Here's what you need in Minnesota
Official state business portal: Minnesota DEED: Starting a business. DEED's small business pages are the state's official guide to starting a business in Minnesota, with help on registration, licenses and taxes. (Not yet verified.)
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| General state business licenseMinnesota does not appear to have one license for every business, but we could not open an official state page that says so. Check the state agency for your trade and your city or county. | Minnesota Department of Employment and Economic Development (DEED) | Not yet verifiedCheck with the agency | Source | Nov 7, 2026 |
| Form an LLCArticles of Organization. File Articles of Organization with the Minnesota Secretary of State. | Minnesota Secretary of State | $135 filing fee | Applyat sos.state.mn.usSource | Nov 7, 2026 |
| Business name (DBA)Certificate of Assumed Name. If you do business under a name other than your legal name, file a Certificate of Assumed Name with the Minnesota Secretary of State. Renew it every year to keep it in effect. | Minnesota Secretary of State | $30 filing fee, free yearly renewal | Applyat sos.state.mn.usSource | Nov 7, 2026 |
| Sales tax permitSales and use tax permit. If you make taxable sales in Minnesota, apply to the Department of Revenue for a sales tax permit. | Minnesota Department of Revenue | Fee not published.Ask the agency | Applyat revenue.state.mn.usSource | Nov 7, 2026 |
| Unemployment insurance (once you hire)Unemployment insurance employer account. Every employer must register for an unemployment insurance tax account by the time it files its first wage detail report. | Minnesota Unemployment Insurance Program (DEED) | You pay tax on wages | Source | Nov 7, 2026 |
| Federal tax ID (EIN)Employer Identification Number (EIN). You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. | Internal Revenue Service (IRS) | Free | Applyat irs.govSource | Nov 7, 2026 |
Costs after you start
What an LLC in Minnesota pays or files after it is formed.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Annual RenewalEvery Minnesota LLC files an annual renewal with the Secretary of State by December 31 each year, starting the year after it is formed. Not filing leads to administrative termination. | Minnesota Secretary of State | Free | Applyat sos.state.mn.usSource | Nov 7, 2026 |
Licenses by type of business
State level licenses. Your city or county may add its own permits.
| What you need | Who issues it | Official fee | Links | Checked |
|---|---|---|---|---|
| Hair salon, barber shop or nail salonSalon license. A salon needs a salon license from the Minnesota Board of Cosmetologist Examiners. Faster (expedited) processing of a new salon license costs more. | Minnesota Board of Cosmetologist Examiners | $350 for a new salon license | Applyat mn.govSource | Nov 7, 2026 |
| Child care in your homeFamily child care license. Family child care homes are licensed through your county, which may charge a license fee up to a limit set by state law. | Your county, under the Minnesota Department of Children, Youth, and Families | Up to $50 for 1 year or $100 for 2 years, set by the county | Source | Nov 7, 2026 |
| Selling alcohol (bar or restaurant)On sale liquor license. Bars and restaurants get an on sale liquor license from the city or county where they are. The city or county sets the license fee, within limits in state law. | Your city or county (state oversight by the Alcohol and Gambling Enforcement Division) | Set by each city or county | Applyat dps.mn.govSource | Nov 7, 2026 |
| General contractorResidential building contractor or remodeler license. Contractors who work directly for homeowners in more than one skill area need a state residential contractor or remodeler license. Commercial contractors do not need this license but must register with the state. | Minnesota Department of Labor and Industry (DLI) | $180 base fee plus a Recovery Fund fee from $320 | Source | Nov 7, 2026 |
| Selling homemade food (cottage food)Cottage food registration. You can sell homemade non hazardous foods directly to customers in Minnesota after you register each year with the Department of Agriculture and take a food safety course. Sellers with very small sales do not pay the fee. | Minnesota Department of Agriculture | $50 a year (free for the smallest sellers) | Source | Nov 7, 2026 |
What is different in Minnesota
- At $135, the LLC filing fee is among the highest: only 11 of 49 verified states charge more.
- Business names (DBAs) are filed with the state, at the Minnesota Secretary of State. At $30, the state DBA fee is near the middle: 21 of 33 verified states charge less and 10 charge more.
- Homemade food sales are capped at $78,000 a year. Of the 16 states where we verified a cap, 7 allow more.
- Home food sellers need the Cottage food registration ($50 a year (free for the smallest sellers)).
- Contractor licensing in Minnesota: Contractors who work directly for homeowners in more than one skill area need a state residential contractor or remodeler license. Commercial contractors do not need this license but must register with the state.
- At $350, the salon or shop license fee is among the highest: only 2 of 36 verified states charge more.
