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Business Registration Overview
Do I need a Minnesota tax ID?
Yes, if your business is a Partnership or Corporation, or an LLC either with multiple members or one member filing the LLC's income as a C Corporation or S Corporation. Yes, if your business sells taxable items or services retail in Minnesota. Yes, if your business has employees who are Minnesota residents receiving a W2.
Is there anything I need to obtain before I get a Minnesota tax ID?
If the business is an LLC, Corporation, or a business with an assumed name different from the owner's name, you must first register the business with the Secretary of State's office. Call them at 877-551-6767 or 651-296-2803 to do so. If the business is required to obtain a federal tax ID, you must also obtain that number first. Call the IRS at 800-829-4933 to do so. To determine whether you require a FEIN or not, see below.
Is registering for a MN Tax ID free?
Yes.
How long does it take to register?
Approximately 15 minutes online or by phone, paper applications are processed in 2-3 days and a confirmation letter is sent to the business mailing address in 5-7 business days.
When will I get my ID number?
Instantly, when registering online (an e-mail is sent when complete) or when registering by phone. If registering by paper ABR form, your registration will be processed in 2-3 days and a confirmation letter will be mailed to the business mailing address.
Does my business need to be registered with the Secretary of State?
Yes, if you operate a limited liability company or limited liability partnership (LLC or LLP/LLLP); you must file Articles of Organization. Yes, if you operate a corporation or non-profit organization; you must file Articles of Incorporation. Yes, if your business name is different from your legal name; you must file for a Certificate of Assumed Name. This is common for Sole Proprietors or Partnerships.
What is an FEIN?
A FEIN, or Federal Employer Identification Number, is a business identification number issued by the IRS. You may apply for a FEIN even if you do not have employees and/or are not required to a file a business income tax return (e.g. corporation or partnership).
Do I need a Federal Tax ID?
Yes, if you have employees or if you are a corporation, partnership, estate/trust (fiduciary), or an LLC filing as either a partnership or corporation. All multi-member LLCs are required to have a federal ID.
What number do I call to register?
Dial 800-657-3605 or 651-282-5225. At the prompts press 4 to speak to an agent. To hear our website address press 1. To hear the phone numbers to phone file your taxes, or to hear the numbers for the IRS, Secretary of State, or Minnesota Unemployment office, press 2.
Is my Secretary of State charter number the same thing as a Minnesota tax ID?
No. The charter number is used only by the Secretary of State's office. To see if your business requires a Minnesota tax ID, see above.
What should I do if I buy or acquire a business?
If you buy or acquire a business or its assets, it is your responsibility to check for sales or withholding tax liens filed against it by the Minnesota Department of Revenue. If you don't, you may be liable for the delinquent taxes of the business. This is true even if the acquisition is a gift. More information on business successor liability is available in our 
Business Successor Liability fact sheet.
For a brief overview of the different types of entity choices available when starting a new business, see Business Entities: An Overview.
What's the difference between a Minnesota tax ID, sales tax permit and employer ID?
Minnesota does not have a separate sales tax permit or employer ID number.
If you have a Minnesota tax ID and are registered to collect sales tax, your registration confirmation letter serves as your sales tax permit. You are not required to display this letter, but your suppliers may require you to provide them with a copy for their records.
You may also hear the Minnesota tax ID called other things, such as "sales tax exempt number," "resale exemption number," "seller's permit" or "business license." This is merely a difference in terminology, something you may encounter particularly if you deal with suppliers from other states. If you have your Minnesota tax ID and are registered for the tax types you need to file and pay or collect and remit, you do not need to apply for any additional numbers from the Department of Revenue.
If you are registered to collect income tax withholding, your Minnesota tax ID also serves as your Minnesota employer ID; however, you may also be required to register with the Department of Employment and Economic Development (DEED) for unemployment insurance. For more information, go to DEED's website.
How will you use my registration information?
