Minnesota Business License Requirements for an LLC

A Minnesota business license gives your Limited Liability Company (LLC) permission to operate in a certain location or within a specific industry.

While we can’t walk you through any applicable license applications step-by-step, we do provide helpful resources like:

• information about state licensing rules
• instructions for researching municipal licenses

And if you want to just hire a company to do the research for you, we have a recommendation below.

Minnesota Business License Requirements

After you form a Minnesota LLC, you may need to obtain a business license or permit.

Your requirements are determined by the industry you are in and where your Minnesota Limited Liability Company is located.

Because of the large number of industries and all of the municipalities in Minnesota, it’s not possible for us to explain them all. However, you can use the search tools below, call your local municipality, or hire a company for help.

How to get a Business License in Minnesota

You can obtain a business license in Minnesota by applying with the relevant licensing or regulatory agency. The agency you apply with will depend on where your business is located and what business activities it engages in.

The business license application typically requires basic information, such as your LLC name, EIN Number, business address, and contact information. Many also include a questionnaire that asks about your business activity.

There are three main licensing jurisdictions:

• State licensing
• Local licensing, such as county, city, township, etc.
• Federal licensing

Does Minnesota Require a Business License?

That depends on where your business is located, and what it does.

There are two types of state-level business licenses:

• a general business license
• and an occupational license

Minnesota General Business License

Some states have a general license requirement, which means all businesses operating in those states must have the license, regardless of what they do.

But good news: Minnesota doesn’t require a general license to do business in the state.

Meaning, your Minnesota LLC doesn’t need a general state business license. But depending on what type of business you run, your LLC might need an occupational license.

Minnesota Occupational License

Most states have occupational business license requirements. This means a license or permit may be required depending on what your business does or what your occupation is. For example, if you sell used cars, or run a hair salon, you may need an occupational business license. But a license may not be required for other types of businesses.

The Minnesota Department of Employment and Economic Development (aka DEED) has developed an eLicensing site. We like this resource because it’s a centralized, complete set of information.

The eLicensing page lets you search for potential business license requirements by topic, or by choosing the agency or board to view licenses issued by that entity.

If you have other questions about business licenses in Minnesota, the DEED’s Licenses and Permits page has good explanations.

You can also contact the Small Business Assistance Office of the Department of Employment and Economic Development with questions.

Note: Minnesota business licenses are not issued by the Secretary of State. The Secretary of State is responsible for business entity administration, for example Limited Liability Company formation.

How much is a Minnesota Business License?

Minnesota doesn’t have a general business license at the state level, so there are no fees there.

However, your business may need a state-level occupational license or municipal-level license or permit to operate. The filing fee for these licenses will vary depending on where you’re doing business and what industry you’re in. To be honest, we can’t predict your specific Minnesota business license cost.

For example, licenses issued by a county that contains a large city are usually more expensive than licenses in less populated, rural counties. And licenses for regulated industries, like child care facilities, are usually more expensive than generic business licenses.

But your LLC might not need a license or permit at all. So your Minnesota business license cost could be $0.

See LLC Cost in Minnesota to learn about all the possible LLC fees.

Municipal Business License

Municipal business licenses can be issued by the city, town, county, parish, township, borough, etc. We refer to all of these as a “municipality” to keep things simple.

There are two types of municipal business licenses:

• general business license
• industry-specific license

For example, if a municipality has a general business license requirement, all businesses operating in that municipality must have the license, regardless of what they do.

And if a municipality has industry-specific business licenses, a license or permit may be required depending on what your business does. For example, if you operate a food truck, or run a daycare, you may need an industry-specific municipal business license. Or if you’re purchasing or leasing real estate, you may need a zoning permit.

But a license may not be required for other types of businesses, like making wedding invitation templates or offering marketing consulting.

You can contact your municipality to check on their local licensing requirements:

• List of County Websites
• List of City Websites

If your City or County doesn’t have a licensing or permitting department, check with the city clerk or county clerk’s office.

Minnesota Sales Tax License

If you sell products to consumers in Minnesota, you may need to collect sales tax and file a Sales and Use Tax Return.

Note: This requirement will apply whether you sell products online or in a physical location in Minnesota.

Your LLC must register with the Department of Revenue to file sales tax returns. Unlike many states, Minnesota doesn’t have a separate Sales Tax Permit. You will need a Minnesota state tax ID, but there’s no extra application for the sales tax license.

For additional information about the Minnesota tax ID number for businesses (and the sales tax rules):

• Minnesota DEED: Business Taxes
• Minnesota DEED: Business Tax Liabilities
• Minnesota DEED: Minnesota Tax ID Numbers
• Minnesota Dept. of Revenue: Sales and Use Tax Guide

Do I need any federal business licenses?

Most businesses in Minnesota don’t need a federal business license. However, certain industries do need federal licenses:

Check out the Small Business Administration’s Licenses and Permits page for a full list of industries with federal license requirements.

If your business isn’t one of these special cases, then the only federal requirements are that your LLC get an Minnesota EIN Number (aka Federal Employer Identification Number) and that you file taxes.

Minnesota Business License FAQs

Matt Horwitz

Founder & Educator, LLC University®

Matt Horwitz has been the leading expert on LLC education for the past decade. He founded LLC University in 2010 after realizing people needed simple and actionable instructions to start an LLC that other companies weren't offering. He's cited by Entrepreneur Magazine, Yahoo Finance, and the US Chamber of Commerce, and was featured by CNBC and InventRight.
 
Matt holds a Bachelor's Degree in business from Drexel University with a concentration in business law. He performs extensive research and analysis to convert state laws into simple instructions anyone can follow to form their LLC - all for free! Read more about Matt Horwitz and LLC University.