How to Start a Craft Brewery in Minnesota: State Brewer License and City Taproom License

If you want to know how to start a craft brewery business in Minnesota, the process has two licensing layers that new brewers often mix up. The first is the state brewer license, issued by the Alcohol and Gambling Enforcement Division (AGED), which lets you make beer and sell it. The second is the city taproom license, issued by the city where your brewery sits, which lets you sell your own beer by the glass on the premises. You need the state license before you can sell anything. You need the taproom license on top only if you want to pour at your brewery.

Minnesota has no general statewide business license. Filing your company with the Secretary of State is a filing, not a license. Registering with the Department of Revenue for a tax ID is a registration, not a license. Brewing is licensed by activity, so your real job is to identify each license your brewery needs and apply for them in the right order.

Disclaimer: This article is informational content, not legal or tax advice. Fees, city schedules and rules change. Confirm every figure with the agency named before you spend money, and talk with a qualified attorney and a CPA about your ownership, lease and tax situation.

What You Need Before You Start

Gather these items before you file anything.

Paperwork

• Your proposed brewery name, checked against Secretary of State records
• Articles of Organization for an LLC, or Articles of Incorporation for a corporation
• A Minnesota street address for your registered office
• A planned production volume in barrels per year, because the state brewer license fee depends on it
• Written zoning confirmation for your site from the city or county
• A federal brewer's notice, which you confirm with the Alcohol and Tobacco Tax and Trade Bureau (TTB)

Brewing inputs and equipment

• Malt, hops, water and yeast for your first recipes
• A brewhouse, fermenters and cold storage sized to your production plan
• Sanitation supplies and a testing plan for each batch
• Kegs, cans or bottles, plus a labeling process

Step-by-Step: Starting Your Brewery

Step 1: Form your entity with the Secretary of State

Most craft breweries form a limited liability company. Filing Articles of Organization costs $155 online or in person and $135 by mail. Online and in-person filings are expedited, and mail filings are not. The Secretary of State does not publish a guaranteed turnaround in business days, so plan for variable processing time. Your name must contain the words limited liability company or the abbreviation LLC. It may not contain corporation or incorporated, or their abbreviations. It also must be distinguishable from every domestic LLC, LLP, corporation and limited partnership already on file, registered or reserved in Minnesota.

If you need time to decide on a name, a name reservation costs $55 and lasts 12 months. It can be renewed for additional 12 month periods. Forming an LLC or corporation does not require newspaper publication.

Minnesota requires a registered office at a Minnesota street address. A PO box alone is not accepted. The registered office does not have to match your brewery address. Naming a registered agent is optional for a Minnesota entity.

Every LLC also files an Annual Renewal. It costs $0 when the entity is active and in good standing, but it is due December 31 every year. Missing that date terminates the LLC without further notice, so put it on your calendar the day you form.

If you will sell under a brand name that differs from your legal name, you also need a Certificate of Assumed Name (DBA). It costs $50 online or in person, or $30 by mail. After filing, the certificate must be published for two consecutive issues in a qualified legal newspaper in the county of your principal place of business. Failure to publish may render the certificate invalid. The DBA must be renewed annually at no charge.

Step 2: Register with the Department of Revenue

Register for a Minnesota tax ID and a sales and use tax account before you make any taxable sales. The state sales tax rate is 6.875 percent, and local taxes are added on top. Ask Revenue which sales and excise obligations apply to your taproom sales and to any beer you sell to others. Your entity choice also drives your income tax:

• An LLC taxed as a partnership or disregarded entity passes income through to its owners, who pay individual income tax at 5.35 to 9.85 percent.
• An LLC that files federally as a C corporation pays the 9.8 percent corporation franchise tax.
• A minimum fee under Minn. Stat. 290.0922 applies to C corporations, S corporations and partnerships. Single member LLCs that report only on the member's individual return are exempt. Confirm the amount for your year on the Revenue site.

This is general information. A CPA should model the options against your expected revenue before you pick a structure.

Step 3: Confirm your federal brewer's notice with TTB

Federal rules for brewers are separate from Minnesota rules. Before you commit to a production date, check with the TTB whether you must file a brewer's notice, what it requires, and when it must be in place. Do not plan a launch date around an assumed federal timeline. Get the current answer from the TTB directly.

Step 4: Confirm zoning and the local license category

Minnesota has 87 counties, about 853 cities and about 1,780 townships. The location of your building decides who approves your zoning and who issues your local license. Inside a city, the city handles both. Minneapolis and St. Paul license by category, and neither issues a general business license, so you apply for the specific license that matches your use.

If your site is in an unincorporated area or a township, confirm with the county or township who handles zoning and any local license. Ask in writing whether brewery manufacturing and an on-site taproom are permitted at the address, and whether a conditional use permit or other approval is needed. Get that answer before you sign a lease.

Step 5: Apply for the AGED state brewer license

The state brewer license is the foundation. AGED sets the fee by your annual production volume under Minn. Stat. 340A.301 subd. 6:

Annual production	State brewer license fee
Under 2,000 barrels	$150
2,000 to 3,500 barrels	$500
Over 3,500 barrels	$4,000

Choose your volume class from a realistic production plan, not a hope. Ask AGED how barrels are measured and when the class is reviewed, because a brewery that grows into a higher class will need to plan for the higher fee.

