Are you thinking about starting a new business in Minnesota? Along with filing your company with the state, one key step in the business formation process is obtaining any business licenses and permits that you are required to have.
However, since the exact licenses and permits that a Minnesota business is required to have will depend on several factors, figuring out which ones you need can sometimes be a little challenging. To help you out, we’ve put together a guide covering everything you need to know about business licenses and permits in Minnesota, including how to determine which ones your business needs and how to apply for them.
The main reason why businesses in Minnesota are required to obtain business licenses and permits is that it allows various governing agencies to regulate business activity in their jurisdictions. To apply for a business license, you’ll be required to submit a lot of information about your business, and this information is used to verify that your business is compliant with various laws and regulations.
Business licenses and permits can be issued by agencies at the local, state, and federal levels. In most cases, business licenses are used to authorize businesses to operate in a specific location while permits are used to regulate specific activities. For example, a diner located in Minneapolis will need a general business license from the city, but it will also need a state-issued health permit before it can legally serve food to customers.
Business licenses and business permits share a lot in common, but there is one key difference between the two. Business licenses grant businesses the authority to operate in a specific location, and since Minnesota doesn’t have a state-issued business license, these licenses will typically come from the local level (either your city or county government). Business permits, meanwhile, are used to regulate specific activities, and these can be issued by agencies at the local, state, or federal levels.
Where your business is located, its industry, and its activities are the primary factors that will determine which licenses and permits your business needs. With that said, here are the different types of licenses and permits a Minnesota business might be required to have, including those issues at the local, state, and federal levels:
Depending on your business activities, you may be required to obtain specialized permits as well, including permits such as:
For businesses operating in federally regulated industries, federal permits may be required as well. Here are the different federal permits that a Minnesota business might need:
For more information about federal licensing requirements, check out the Small Business Administration (SBA) federal licenses and permits page.
Before we get started, it’s important to note that the exact process for obtaining business licenses and permits in Minnesota will depend on which ones your business needs. Each agency has its own application process and fees. However, here is the general process that you will typically need to follow when applying for business licenses and permits in Minnesota:
The first and perhaps most important step is to determine exactly which licenses and permits your business is required to have. This can include licenses and permits issued from agencies at the local, state, and federal levels of government:
To apply for most licenses and permits, you’ll have to submit an application form, and filling out this form will require you to submit a lot of information about your company. In some cases, you may need to submit supporting documents as well. Most business licenses and permits will also require you to pay an application fee, and the amount of this fee will vary from one agency to another.
Once you’ve submitted your application for a business license or permit, you can usually track its status by visiting the website of the issuing agency. If the agency does not offer online tracking (which is sometimes the case for licenses issued at the local level), you can check your application status by contacting the agency’s office.
Processing times can vary quite a lot from one license/permit to another. Those issued at the state and local level tend to take around 10-15 days but may take longer in some cases. Applications for federal permits, meanwhile, usually take several weeks to process.
It’s important to keep in mind that almost all business licenses and permits have to be renewed on a regular basis, with annual renewal being the most common frequency. Create a system for tracking the renewal deadlines for all your licenses and permits so you don’t miss any; failing to renew a business license or permit on time can potentially lead to fines and other penalties.
Obtaining all necessary business licenses and permits is a vital step when forming a business in Minnesota. Since the exact steps for obtaining business licenses and permits ultimately depends on which ones your business needs, figuring out the process for applying for them is sometimes challenging. However, we hope you’ve found this guide helpful!
You should always be certain that you have all required business licenses and permits before you start your business operations. Failing to do so can lead to some stiff penalties, including fines and even business closure.
Sole proprietors in Minnesota are treated just like any other business when it comes to licensing requirements. The licenses and permits that you will need as a sole proprietor depends on where you are conducting business and your business activities, just like it does for LLCs and corporations in the state.
Yes, most business licenses and permits will have to be renewed. You can check the renewal deadline on your license/permit to see when renewal is due.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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