permit, registration, or approval name.
- Ask whether zoning must be approved before signing a lease or opening.
- Ask whether plan review, inspection, background review, insurance, bond, or city council approval is required.
- Ask for the application link, fee page, renewal period, and expected next step.
- Ask whether another city, county, state, or federal agency must also approve the business.
Related business license guides
Start with the closest next-step guides, then explore other BLG location and licensing resources.
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FAQ
Does Minnesota have a statewide general business license?
Minnesota does not send every business to one simple statewide general business license application. State licensing is usually based on the business activity. Use Minnesota eLicensing to search state licenses, permits, registrations, and certifications, and then check your city, county, or township for local rules.
Do I need to register my business with the Minnesota Secretary of State?
Many businesses do. The Minnesota Secretary of State says almost all businesses in Minnesota must register with its office. The exact filing depends on your structure, such as LLC, corporation, partnership, nonprofit, or assumed name.
What is a DBA called in Minnesota?
Minnesota usually uses the term Assumed Name. A business may need to file a Certificate of Assumed Name when it operates under a name that is not the owner’s true full name or the entity’s legal name. Minnesota also requires annual renewal and publication for certain assumed name filings.
Do I need a Minnesota seller’s permit?
Minnesota generally refers to this as a Minnesota Tax ID Number and Sales and Use Tax account. The Minnesota Department of Revenue says you must register for these before making taxable sales in Minnesota.
Do home-based businesses need a license in Minnesota?
They may. A home-based business can still need state filings, tax accounts, an assumed name, industry licenses, and local zoning or home occupation approval. Check your city, county, or township before operating from home.
Who licenses food businesses in Minnesota?
It depends on the food activity and location. The Minnesota Department of Agriculture licenses many retail and wholesale food businesses, while the Minnesota Department of Health and delegated local public health agencies license and inspect many food, beverage, lodging, pool, and related establishments.
Do Minnesota employers need a separate registration?
Usually yes. Minnesota employers generally need a federal EIN, Minnesota Tax ID Number, withholding tax account, and a Minnesota UI/Paid Leave Employer Account. Employers should also check workers’ compensation, new-hire reporting, and current wage rules. Minnesota Paid Leave began in 2026, and covered employers report wages and pay premiums through the joint UI/Paid Leave employer system.
Can I rely on a BusinessLicenseGuide city page instead of contacting the city?
No. A guide can help you understand where to start, but it does not replace the official city, county, state, or federal agency. Always confirm current requirements with the agency before acting.
Update note
Last updated: August 21, 2026
Next review: November 21, 2026
For this update, we rechecked Minnesota Secretary of State filing and renewal fees, Assumed Name publication and renewal rules, sales tax and remote-seller thresholds, 2026 unemployment insurance figures, Minnesota Paid Leave, minimum wage and new-hire reporting, workers’ compensation, current business-filing statistics, major state licensing starting points, and the current federal BOI rule.
Disclaimer
This article is for general information only. It is not legal, tax, financial, insurance, employment, safety, immigration, or professional advice. Business rules, fees, forms, portals, and policies can change. Confirm your situation with the official agency or a qualified professional before you act.