How to start a business in Minnesota

What do you file before you open in Minnesota?

1. Pick a structure

   Most owners choose an LLC or a corporation; the S corp or C corp tax choice comes later. See Minnesota LLC guide, Minnesota corporation guide, S corp or C corp in Minnesota. By trade: cleaning business, handyman.

2. Check and register the name

   Search the Secretary of State records before you pick a name: state name search. Minnesota requires a business that operates under a name not setting forth the true name of every person interested in it to file a certificate in the Office of the Secretary of State. ¹ See Minnesota name search guide.

3. File with the state

   Minnesota charges the state filing fee once: an LLC costs $155 ² and a corporation's articles of incorporation cost $155 ³. See LLC cost.

4. Name a registered agent

   Minnesota requires a registered office and agent in the Articles, and a P.O. box by itself is not an acceptable address. ⁴ Our registered agent service runs through our partner Registered Agents Inc (RAI), the registered agent of record. See Minnesota registered agent rules.

Which accounts do you open after you file in Minnesota?

1. Get an EIN

   An EIN is the business's federal tax ID. The IRS issues it online, for free, and warns about websites that charge for one. ⁵

2. Open your state tax accounts

   The Minnesota Department of Revenue issues the Minnesota Tax ID Number that a business needs to make taxable sales or leases or to withhold income tax from employee wages, and businesses apply through Business Tax Registration. ⁶ See Sales tax permit.

3. Register as an employer

   Under Minnesota law, every individual or organization that pays covered wages in Minnesota registers with the state Unemployment Insurance Program, as soon as possible after first wages are paid and before the first quarterly wage detail report is due. ⁷ Minnesota employers report each new hire to the commissioner of children, youth, and families within 20 calendar days of the date of hiring. ⁸ The Minnesota Department of Labor and Industry says Minnesota employers must either buy workers' compensation insurance or get approval from the Department of Commerce to self-insure, and no minimum number of employees applies. ⁹

What keeps your Minnesota business in good standing?

1. Check licenses and permits

   The U.S. Small Business Administration's Minnesota district page says licenses are typically administered by a variety of state and local departments, and it points owners to the local business license office where they plan to locate. ¹⁰

2. Calendar the yearly filings

   Minnesota annual renewal, due December 31 every year. ¹¹ See Minnesota annual report.

3. Use free local help

   The Minnesota Department of Revenue points new owners to the Minnesota Department of Employment and Economic Development for common questions about starting a business, including licenses and permits. ¹²

What it costs to start a business in Minnesota

Do you need a business license in Minnesota?

It depends on the trade and the place. The U.S. Small Business Administration says most small businesses need a combination of licenses and permits from federal and state agencies, and that requirements and fees depend on the business activity and the issuing agency. ¹⁴ Minnesota's own rule is in step 8. ¹⁰ Where to look up licenses: Minnesota Department of Employment and Economic Development starting a business information.

How to register a business name in Minnesota

Check that the name is free first: state name search.

Also in Minnesota

• Paid Leave premium. Minnesota Paid Leave sets a premium rate of 0.88% of an employee's wages for 2026 and 2027, funded by employers and employees together. ¹⁵
• Paid Leave small employer rate. Minnesota Paid Leave sets a reduced premium rate of 0.66% of employee wages for 2026 and 2027 for small employers, who employ 30 or fewer workers in each quarter and meet a wage limit. ¹⁶

More for Minnesota

• LLC guide
• Corporation guide
• Minnesota LLC cost
• Name search
• Registered agent
• Minnesota sales tax permit
• Annual report
• S corp or C corp

Common questions