Under Minnesota Statute 270B and the Minnesota Government Data Practices Act, most information on your application is nonpublic. Nonpublic information may not be given to others without your consent, except to the Internal Revenue Service (IRS), other state agencies or other states which guarantee the same privacy.
Information requested to obtain a Minnesota tax ID number may be used to contact your business or in connection with an audit of any tax return you may be required to file with the Minnesota Department of Revenue. The information concerning business owners or corporate officers, including Social Security numbers, may be used to collect any delinquent sales, withholding and/or MinnesotaCare taxes.
Information required to apply for a Minnesota tax ID are:
- Your legal organization
- Your Federal employer ID number (FEIN), if applicable
- The legal name of the business (If the business is a sole proprietorship, this is the owner's name)
- The name and Social Security number of the owner or officers of the business (required under Minnesota Statute 270C.306 and Rule 8130.2500, subp.6)
- The physical (street) address where your business is located
- Type of goods and/or services provided
- What types of tax you will be filing (e.g., sales tax or withholding) and, if you will be collecting sales tax, whether you expect to file monthly, quarterly or annually (if you are unsure, we can help you determine this), and the date on which you expect to begin collecting each tax type
- A contact person including a phone number and an e-mail address
- There may be additional required information based on your legal organization and the types of taxes for which you register. You will not be able to obtain a Minnesota tax ID using the online registration process unless you provide all required Information.
Note: We do not sell mailing lists of registered businesses.
How often do I have to renew my Minnesota tax ID number or re-register?
Tax identification numbers do not expire. You are not required to renew or update your registration unless you have changes to report (e.g., change of: address, name, officers, phone numbers, types of business taxes collected).
To report changes in your business, you may call us at 651-282-5225. Telephone assistance is available from 8:00 a.m. to 4:00 p.m., Monday through Friday. To notify us by mail or fax, print out a Notice of Business Change form and fax it to 651-297-2265, or mail it to:
MN Dept of Revenue
Mail Station 4410
St Paul, MN 55146-4410
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Legal Organizations
What legal organization am I?
A sole proprietor is a business owned by one person only. That one person is 100% liable for the debts and income of the business. A partnership is a business owned by two or more people. It can be a General Partnership, in which all owners have an equal share, or it may be a Limited Partnership (LP)or Limited Liability Partnership (LLP), in which one partner is a General, or majority partner, and one or more other partners are limited in their share of ownership up to the percentage of their investment in the business. All partnerships must obtain a federal tax ID. A Limited Liability Corporation (LLC) is a business owned by one or more people in which the owners have limited liability for the debts of the business, because the business itself is primarily liable. All LLCs must file Articles of Organization with the Secretary of State and obtain a federal tax ID. A Corporation is a business which has shareholders who own shares of the business. It may have as many owners and classes of stock as the Secretary of State and the IRS allow it to.
What do I need to do to become an LLC/Corporation?
All LLCs and Corporations must first file the Articles of Organization or Incorporation, respectively, with the Secretary of State's office. Once this is done, the LLC or Corporation must also obtain a federal tax ID. Finally, the business must also register for a Minnesota tax ID as well.
What is the difference between <Legal Organization> and an LLC filing its income as a <Legal Organization>?
An LLC is a different legal organization from other types of businesses, however, the LLC does not have its own tax form. An LLC must choose how it will file the income of the business, based on how many members the LLC has. If the LLC has one member only, it may choose to file its income on the tax return for a C Corporation, an S Corporation, or on the owner's individual income taxes. If the LLC has more than one member, it may choose to file its income on the tax return for a Partnership, C Corporation, or S Corporation.
What is the difference between a C Corporation and an S Corporation?
A C Corporation is the standard corporation. It can have as many shareholders and classes of stock as the Articles of Incorporation allow for. An S Corporation, however, is much smaller and much more limited. It can only have up to 100 shareholders in one class of stock. All S Corporations must also elect to file as such by filing form 2553 with the IRS.