A brewpub license is a different license and costs $500 per premises. Confirm with AGED which license fits your plan before you apply, because the taproom rules below attach to a brewer's license.

Step 6: Apply for the city taproom license

A taproom license is issued by the city to a licensed brewer, and it is available in any of the three state volume classes. It authorizes on-sale of your own malt liquor at or next to one brewery location. A brewer may hold only one taproom. Several conditions apply:

• It is not available to a brewer producing more than 250,000 barrels a year.
• It is not available to a brewer that holds an interest in a brewpub. See Minn. Stat. 340A.26.
• Sunday sales are allowed only if the city authorizes them.
• A taproom and a distillery cocktail room cannot be located together or held by one entity.

The city fee is capped under Minn. Stat. 340A.408, but caps differ from actual fees. The amount you pay depends on your city's current schedule. Two examples from 2026:

• St. Paul brewery taproom: $712
• Minneapolis taproom: $1,318, $2,704 or $5,061, depending on the entertainment tier you select (2026 city schedule, check the current schedule before you budget)

Ask the city clerk or licensing office which tier your plan falls into. Entertainment plans that change later can change your tier, so describe your live music, events and hours accurately from the start.

Step 7: Add the remaining trade and activity licenses

Search License Minnesota at mn.gov/elicense by topic, by agency or through the A to Z index. Your operations determine which additional approvals apply. Confirm each one with the agency involved. Common possibilities include:

• Minnesota Department of Health (MDH) for on-site food service, if you serve food
• Minnesota Department of Agriculture (MDA) for food manufacturing, if you make food products beyond beer
• Department of Labor and Industry (DLI) for workplace and equipment requirements
• MnDOT or DVS for delivery vehicle and driver requirements, if you deliver beer

Your city may also require a separate food or health license for the taproom kitchen, so ask before you design the space.

Step 8: Open, file and renew on schedule

Build a compliance calendar before opening. Include the December 31 Annual Renewal, the annual DBA renewal if you filed one, your sales tax filing schedule from Revenue, and the renewal dates for your AGED license and city taproom license. Renewal timing differs by agency and city, so get each date in writing. Verify that your entity is active on the Secretary of State business search at mblsportal.sos.mn.gov/Business/Search.

Tips and Common Mistakes

• Treating the state license and the taproom license as one application. They come from different agencies, on different timelines.
• Signing a lease before zoning and taproom approval. Get written answers first, because a site that cannot host a taproom changes your business model.
• Choosing a volume class that is too low. Plan for realistic growth and confirm with AGED what happens if you exceed your class.
• Assuming you can open a cocktail room next door. A taproom and a distillery cocktail room cannot be co-located or held by one entity.
• Assuming Sunday sales are automatic. Sunday taproom hours require city authorization.
• Skipping the DBA newspaper publication. A DBA that is not published may be invalid, which can undermine your brand filings.
• Looking for a statewide business license. Minnesota does not issue one. Your work is finding the activity-based licenses that apply.
• Treating the TTB as an afterthought. Confirm federal requirements early, because they run separately from state and city steps.
• Choosing a name without a search. Check Secretary of State records for conflicts before you order signs, cans or labels.

What Results to Expect

When your entity, tax registration, federal notice, state brewer license and any taproom approval are in place, you may be able to brew and sell beer lawfully from your location, and, where the city permits, pour your own beer on site. The exact results of a brewery depend on your recipes, location, market, pricing and management. This guide cannot predict those outcomes, and no license guarantees a business result. Many new brewers find that the licensing work takes longer than expected, so build that time into your launch plan.

This article makes no health or medical claims about beer. Discuss product labeling and any health-related statements with the agencies and an attorney before you publish them.

Fee Summary

Item	Agency	Cost	Notes
Articles of Organization (LLC)	Secretary of State	$155 online or in person; $135 by mail	Online and in-person filings are expedited
Annual Renewal	Secretary of State	$0	Due December 31 every year
Name reservation	Secretary of State	$55	12 months, renewable
Assumed name (DBA)	Secretary of State	$50 online or in person; $30 by mail	Must be published for two consecutive issues
Sales and use tax	Department of Revenue	6.875 percent state rate plus local taxes	Register before taxable sales
State brewer license	AGED	$150, $500 or $4,000	Set by annual barrel volume
Brewpub license	AGED	$500	Per premises
Taproom license (St. Paul)	City of St. Paul	$712	2026 city schedule
Taproom license (Minneapolis)	City of Minneapolis	$1,318, $2,704 or $5,061	By entertainment tier, 2026 schedule, check current
Federal brewer's notice	TTB	Confirm with TTB	Confirm requirements and timing directly

Official Resources

• Minnesota Secretary of State: https://www.sos.mn.gov/
• Business Filings Online (MBLS): https://mblsportal.sos.mn.gov/Business/Search
• Minnesota Department of Revenue: https://www.revenue.state.mn.us/
• Revenue new business registration: https://www.mndor.state.mn.us/tp/eservices/_/?link=NewBusinessReg
• License Minnesota: mn.gov/elicense
• Minnesota Small Business Development Center Network: https://mn.gov/deed/business/help/sbdc/

This article is informational content, not legal or tax advice. Confirm all fees, deadlines and license requirements with the named agency or city, and consult a qualified attorney and CPA before you form your company or sign a lease.