Minnesota Business License: Who Needs One & How to Apply (2025)

What Is a Business License in Minnesota?

A business license is a permit issued by a local, state, or federal body in order to allow businesses to perform a specific business activity and/or operate legitimately.

So, if there isn’t a “general business license” in Minnesota, what exactly is there?

Well, Minnesota — like the vast majority of states — imposes different requirements depending on where you’re located and what you actually do.

For example:

• A restaurant in Minneapolis will need a Restaurant License from the Minneapolis Business Licenses & Consumer Services and a Food License from the Minneapolis Environmental Health Department, plus a Sales and Use Tax Registration from the Minnesota Department of Revenue.
• A barbershop in St. Paul will need a Registered Barber License from the Minnesota Board of Barber Examiners, a business license from the St. Paul Department of Safety & Inspections, and must complete zoning compliance verification for barbershop registration requirements.
• A retail store in Rochester will need a business license from the Rochester City Clerk’s Office and a Sales and Use Tax Registration from the Minnesota Department of Revenue.
• A home-based accounting business in Minneapolis will need professional licensing from the Minnesota State Board of Accountancy if offering CPA services.

Do I Need a Minnesota Business License? 

Well, the answer to this will ultimately depend on your business’s situation. You can have a look at our table below in order to get a general idea:

Minnesota Business Licensing at a Glance

Jurisdiction	Business Licenses	Who Needs It & Where to Apply
Local	Health Permits, Zoning Permits, Occupancy Certificates, Industry-Specific Permits, etc.	Varies by location. Contact your local municipality to determine local requirements.
State	Sales and Use Tax	Businesses selling tangible personal property, digital property, or certain taxable services. Apply with the Minnesota Department of Revenue.
	Professional Licenses	Required for regulated professions (e.g., healthcare, contractors, real estate, etc.) Apply through the Minnesota eLicensing website.
	Industry-Specific State Licenses	Businesses in regulated industries (e.g., food establishments, liquor, childcare, environmental permits). Apply with the relevant agency.
Federal	Industry-Specific Licenses	Businesses involved in federally regulated activities such as agriculture, aviation, firearms, alcohol, broadcasting, or wildlife. Apply through the relevant federal agency (e.g., USDA, FAA, ATF, FCC, FWS)

*While this table is meant to give you a general idea, it’s by no means exhaustive. For all your licensing needs, we suggest either going with a professional licensing service or consulting with a business attorney.

How to Get a Business License in Minnesota

The process of obtaining a business license in Minnesota will depend on the permit in question, but generally involves completing the following steps:

1. Form a Business Structure & Obtain an Employer Identification Number (EIN)

We recommend formalizing your business before acquiring a business license in order to avoid potentially having to repeat this process again later down the line. 

This also gives other benefits depending on the business model, such as:

• Personal liability protection
• Improved legitimacy 
• Larger access to loans and corporate finance

We generally recommend almost all small business owners to form a limited liability company (LLC). This offers personal liability protection, is extremely affordable, and offers a ton of flexibility when it comes to how it can be taxed and managed. 

Note: You should obtain an EIN after forming your LLC. See our How to Get an EIN overview for more information. 

2. Apply for the Right Business License in Minnesota

This step will depend on the business license in question.

Minnesota Local Business Licenses

Many Minnesota cities and counties require local business licenses or permits to be obtained. This can be in addition to the common state-wide licenses talked about above.

Here are some common local permits you may need:

• Industry Permits: This includes health permits required for restaurants, food trucks, and businesses handling food products. These are typically issued by local health departments in coordination with the Minnesota Department of Health (e.g., if your business is based in Minneapolis, you would obtain food service permits from the Minneapolis Environmental Health Department).
• Zoning Permits: You may need this to ensure that your business’s location is zoned appropriately and complies with local laws (e.g., if you were based in St. Paul, you would check with the St. Paul Department of Safety & Inspections for zoning compliance and may need to complete a Class “N” District Council Form for community notification).
• Fire Department Permits: These can be necessary for businesses with public access, including occupancy permits for commercial buildings. Fire safety inspections are typically required for most commercial occupancies (e.g., if your business is in Rochester, you would work with the Rochester Fire Department for occupancy and safety compliance).
• Certificate of Occupancy: Required for most businesses before they can legally occupy a building or space. This verifies that the structure meets building codes and is safe for the intended use (e.g., if your business is in Duluth, you would apply through the Duluth Building Safety Division).
• Home-Based Business Permits: Required for businesses operating out of a residence in many cities. Home occupation permits ensure compliance with local zoning laws and may have restrictions on the type and scale of business activities (e.g., if operating a home business in Rochester, you would check requirements with the Rochester Community Development Department).

To find your local city or town’s official contact information and licensing requirements, you can visit the Minnesota Secretary of State’s business registration website or contact your municipal clerk’s office directly for local permit information.

Minnesota State Business Licenses

Below we’ve included the most common business licenses that are required on a state level. 

Minnesota Sales and Use Tax 

You can apply for a Minnesota Sales and Use Tax Permit online by registering with the Minnesota Department of Revenue. 