Does my legal organization require a federal tax ID (FEIN)? How can I obtain one?
Yes, if you have employees or if you are a corporation, partnership, estate/trust (fiduciary), or an LLC filing as either a partnership or corporation. All multi-member LLCs are required to have a federal ID.
My business has changed its legal organization. What do I need to do?
If the business has become an LLC or Corporation, the new business must register with the Secretary of State's office first. Secondly, you must contact the IRS to determine if they will allow the business to keep the same federal tax ID through the legal organization change. Finally, you must then contact our office. Based on whether the IRS allowed you to keep the same FEIN, we may have to issue a new Minnesota tax ID for the business as well.
If I have more than one business as a sole proprietor, do I need to have more than one Minnesota tax ID?
A sole proprietor is only issued one Minnesota tax ID no matter how many businesses the proprietor owns.
How do I register my legal organization in Minnesota?
To register your LLC or Corporation, or the name of your Partnership or sole proprietorship, contact the Secretary of State's office at 877-551-6767 or 651-296-2803.
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Business Names
Do I have to have a name for my business?
If the business is an LLC or Corporation, you must register the name with the Secretary of State. If the business is a sole proprietor or a partnership with a name different from the owner's name (i.e. John Smith Towing versus Minnesota Towing) you must also register the assumed name of the business.
How and where do I register the name of my business?
If the business is an LLC, Corporation, or a business with an assumed name different from the owner's name, you must first register the business with the Secretary of State's office. Call them at 877-551-6767 or 651-296-2803 to do so. If the business is required to obtain a federal tax ID, you must also obtain that number first. Call the IRS at 800-829-4933 to do so. To determine whether you require a FEIN or not, see below.
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Sales & Use Tax
Am I required to collect sales tax for my business?
Yes, if your business sells taxable items or services in Minnesota. If you sell taxable items or services online from a Minnesota location, you must also collect Minnesota sales tax.
What is the difference between sales tax and use tax?
Sales tax is collected if the item or service being sold is taxable and supplied to the end user. If the item or service is not taxable, or it is sold for resale, no sales tax should be collected. Use tax is the complement to sales tax. Use tax should be paid if the business purchases items for use in the business (not for resale) without paying sales tax on them.
How can I determine the sales tax rate I should be collecting?
You may determine the sales tax rate for a particular location here: http://int-extportal/businesses/sut/Pages/SalesTaxCalculator.aspx. You must enter the full 9 digit ZIP code in order to obtain accurate results. Alternatively, Sales Tax Fact Sheets 164, 164M, and 164S list all local taxes in the state of Minnesota.
How can I purchase items for resale exempt from sales tax?
Fill out the ST-3 exemption certificate and give it to the seller.
How do I know which local taxes apply for my business?
Sales Tax Fact Sheets 164, 164M, and 164S can be found on our website, and detail all local taxes within the state of Minnesota. Local taxes apply to any business location inside a local taxing area, any business which travels to an area with a local tax, or any business selling online which has a business location inside a local taxing area.
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Withholding Tax
Am I required to collect withholding tax for my business?
Yes, if you have employees receiving a W2.
What is the difference between an employee receiving a 1099 and one receiving a W2?
A W2 is a statement given to the employee stating that the employer has withheld state and federal taxes out of the employee's wages. If no taxes are withheld from employee wages, then the employee should receive a 1099. If the employee is receiving a 1099, then the employee is liable for any taxes that should be paid.
I heard that the Withholding tax needs to be filed quarterly but payments need to be made monthly. Is that true?
Yes, Minnesota follows the federal Withholding guidelines for filing and paying.
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Unemployment Insurance Registration
Where can I register for Unemployment tax?
You may register as an employer collecting Unemployment tax here: http://www.uimn.org/
Do I need to have a Minnesota tax ID for Withholding before I can apply for unemployment?
Yes.
Can I register for unemployment before I start paying wages?