- Annual Renewal: Free. Every Minnesota LLC files an annual renewal with the Secretary of State by December 31 each year, starting the year after it is formed. Not filing leads to administrative termination.
Steps to start a business in Minnesota
Pick a structure and register it
Sole owners can start under their own name. To form an LLC, file the Articles of Organization with the Minnesota Secretary of State ($135).
Get a free EIN
Apply on irs.gov. You need it to hire, and banks usually ask for it. Never pay a website for an EIN.
Register your business name
If you trade under a name that is not your legal name, file a DBA with the Minnesota Secretary of State.
Register for sales tax
If you sell taxable goods or services, get your permit from the Minnesota Department of Revenue before your first sale.
Get a state license for your type of business
Salons, child care, alcohol, building work and home food each have their own state rules. See the table above.
Check city and county permits
Ask about a local business license, zoning, health and building permits before you sign a lease.
Register as an employer when you hire
Open a state unemployment insurance tax account with the Minnesota Unemployment Insurance Program (DEED).
City and county permits
Cities and countys in Minnesota can require their own business license, zoning approval, health permit or building permit. Rules change from place to place, so ask your city hall and county clerk before you sign a lease. Home businesses often need a home occupation permit.
In the biggest cities, ask these local governments:
- Minneapolis: the city, and Hennepin County. City of Minneapolis (minneapolismn.gov)
City rules and fees are not in our guide yet.
Questions about business licenses in Minnesota
Do I need a business license in Minnesota?
We have not yet verified this on an official page. Check with the Minnesota Department of Employment and Economic Development (DEED).
How much is an LLC in Minnesota?
The Minnesota Secretary of State charges $135 filing fee to file the Articles of Organization. File Articles of Organization with the Minnesota Secretary of State.
How much does an LLC cost per year in Minnesota?
Annual Renewal: Free. Every Minnesota LLC files an annual renewal with the Secretary of State by December 31 each year, starting the year after it is formed. Not filing leads to administrative termination.
Does an LLC need a business license in Minnesota?
Yes, if your type of business or your location requires one. Forming an LLC only registers your company with the state; it is not a license. An LLC in Minnesota still needs any state license for its type of business and any local business license from its city or county.
Do I need a sales tax permit in Minnesota?
Yes, if you sell taxable goods or services. If you make taxable sales in Minnesota, apply to the Department of Revenue for a sales tax permit.
How much is a DBA in Minnesota?
If you do business under a name other than your legal name, file a Certificate of Assumed Name with the Minnesota Secretary of State. Renew it every year to keep it in effect. Official fee: $30 filing fee, free yearly renewal.
Can I sell homemade food from home in Minnesota?
You can sell homemade non hazardous foods directly to customers in Minnesota after you register each year with the Department of Agriculture and take a food safety course. Sellers with very small sales do not pay the fee. Fee: $50 a year (free for the smallest sellers). Sales cap: $78,000 a year.
Do contractors need a state license in Minnesota?
Contractors who work directly for homeowners in more than one skill area need a state residential contractor or remodeler license. Commercial contractors do not need this license but must register with the state. Official fee: $180 base fee plus a Recovery Fund fee from $320.
Do I need an EIN?
You need an EIN if you have employees or pay certain federal taxes, and banks often ask for one. Apply online with the IRS and you get the number in minutes. It is free: never pay a website for an EIN.
Sources
Every fact on this page comes from an official government page, checked on the date shown. Facts we could not confirm are marked Not yet verified and show no number. How we check.
- General state business license Minnesota Department of Employment and Economic Development (DEED) Not yet verified Checked Nov 7, 2026
- Form an LLC Minnesota Secretary of State Checked Nov 7, 2026
- Business name (DBA) Minnesota Secretary of State Checked Nov 7, 2026
- Sales tax permit Minnesota Department of Revenue Checked Nov 7, 2026
- Unemployment insurance (once you hire) Minnesota Unemployment Insurance Program (DEED) Checked Nov 7, 2026
- Hair salon, barber shop or nail salon Minnesota Board of Cosmetologist Examiners Checked Nov 7, 2026
- Child care in your home Your county, under the Minnesota Department of Children, Youth, and Families Checked Nov 7, 2026
- Selling alcohol (bar or restaurant) Your city or county (state oversight by the Alcohol and Gambling Enforcement Division) Checked Nov 7, 2026
- General contractor Minnesota Department of Labor and Industry (DLI) Checked Nov 7, 2026
- Selling homemade food (cottage food) Minnesota Department of Agriculture Checked Nov 7, 2026
- Annual Renewal Minnesota Secretary of State Checked Nov 7, 2026
- Federal tax ID (EIN) Internal Revenue Service (IRS) Checked Nov 7, 2026