Apply Online

Fee: $0

Minnesota Professional Licenses

If you’re interested in a professional license, you’ll need to head over to the relevant state commission, as this is not handled on a local level. We’ve provided the licensing boards of a few of the most common professions below to get you started:

• Minnesota Department of Commerce Real Estate Licensing: Licenses real estate agents, brokers, and real estate appraisers. 
• Minnesota Board of Cosmetology: Licenses cosmetologists, barbers, estheticians, nail technicians, hair designers, and related establishments. 
• Minnesota State Board of Accountancy: Establishes educational and professional standards for Certified Public Accountants (CPAs) providing financial services in Minnesota. Handles CPA examination, licensing, and continuing education requirements.
• Minnesota Board of Law Examiners: Coordinates bar admission applications, administers the bar examination, and investigates character and fitness of persons seeking to practice law in Minnesota state courts.
• Minnesota Board of Medical Practice: Licenses physicians, physician assistants, and other medical professionals. Responsible for medical licensing, examinations, and regulatory oversight.
• Minnesota Board of Registration in Nursing: Regulates the practice of nursing and issues licenses to qualified registered nurses, licensed practical nurses, and advanced practice registered nurses.

For more information on how to go about getting licensed, you can have a look at StateRequirement’s in-depth licensing guides. 

Industry-Specific State Licenses

Some Minnesota businesses require additional licenses based on the specific industry they operate in.

Here are some common examples of industry-specific state licenses in Minnesota:

• Alcoholic Beverage License: Required for businesses that manufacture, distribute, or sell alcoholic beverages. Regulated by local municipalities with oversight from the Minnesota Department of Public Safety: Alcohol & Gambling Enforcement Division. Minnesota offers various license types including off-sale licenses for liquor stores, on-sale licenses for restaurants and bars, and specialty licenses for breweries, wineries, and distilleries.
• Food Service Establishment Permit: Required for restaurants, food trucks, and businesses that prepare, serve, or sell food to the public. Regulated by the Minnesota Department of Health through the Food, Beverage and Lodging Services (FPLS) program.
• Motor Vehicle Dealer License: Required for businesses selling, displaying, or offering motor vehicles for sale. Regulated by the Minnesota Department of Public Safety: Driver and Vehicle Services Division. Different license types are available for new car dealers, used car dealers, motor vehicle wholesalers, and recreational vehicle dealers.
• Child Care License: Required for child care centers, family child care homes, and providers caring for children. Regulated by the Minnesota Department of Human Services. Includes background checks, health and safety requirements, staff training standards, and ongoing inspections.
• Cannabis Business License: Required for businesses cultivating, processing, dispensing, or transporting cannabis products. Regulated by the Minnesota Office of Cannabis Management. Minnesota offers various license types for medical and adult-use cannabis operations including cultivation, manufacturing, retail dispensary, and delivery licenses.
• Food Processing License: Required for businesses that process, manufacture, or package food products for wholesale or retail sale. Regulated by the Minnesota Department of Agriculture Food and Feed Safety Division. Includes requirements for HACCP plans, facility inspections, and product labeling compliance.
  

Minnesota Environmental Permits

If your business’s industry will mean that it could negatively impact the environment, there’s a good chance you’ll need some sort of license or permit from the Minnesota Pollution Control Agency. 

Examples of industries regulated here include:

• Aggregate: sand and gravel
• Alternative landscaping equipment
• Automotive: repair, body shops, and salvage
• Boilers
• Brewing and distilling
• Cannabis businesses
• Dry cleaners
• Gas stations
• Grain elevators, feed mills, and fertilizer mixing plants
• Hot mix asphalt
• Metal fabrication and finishing
• Painting, coating, or stripping surfaces
• Refrigeration
• Stationary engines or generators
• Woodworking and finishing
• Aboveground storage tanks 

Federal Business Licenses for Minnesota LLCs

If your business is in a federally regulated industry (which is uncommon), it’ll need to acquire the appropriate business license from the right body before starting to operate. 

A full list of industries regulated at a federal level can be found below:

• Agriculture: Overseen by the U.S. Department of Agriculture
• Alcoholic Beverages: Overseen by the Alcohol and Tobacco Tax and Trade Bureau and the Local Alcohol Beverage Control Board
• Aviation: Overseen by the Federal Aviation Administration.
• Firearms, Ammunitions, and Explosives: Overseen by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
• Fish and Wildlife: Overseen by the U.S. Fish and Wildlife Service.
• Commercial Fishing: Overseen by the National Oceanic and Atmospheric Administration Fisheries Service.
• Maritime Transportation: Overseen by the Federal Maritime Commission.
• Mining and Drilling: Overseen by the Bureau of Safety and Environmental Enforcement.
• Radio and Television Broadcasting: Overseen by the Federal Communications Commission.
• Transportation and Logistics: Overseen by the U.S. Department of Transportation

Minnesota Business License Renewal

Depending on your business license, you may need to renew it periodically — usually within one or two years. 

A Minnesota Sales and Use Tax Permit does not need to be renewed.

Several of the local permits will need to be renewed annually; this includes health department permits, signage permits, and fire department permits, which generally all need to be renewed annually.

Having said that, this will depend on both your location and the license in question.

Minnesota Business License FAQs

Quick Links

• License Minnesota
• Minnesota Department of Employment and Economic Development
• Minnesota Business Tax Registration
• Minnesota County Government websites