Business License Cost in Minnesota (2026): Varies by City
Sales and Use Tax Account. Local fees $0–$100/year. 1–3 business days to process.
Minnesota has no general state business license. If you sell taxable goods or services, register for a free Sales and Use Tax Account with the Department of Revenue. Minnesota is unusual in that most cities don't charge for basic business registration — Minneapolis and St. Paul require licenses only for specific high-regulated business types. Professional licensing is handled separately by state boards.
State License Fee
N/A
No state license required
Local License Fee
$0–$100
city/county, per year
Processing Time
1+
business days
Minnesota Business License: Key Facts
| License Name | Sales and Use Tax Account |
| Issued By | Minnesota department of revenue |
| State Fee | None (local fees apply) |
| Local Fee Range | $0–$100/year |
| Renewal | No Renewal |
| Processing Time | 1–3 business days |
| State Income Tax | Yes |
What You Need to Apply
Before applying for a business license in Minnesota, have these ready:
- ✓ Business name and structure — whether you're a sole proprietor, LLC, or corporation changes which forms you file
- ✓ EIN (Employer Identification Number) — free from IRS.gov, required for most licenses
- ✓ Business address — physical location in Minnesota or a registered agent address
- ✓ Business description and NAICS code — the license fee may depend on your business category
- ✓ Payment method — credit card or check for the license fee
Minnesota-Specific Licensing Note
Minnesota has no general state business license. Businesses selling taxable goods need a free Sales Tax Account. Most local jurisdictions don't charge for basic business registration.
Also Starting a Minnesota LLC?
Forming a Minnesota LLC costs $135 in state filing fees and takes 3–5 business days. Business licenses and LLC formation are separate — you'll need both to legally operate.
How to Form a Minnesota LLC →Professional and Industry-Specific Licenses
A general business license isn't the only license you may need. Most regulated professions require separate state-issued licenses regardless of your general business license status:
Frequently Asked Questions
How much does a business license cost in Minnesota?
Minnesota has no general state business license. If you sell taxable goods or services, register for a free Sales and Use Tax Account with the Department of Revenue. Minnesota is unusual in that most cities don't charge for basic business registration — Minneapolis and St. Paul require licenses only for specific high-regulated business types. Professional licensing is handled separately by state boards.
Do I need a business license in Minnesota?
Yes. Minnesota requires businesses to obtain a Sales and Use Tax Account before operating. Minnesota has no general state business license. Businesses selling taxable goods need a free Sales Tax Account. Most local jurisdictions don't charge for basic business registration.
How do I get a business license in Minnesota?
Apply for a Sales and Use Tax Account through the Minnesota Department of Revenue. Processing takes 1–3 business days in most cases. You'll need your business name, entity type, EIN, and physical address before applying.
What is the difference between a business license and an LLC in Minnesota?
An LLC (Limited Liability Company) is a legal business structure registered with the Secretary of State — it gives you liability protection and separates personal and business assets, costing $135 in Minnesota. A business license is an operating permit from your state or local government that allows you to legally conduct business in that jurisdiction. Most small business owners need both.
Plan Your Business Costs
Business licenses are one piece of your startup budget. Use these calculators to plan the rest:
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