No, the Unemployment office requires that payroll must begin before you can apply for Unemployment.
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MNCare Provider Tax
Am I required to collect the MNCare/Provider tax?
Yes, if your business provides medical, surgical, optical, visual, dental, hearing, nursing, drugs, laboratory, diagnostic, or therapeutic services directly to a patient.
In addition to providing Clinic services, our business also contains a pharmacy. Are there other taxes that apply?
Other MinnesotaCare taxes apply if the business is a hospital or surgical center, eligible to receive Medical Assistance reimbursement, a seller of legend drugs in Minnesota, a seller of hearing aids or prescription eyewear, or a pharmacy purchasing legend drugs from a wholesaler which is not subject to MinnesotaCare tax.
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Partnership, S-Corp, Corp Taxes
What is the difference between a Partnership, a C Corporation, and an S Corporation?
A partnership is a business owned by two or more people. It can be a General Partnership, in which all owners have an equal share, or it may be a Limited Partnership (LP)or Limited Liability Partnership (LLP), in which one partner is a General, or majority partner, and one or more other partners are limited in their share of ownership up to the percentage of their investment in the business. A C Corporation is the standard corporation. It can have as many shareholders and classes of stock as the Articles of Incorporation allow for. An S Corporation, however, is much smaller and much more limited. It can only have up to 100 shareholders in one class of stock. All S Corporations must also elect to file as such by filing form 2553 with the IRS.
How do I know which tax forms the IRS and Minnesota Revenue expects me to file?
If you are a sole proprietor or a 1 member LLC filing your income on the owner's individual income taxes, file on your federal form 1040 Schedule C and your Minnesota form M1. If the business is a Partnership or a multi-member LLC filing as a partnership, file federal form 1065 and Minnesota form M3. If the business is a C Corporation or an LLC filing as a C Corporation , file federal form 1120 and Minnesota form M4. If the business is an S Corporation or an LLC filing as an S Corporation, file federal form 1120S and Minnesota form M8. In order to file as an S Corporation, you must first elect to do so by filing federal form 2553 with the IRS.
Does my business have Nexus in Minnesota? What does that mean?
By definition, nexus is a connection or a link. If you "maintain a place of business in Minnesota", you are said to have nexus. Your business may have nexus in Minnesota if you, or a representative of your company, performs business activities in Minnesota. Even if your business does not have a physical presence in Minnesota, you may also have an affiliated entity that creates nexus for your business. See Sales and Use Tax Revenue Notice 00-10, Sales and Use Tax – Nexus Standards, for detailed information.
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Other tax types
What is the difference between Estate Tax and the Fiduciary Tax an Estate pays?
Estate Tax is a one time filing which is done the first year after a person becomes deceased. Fiduciary tax encompasses the income tax for Estates and Trusts, and can be active for more than one year. In the case of an estate, the Fiduciary account would remain open until the estate is closed and no longer earning income of any kind.
My business sells insurance. What taxes do I need to be registered for?
If you are an insurance company of insurance surplus lines provider licensed in MN, a HMO, or a nonprofit health plan corporation, you must file insurance taxes. Some or all of these insurance taxes may apply: Insurance Premium, Auto Theft Prevention Surcharge, Fire Safety Surcharge, Firefighter Relief Surcharge, HMO Insurance Premium, Surplus Lines, or Unauthorized User (if you are licensed to buy insurance from an unlicensed company.)
My business is a liquor distributor. What taxes do I need to be registered for? Do I also need sales tax if I sell retail?
If you are a distributor of distilled spirits, malt beverages, or wine, the appropriate special taxes apply. In addition, if you sell liquor retail, a 2 1/2 % tax on the liquor gross receipts also applies.
My business is a distributor of Petroleum/Gasoline. What taxes do I need to be registered for?
You must be registered for Petroleum tax if you are a distributor of Gasoline, Special or Alternative Fuels, or Propane.
