The Complete Guide to Minnesota Business Licenses
Minnesota does not issue a general state business license. Most businesses register with the Department of Revenue, check city requirements for their type of business, and get a state license if their activity is regulated.
Step 1: Form the LLC
File Articles of Organization with the Minnesota Secretary of State for $155 online ($135 by mail). The annual renewal is free but must be filed by December 31 each year, starting the year after formation. See the Minnesota LLC guide for every formation step.
Step 2: Register with the Department of Revenue
Get a Minnesota Tax ID number and open a sales and use tax account through the Department of Revenue's business tax registration. Minnesota does not issue a separate permit — your registration confirmation letter is used in place of a sales tax permit. The state rate is 6.875%, plus local taxes. The same registration covers employer withholding.
Step 3: City licenses
Minnesota cities license by business type rather than requiring one general license. Minneapolis, for example, licenses food businesses, animal-related businesses, contractors and trades. Check your city for licenses, zoning and occupancy rules.
Step 4: Professional and contractor licenses
Residential building contractors must be licensed by the Department of Labor and Industry (DLI), and commercial contractors register with DLI. Other professions are licensed by their state boards.
Hiring staff and assumed names
Employers register for withholding with the Department of Revenue and for unemployment insurance with Unemployment Insurance Minnesota. An assumed name (DBA) is filed with the Secretary of State — $50 online or $30 by mail — and must be renewed every year.
Checklist
| Registration | Agency | Cost |
|---|---|---|
| Articles of Organization | Secretary of State | $155 online; free annual renewal |
| Tax ID and sales tax account | Department of Revenue | Confirmation letter replaces a permit |
| City license by business type | Your city | Set locally |
| Contractor license | Department of Labor and Industry | Varies |
| Assumed name | Secretary of State | $50 online / $30 mail; renew yearly |
Frequently Asked Questions
Does Minnesota require a business license?
Minnesota has no general state business license. Businesses register with the Department of Revenue, follow their city's licensing rules for their business type, and get a state license if their activity is regulated.
How do I get a sales tax permit in Minnesota?
Register for a Minnesota Tax ID and a sales and use tax account with the Department of Revenue. Your registration confirmation letter is used in place of a sales tax permit.
How much is an assumed name in Minnesota?
$50 online or $30 by mail with the Secretary of State, and it must be renewed every year.
How much does it cost to form an LLC in Minnesota?
The Articles of Organization cost $155 online ($135 by mail), and the annual renewal is free.
Do contractors need a license in Minnesota?
Residential building contractors must be licensed by the Department of Labor and Industry, and commercial contractors register with the department.