MN Business License Basics
If you own a business in Minnesota you'll need a license to operate. There are various types of Minnesota business licenses and permits that are required by various government entities at federal, state and local levels. An operating license is the basic type of business license that most all businesses will be expected to have.
Each level of government has specific regulations and requirements that must be met before a business can get a license. If you don’t comprehend the licensing rules in Minnesota and follow them it could result in expensive fines and putting your business at risk.
Types of Business Licenses in Minnesota
Federal Business Licenses – The federal government has a number of agencies that regulate and supervise business activities. If your business takes part in any one of these federally regulated activities you will have to get a federal business license.
Activities that will be required to get a federal business license include:
- Alcohol manufacturing, importing and sales
- Agriculture
- Firearm dealing, importing and manufacturing
- Ammunition and Explosives dealing, importing and manufacturing
- Aviation
- Wildlife related activities
- Mining
- Drilling
- Commercial fishing
- TV and radio broadcasting
- Trucking
State Business Licenses – Many Minnesota businesses must obtain some type of state business license in order to legally operate. At the minimum a business should get a professional or occupational license. Minnesota business licenses are typically used for tax purposes.
Local Business Licenses – Local Minnesota governments and municipalities also grant business licenses. All businesses will be required to get some good type of local business license to be able to operate in Minnesota.
Permits – Permits are more specific to a certain type of business within an industry. Permits have a wide array of purposes from parking to product sales.
How to Get a Minnesota Business License
The steps you will need to take to obtain a business license in Minnesota will vary depending on what sort of business license you have to get. Regardless of what type of license you are hoping to get you will have to fill out application form(s) and supply detailed information about your business.
If you are starting a business or expanding your business you will have numerous forms to fill out. Be prepared to supply your Employer Identification Number (EIN).
The SBA (Small Business Administration) has great online tools for helping business owners decide exactly what type of Minnesota business licenses they should get, links to websites, applications and instructions. If you’re just starting a business and need help with licensing, the SBA is the best place to get more info.
Maintaining Your Minnesota Business License
Once you get your Minnesota business licenses and permits you must still maintain them every year to keep them up to date. The guidelines below are recommended if you want to ensure your business license is in good standing.
- Make copies of your business licenses and permits.
- Track when licenses and permits must be renewed.
- Follow the regulations for displaying your business license.
- If you intend to change or expand your business be sure to verify whether you need additional permits or business licenses.