My business is a tobacco and cigarette shop. What taxes do I need to be registered for?
If you sell tobacco or cigarettes, you must file and pay the Tobacco or Cigarette taxes, respectively. Additionally, you must also collect sales tax when you sell the products to the end user.
How do I register an Estate or Trust?
All Estates and Trusts must first obtain a federal tax ID from the IRS. After that is done, the Estate or Trust may register for a Minnesota tax ID either by filling out the Application for Business Registration, Web-registering the estate or trust, or by calling 800-657-3605 or 651-282-5225.
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Non-Profit Organizations
Does my nonprofit organization require a Minnesota tax ID?
Yes, if your business is a Partnership or Corporation, or an LLC either with multiple members or one member filing the LLC's income as a C Corporation or S Corporation. Yes, if your business sells taxable items or services retail in Minnesota. Yes, if your business has employees who are Minnesota residents receiving a W2.
How do I apply for Nonprofit Exempt Status for sales tax?
This form , Form ST16, can be downloaded off our website, taxes.state.mn.us, by typing "ST16" in the search field at the top of the page, or you may call us at 800-657-3605 or 651-282-5225 and we can mail a copy to you.
Should my nonprofit organization be filing Unrelated Business Income tax or Corporate Franchise tax? Am I required to file income tax in Minnesota at all?
When the nonprofit obtained a federal tax ID, the IRS sent a letter indicating which federal tax form to file. If you should file an 1120 or 1120S, your nonprofit should be filing as a C Corp or S Corp, respectively, with our office as well. However, if you should file a 990-T, 1120-H, 1120-POL, or 1120-C, then you should register for Minnesota Unrelated Business Income Tax instead. If you are not filing one of these forms with the IRS, you do not need to file the income of your nonprofit with the state of Minnesota.
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I want to register my business for a Minnesota tax ID on paper. What form do I use?
Form ABR, the Application for Business Registration. You may call us at 800-657-3605 or 651-282-5225 and we can mail a copy to you.
I need to register my business with the Secretary of State. What forms do I need to fill out?
To find a list of all forms the Minnesota Secretary of State may require, go to http://www.sos.state.mn.us/index.aspx?page=86
I need to apply for a federal tax ID (FEIN). What forms do I need to fill out?
You may either fill out federal form SS-4, or you may call the IRS at 800-829-4933, or you may apply for a FEIN online at http://www.irs.gov/businesses/small/article/0,,id=102767,00.html?portlet=4
What form can I send to inform you of changes in my business?
You may send Form ST30, the Notice of Business Change, to our office to notify us of changes to your business.
How can I inform your office of my address change?
If you submit an address change request with the Post Office, we are notified. You may also mail in correspondence to that effect, to: Minnesota Department of Revenue, Mail Station 4410, St. Paul, MN 55146-4410, or you may fax it to 651-556-5155.
What form do I use to purchase items for resale exempt from sales tax?
Form ST3, the Certificate of Exemption. Give this form to your supplier and they will keep it on file.
I'm doing a craft show and the event organizer gave me an Operator Certificate of Compliance, ST19 to fill out. What is this?
The ST19 is a form the event organizers keep on file to be sure that everyone at the event is collecting sales tax, if they are required to do so. Print Form ST19, enter your business' information on the form and give it to the event organizer.
How do I know which federal and state forms to file for the income of my business?
If you are a sole proprietor or a 1 member LLC filing your income on the owner's individual income taxes, file on your federal form 1040 Schedule C and your Minnesota form M1. If the business is a Partnership or a multi-member LLC filing as a partnership, file federal form 1065 and Minnesota form M3. If the business is a C Corporation or an LLC filing as a C Corporation , file federal form 1120 and Minnesota form M4. If the business is an S Corporation or an LLC filing as an S Corporation, file federal form 1120S and Minnesota form M8. In order to file as an S Corporation, you must first elect to do so by filing federal form 2553 with the IRS.
