Minnesota Contractor License Guide: Residential License, Roofer, Registration and the Trades

Minnesota does not issue a general contractor license. Whether you need a state license depends on the trade you perform, the type of property you work on, and how much residential work you take. This guide covers the rules for residential building contractors and remodelers, roofers, contractors who only need to register, and the electrical and plumbing trades. The fees below come from the Department of Labor and Industry (DLI) fee schedule effective July 1, 2025.

Disclaimer: This guide is informational only. It is not legal or tax advice. Fees and rules change, so confirm every figure with the agency named before you apply. For complex situations, consult a qualified attorney or CPA.

Minnesota has no general business license

Minnesota has no general statewide business license. Three common steps are often mistaken for one, but none of them is a license:

• Forming an LLC or corporation with the Secretary of State is a filing.
• Registering with the Department of Revenue for a Minnesota Tax ID and sales tax account is a tax registration.
• Filing a certificate of assumed name is a filing.

Contractor licensing is handled by trade. DLI is the main agency for construction trades. Other agencies license activities outside construction, including the Department of Health (MDH), the Department of Agriculture (MDA), the Department of Children, Youth, and Families (DCYF), the Office of Cannabis Management, the Alcohol and Gambling Enforcement Division, MnDOT, Driver and Vehicle Services (DVS), and the professional boards. Cities and counties add zoning rules and their own licenses by category. The central lookup for state licenses is License Minnesota at https://mn.gov/elicense.

Residential building contractor and remodeler license

If you contract directly with the owner of a 1 to 4 unit home for work in more than one of the eight special skills, you need a building contractor or remodeler license. Single-skill specialty work usually does not require this license. Confirm the list of eight special skills with DLI before you decide, because the answer depends on the work you actually perform.

The license cost is built from a base fee plus a Contractor Recovery Fund fee set by your gross receipts:

Item	Amount
Base license fee	$180
Recovery Fund fee, gross receipts under $1 million	$320
Recovery Fund fee, gross receipts $1 million to $5 million	$420
Recovery Fund fee, gross receipts over $5 million	$520
Total new license (by bracket)	$500, $600 or $700
Total renewal (by bracket)	$505, $605 or $705
Qualifying person exam	$50

Here is how the bracket works in practice. A remodeler with $2.4 million in gross receipts falls in the middle bracket, so the new license totals $600 and the renewal totals $605. Check the gross receipts figure DLI will use on the application before you pay, because it sets the total.

The Contractor Recovery Fund replaces the surety bond that many trades must post. Builders and remodelers therefore have no bond requirement for this license. Do not assume that means no financial requirement applies, though. The insurance rules below are separate and still apply.

Insurance and continuing education

• General liability of $100,000 per occurrence and $300,000 aggregate
• $25,000 property damage coverage
• Proof of workers' compensation coverage

The qualifying person must complete 14 hours of continuing education every two years. Confirm approved course rules with DLI before you schedule the classes.

The $10 Certificate of Exemption

A contractor whose residential receipts are under $15,000 can hold a $10 Certificate of Exemption instead of a full license. The exemption is narrow and is tied to the receipts figure, so confirm eligibility with DLI before you rely on it. If your receipts are close to the threshold or growing, plan for the full license early rather than waiting until you cross it.

Roofers need their own license

Roofing is the single-skill exception. Roofers need a state license even though the work is one specialty. The requirements are:

• License: $180 new, $185 renewal
• Qualifying person exam: $50
• Bond: $15,000
• Liability insurance: $300,000

If you also take general residential building work, ask DLI whether a roofer who does that work needs both licenses. Do not assume one license covers both.

Contractors who need no license must register

A specialty contractor that needs no state license must still register with DLI under Minn. Stat. 326B.701. Registration is the step small specialty contractors most often miss. This guide does not list a registration fee, so check DLI's current form and cost before you file.

Electrical and plumbing contractors

Electrical and plumbing are licensed through DLI as separate trades. The base license is $180, and the bond is $25,000. Each trade has its own classes, qualifying person rules and exams, and those differ by the type of work you do. Confirm which class fits your work with DLI before you apply, and ask about processing time before you commit to a start date.

What happens if you work without a license

DLI can fine unlicensed work up to $10,000 per violation under Minn. Stat. 326B.082. A fine is only one risk. Unlicensed work can also complicate contract disputes and insurance claims. If you are already working without a required license, talk to an attorney about your exposure and how to correct it.

Local licenses and permits

Minnesota has 87 counties, about 853 cities and about 1,780 townships. A state license does not replace a local permit. Many cities and counties require building permits for the work, and some require local contractor licenses by category. Minneapolis and St. Paul both license by category, and neither issues a general business license. Local rules vary, so check the city, county or township where the job is located before you bid it.

Business entity and name

If you bid and contract under a company name, two filings matter. Neither one is a license.

• LLC: Articles of Organization cost $155 online or in person, or $135 by mail. No publication is required. The name must contain 'limited liability company' or 'LLC' and cannot contain 'corporation' or 'incorporated'. The Annual Renewal costs $0 and is due December 31. Every Minnesota LLC needs a registered office at a Minnesota street address, and a PO box alone is not accepted.
• Assumed name (DBA): The certificate costs $50 online or in person, or $30 by mail. It is filed only with the Secretary of State. After filing, it must be published for two consecutive issues in a qualified legal newspaper in the county of your principal place of business, and failure to publish may make the certificate invalid. It renews annually at no charge.

Your license and your legal name have to line up on paperwork and contracts. Ask DLI whether the license must match the exact legal name on your LLC or corporate filing, and use the same name on your bids, invoices and insurance policies.

Taxes you will deal with

Register with the Department of Revenue for a Minnesota Tax ID. Before you make taxable sales, you also need a sales tax account. The state sales tax rate is 6.875%, and local taxes are added on top. Whether a particular contract or sale is taxable is a question for Revenue or a CPA.

Entity tax treatment also matters. An LLC taxed as a partnership or disregarded entity passes income through to its owners, who pay Minnesota individual income tax at rates from 5.35% to 9.85%. An LLC that files federally as a C corporation pays the 9.8% corporation franchise tax. A minimum fee under Minn. Stat. 290.0922 applies to C corporations, S corporations and partnerships. For 2026, it is $0 below 1,280,000 dollars of Minnesota property, payroll and sales, and it rises in brackets from there. Single-member LLCs that report only on the member's individual return are exempt. Talk to a CPA about which structure fits your business.

Checklist before you apply

1. Identify each trade you perform and the type of property you work on: a 1 to 4 unit home, roofing, electrical, plumbing, or a single specialty.
2. Search for each required license at License Minnesota: https://mn.gov/elicense
3. Confirm fees, forms and processing times with DLI, since fees are set by its schedule effective July 1, 2025.
4. Arrange liability insurance and workers' compensation coverage before you apply.
5. Form your entity and file any assumed name with the Secretary of State at https://www.sos.mn.gov/. Business search and online filing are at https://mblsportal.sos.mn.gov/Business/Search
6. Register with the Department of Revenue at https://www.revenue.state.mn.us/
7. Check the permit and license rules in the city, county or township where you will work.
8. If you want help with the plan, contact the Minnesota Small Business Development Center Network at https://mn.gov/deed/business/help/sbdc/

Confirm the final numbers with the agency

The figures in this guide come from DLI's fee schedule effective July 1, 2025, and from the Secretary of State and Department of Revenue. Agencies update fees and forms, so confirm current amounts before you pay. If your situation is complex, such as a mixed residential and commercial business, several entities working together, or a question about personal liability, consult a qualified attorney or CPA before you sign contracts or file.