How to obtain business license in Minnesota
Updated on December 21, 2023
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Introduction
Securing a business license is essential for legal operation in Minnesota. This guide covers licensing needs, available license types, the application process, costs, necessary documents, compliance maintenance, and industry-specific considerations in Minnesota.
Who Needs a Business License in Minnesota?
Nearly all commercial business entities require licensing in MN including retailers, restaurants, service providers, rental property owners, contractors, and independent professionals.
Penalties for non-compliance include fines up to $2,000 per violation, business closure after multiple offenses, and potential criminal prosecution.
Understanding Minnesota Business Licenses
Common Minnesota business license types:
- Local city licenses – Required by most municipalities
- Sales & use tax permits – For charging/remitting sales tax
- Professional licenses – For occupations like law, real estate, cosmetology etc.
- Industry-specific licenses – Healthcare, alcohol, gambling etc.
Preparing to Apply for a License
Identify permits and registrations using Minnesota’s Business Permits & Licenses tool. Prepare your business formation documents, ownership details, and lease agreements. Fees differ based on license types.
Step-By-Step Guide to Apply
To apply for licenses in Minnesota, create an account on the e-Services Portal, use the Finder tool, select required licenses, provide business details, upload documents, pay fees, and await approvals.
To apply online:
- Create an account on Minnesota’s e-Services Portal
- Access Business Permits & Licenses page
- Use the Finder tool and select your required license types
- Provide requested business and ownership details
- Upload supporting documents as needed
- Pay fees
- Obtain approvals
After Submitting an Application
Online applications typically process within 15 business days. Check your status via the e-Services Portal.
If issues occur, administrators will contact you needing clarification or additional documents.
Maintaining Compliance
To remain compliant in MN once approved:
- Prominently display license certificates onsite
- Complete renewal applications prior to expiration
- Remit timely sales, payroll, liquor etc tax payments
- Maintain legally required insurance policies
- Report changes in ownership, activities, locations
Obtaining Federal Registrations
Typical federal registrations also needed:
- Employer ID Number (EIN)
- Trademarks and copyright protections
Special Considerations
Verify specific licensing requirements for businesses like liquor stores, healthcare providers, and construction contractors with state regulatory agencies.
Registering Your Business Name
File “Doing Business As” name certificates via your local County Recorder’s/Auditor’s office in Minnesota.
Minnesota Tax Permits
Common tax permits include Sales and Use Tax Permit, Alcohol & Tobacco Tax Permits, and Motor Fuels Licenses.
FAQs
Who Needs a Minnesota Business License?
Nearly all commercial entities in Minnesota require licensing, including retailers, restaurants, and professional service firms.
What Do Licenses Cost in Minnesota?
License costs in Minnesota range from $10 to over $200, varying based on the license type. Renewal fees also apply.
How Long Does It Take to Get a License in Minnesota?
The typical processing time for obtaining a business license in Minnesota is approximately 15 business days for online applications. However, this duration may vary depending on the license type and application requirements.
Additional Resources
Explore more information and resources on the official Minnesota state websites.
Final Thoughts
Licensing your business in Minnesota is crucial for legal operation and avoiding penalties. Utilize the online application options for efficient processing.
Priyank Singh
Priyank Singh, co-founder and Chief Technology Officer at Stilt, specializes in technology-driven financial solutions. He is having experience of starting FinTech Company, understanding regulations and coming up with creative solutions to solve difficult problems.