Is there a paper form to file sales tax or withholding tax?
No, sales and withholding taxes are among the taxes filed through e-Services or phone filing systems only.
Am I required to display my Minnesota tax ID at my place of business?
The Minnesota tax ID is not required to be displayed, however, it is a good idea to keep a copy of your tax ID letter on file at the business in case someone asks to see it.
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e-Services (file & pay; updates)
How can I file my business taxes online?
Which taxes can I make payments for online? How?
To see a comprehensive list of which taxes can be filed and paid online, go here: Eligible e-Services Minnesota Tax Types
How can I update my business online?
To update business information online, log in to eFile using your Minnesota ID and password, and then click "Update Business Information" from the eFile main menu. If you wish to update other information and cannot do it online, you may call our office at 800-657-3605 or 651-282-5225 or you may also submit form ST30, the Notice of Business Change, to our office.
What information about my business can I update online?
You can update addresses, phone numbers, contact information and other basic information. You can also add new tax types to your account or end taxes if necessary. If you close your business, you can cancel your Minnesota tax ID number using the update feature.
How can I reset my password to log in to file my taxes?
If you input an incorrect password, our system will allow you to answer a hint question. If you input an incorrect password too many times or answer the hint question incorrectly, you must call our office at 800-657-3605 or 651-282-5225 to unlock your eFile account.
I see a message telling me I need a temporary password the first time I log in, but I Web-registered. Do I use the password I set up during Web-Registration, or is there a different password I should use?
If you Web-registered, use the password you set up during Web-registration. This is your permanent password to access our system.
I received a confirmation letter in the mail with a temporary password on it. When should I use this? Is this password good more than once?
The temporary password is good the very first time you log in to our eFile or phone filing system. As soon as you log in with the temporary password, the system will require you to change the password to something only you know. The password you create will be good for two years or until the account becomes locked from too many incorrect password attempts.
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Online Registration (WebReg)
How can I register my business for a Minnesota tax ID online?
The webpage to register online is here: https://www.mndor.state.mn.us/tp/webreg.html
I tried to register and a message appeared stating, "You cannot continue to use this process." What do I do?
Usually, this means that the business already has a Minnesota tax ID. Call our office at 800-657-3605 or 651-282-5225 and press 4 to speak to a customer service representative.
I had a Minnesota tax ID before, but it has been inactive for some time. Do I need a new Minnesota tax ID, or can I reactivate the old one?
Contact our office at 800-657-3605 or 651-282-5225 and tell us what your tax ID was. If it is still in our systems, we can reactivate it, however, if it has been inactive for too long, we will have to issue a new ID instead.
What is an NAICS code? How can I find this information?
The NAICS code is a code issued by the Census Bureau that tells us what your business does. To find your code, go to http://www.census.gov/eos/www/naics/ and enter keywords describing your business in the NAICS 2007 search field on the left side of the page. Please be sure to enter a complete and valid six-digit NAICS code, as our system will not allow you to enter a shorter code.
Who can I contact if I have questions about the Web-Registration?
You may email our office at Business.Registration@state.mn.us or contact us by phone at 800-657-3605 or 651-282-5225."
I submitted a Web-Registration and have not yet received my Minnesota tax ID. What should I do?
After Web-registering, you should receive a confirmation email with the tax ID within one business day. If this time has elapsed with no email, there may have been an issue with the email address that was input, or a system problem may have delayed your registration. Contact our office at 800-657-3605 or 651-282-5225 to obtain the tax ID.
Why is the online registration asking me for a Minnesota Tax ID?
If you indicate that the business you are registering is owned by another corporation or partnership, you will be prompted to enter the Minnesota tax ID of the entity that owns the entity being registered. If you made this selection in error, undo this selection and continue with the registration. If the corporate or partnership owner does not have a Minnesota tax ID, call the Registration Services office at 651-282-5225 for further assistance.
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