How do I get a business license?

Minnesota Secretary of State (entity formation) / Minnesota Department of Revenue (tax registration) / Local jurisdiction for local licenses

Step by Step

How to do it

Determine your business structure: sole proprietor, LLC, corporation, partnership
Register your business entity with the Minnesota Secretary of State (for LLCs and corporations) - file online at sos.mn.gov/business-liens/businesses (Minnesota Business Center); Minnesota offers a fast, streamlined online filing system
Obtain an EIN (Employer Identification Number) from the IRS at irs.gov if forming an entity, hiring employees, or operating as a partnership
Register with the Minnesota Department of Revenue for applicable state taxes through the MN e-Services portal at mymnth.mn.gov:
- Minnesota Sales and Use Tax account (if selling taxable goods/services)
- Minnesota Withholding Tax (if you have employees)
- Other applicable state taxes
Check with your city or county for LOCAL BUSINESS LICENSES - Minnesota municipalities each independently decide licensing requirements; many cities require local licenses; Hennepin County and Ramsey County cities (Minneapolis, St. Paul, etc.) have their own licensing systems
Check for industry-specific state licenses: contractors (Minnesota Department of Labor and Industry - dli.mn.gov for electricians, plumbers, HVAC, etc.); health professionals, real estate, cosmetologists, engineers through the Minnesota Department of Labor and Industry or relevant licensing boards; general contractors do not need a state license but specialty trades do
Renew entity annual renewal with Secretary of State; renew local licenses per city schedule; renew professional licenses per board schedule

Details

What you need to know

Required Docs

Business name and type of activity
Minnesota business address and registered agent
Entity formation documents if LLC or corporation
EIN or Social Security number
Industry-specific certifications if applicable

Fee

LLC formation: $155 online (mid-range nationally); corporation: $135 online; annual renewal: $45 (LLC and corporation - relatively affordable); Sales Tax registration: free; local license: varies by city RENEWAL: Entity annual renewal due by December 31 each year; failure to file results in administrative dissolution; local license: annual per city ONLINE OPTION: Yes - sos.mn.gov/business-liens/businesses (entity formation); mymnth.mn.gov (tax registration); dli.mn.gov (trade licenses) WHERE TO GO: Minnesota Secretary of State (entity); Minnesota DOR (tax); City/County (local license); DLI (trade licenses); relevant licensing board (professional licenses)

Online Option

Yes - sos.mn.gov/business-liens/businesses (entity formation); mymnth.mn.gov (tax registration); dli.mn.gov (trade licenses)

Where to Go

Minnesota Secretary of State (entity); Minnesota DOR (tax); City/County (local license); DLI (trade licenses); relevant licensing board (professional licenses)

County-specific variations apply

Minnesota cities each independently administer local business licenses. Minneapolis (Hennepin County), St. Paul (Ramsey County), Rochester, Duluth, Bloomington, and other cities have their own business licensing portals. Many Minnesota cities in the metro area require local licenses for a wide range of business types. Rural outstate Minnesota cities may have minimal local licensing requirements. Verify with your specific city before operating.

Minnesota Notes

Important state-specific details

Minnesota LLC formation: $155 online - reasonable; annual renewal $45 - low.
Annual renewal due December 31 - earlier than many states; easy to miss if incorporated mid-year.
Minnesota DLI (Department of Labor and Industry): oversees electricians (license required), plumbers (license required), HVAC contractors (license required), boiler operators, and other specialty trades - dli.mn.gov.
General contractors in Minnesota do NOT require a state contractor's license, but specialty trades do.
Minnesota DEED (Department of Employment and Economic Development): business development resources - mn.gov/deed.
Minnesota sales tax: 6.875% state rate; some local options apply (Hennepin County transit tax, St. Paul, Minneapolis add-ons); food for home consumption exempt; prescription drugs exempt.
Minnesota income tax: graduated for individuals (up to 9.85%); flat C-corporation rate (9.8%); important consideration for business structure choice.

Official Source

State office contact

State Office

Minnesota Secretary of State, Business Services - sos.mn.gov/business-liens/businesses | (651) 296-2803; Minnesota DOR - revenue.state.mn.us | (651) 556-3000; Minnesota DLI (trade licenses) - dli.mn.gov | (651) 284-5005