In order to legally start a business in Minnesota, most small businesses only require a state tax permit and a local business permit. For specialty businesses, starting a business in Minnesota can require a number of permits at the state level.
Local Business Permit
In order to conduct a business Minnesota, all cities and counties in the state require a local business permit. Business permits give the owner of the business the legal right to conduct business activities in a municipality. The registration process is completed by filling out a simple application. Counties and cities may require inventory taxes to be paid annually in order to renew a local business permit.
Corporate Registration
If individuals in Minnesota want to start a business, they may use a sole proprietor business structure, which does not require any licensing. Minnesota requires all businesses which are organized as a corporation, non-profit organization, partnership or Limited Liability Company to register with the state.
Sales and Use License
Businesses selling goods and services within Minnesota must pay sales tax on everything that the business sells. Businesses will be given a Tax Identification Number in order to remit sales taxes. Small businesses usually file sales tax remittances every month.
Employee Withholding
A business larger than one person will be required to register with Minnesota in order to collect income tax withholding on behalf of their employees and the company. Businesses will also have to register an account with the state to pay unemployment insurance tax for employees who have been laid-off.
Financial Services
A number of specialty financial businesses require licensing by Minnesota before they can begin operations. A company dealing in financial securities has to submit notices before beginning operations. Banks, credit unions, debt collections and money transfer services must register with the state before opening.
Construction
Any resident in Minnesota starting a small business as a residential home renovator or builder must apply for a building contractor and re-modeler license from the state. A number of other construction businesses require licensing or permits, among them boiler work, elevator repair, road-building or repair and businesses working with storage tanks or explosives.
Other Registrations
Businesses selling or manufacturing alcohol beverages will require a variety of state licenses. Mining businesses require special permits before they can begin extracting metals from the earth. Aircraft dealers or pilots will require special vendor licensing and airplane registration. Child and adult care centers require a state permit in order to legally run a care center. Cigarette and tobacco vendors must fill out form CT101 to legally sell tobacco products. Funeral services require several licenses before they can legally operate in Minnesota.
