How to Sell THC Drinks and Hemp Edibles in Minnesota: Lower-Potency Hemp Edible Licenses

If you are looking into how to start a THC beverage business in Minnesota, the core question is whether you can sell THC drinks and hemp edibles legally, and what it takes. The answer is yes, under the state's lower-potency hemp edible (LPHE) license framework. The process runs through several agencies, not one, and the order you do things in matters. This guide walks through the steps, the fees we can verify, and the points where you need to confirm a figure with the agency before you spend money.

Informational only. This article is general information, not legal or tax advice. Hemp and THC rules change quickly, and federal and state rules were still in flux as of 2026. Confirm every fee, deadline and rule with the named agency, and talk with a Minnesota attorney and a CPA before you commit to a structure.

What the LPHE license covers

Minnesota has no general statewide business license. Forming an LLC with the Secretary of State is a filing, not a license, and a Department of Revenue tax registration is not a license either. To sell THC drinks and edibles, you need an LPHE license from the Office of Cannabis Management (OCM). There are three roles: manufacturer, wholesaler and retailer. You can hold more than one, but each carries its own fees and obligations.

The license categories are open and taken on an ongoing basis, so you apply when your plan is ready rather than during a set window. Check the current figures on the OCM license types page at mn.gov/ocm. The fees below are as listed on that page:

Role	Application fee	Initial fee	Renewal fee	What the role does
Manufacturer	$250	$1,000	$1,000	Makes the finished product
Wholesaler	$250	$10,000	$10,000	Moves product from manufacturers onward
Retailer	$250 per location	$250 per location	$250 per location	Sells to adults 21 and older

OCM lists the retailer fee per location. Confirm with OCM whether it applies separately to the application, the initial license and renewal.

Three rules shape everything that follows:

• Sales are limited to adults 21 and older.
• An LPHE holder cannot also hold a cannabis business license.
• An LPHE holder may hold food, tobacco and alcohol licenses. That matters if you already run a food business or plan a taproom.

Materials and information you need before you start

Gather these before you touch an application. A missing item can stall a filing for weeks.

• A product list with recipes or formulas, the THC amount you intend per serving and per package, and your ingredient sources.
• Your intended business name, checked in the Secretary of State business search at mblsportal.sos.mn.gov/Business/Search.
• A Minnesota street address for your registered office. A PO box by itself is not accepted.
• Names, addresses and ownership percentages for every owner.
• An IRS employer identification number for the entity.
• A budget that covers formation, the license, local registration, insurance and the first months of inventory.
• Written answers from OCM on the current per-serving and per-package THC limits, and on the labeling, packaging and testing rules for your product. Check these with OCM. Do not rely on a figure from a blog post or a supplier's sheet.
• A License Minnesota search at mn.gov/elicense to find every other license your activity needs.

Step by step: from entity to first sale

Step 1: Choose your role and your entity

Decide whether you will make the product, distribute it, sell it at retail, or do some combination. The role determines which license you apply for and what you pay. Then choose the entity. An LLC is the most common choice for small operators, and a corporation is also possible. Under Minnesota rules, 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. Which rule applies depends on your federal tax classification, so ask a CPA before you choose.

Step 2: Form the entity with the Secretary of State

Filing Articles of Organization costs $155 online or in person, which is expedited, or $135 by mail, which is not. The name must include the words limited liability company or the abbreviation LLC. It cannot include corporation or incorporated, or their abbreviations, and it must be distinguishable from every entity already on file in Minnesota. If you need time to decide, you can reserve the name for 12 months for $55. Forming an LLC does not require a newspaper publication.

You must have a Minnesota street address as your registered office. A registered agent is optional for a Minnesota LLC. The yearly filing is an Annual Renewal that costs $0 and is due every December 31. If you miss it, the LLC is terminated or revoked without further notice. Reinstatement costs $65 by mail or $85 online or in person under the current Secretary of State fee schedule. Put the December 31 date in your calendar the day you file.

If you will sell under a name other than the LLC's legal name, you need a Certificate of Assumed Name. It costs $50 online or in person, or $30 by mail, and you file it with the Secretary of State's Business Services office. Then you must publish it for two consecutive issues in the legal notices section of a qualified newspaper in the county of your principal place of business. Minnesota has 87 counties, so the paper depends on where you operate. Skipping publication can make the certificate invalid. The certificate must be renewed each year at no charge.

Step 3: Register with the Department of Revenue

Before you make any taxable sale, register with the Minnesota Department of Revenue for a Minnesota Tax ID and a Sales and Use Tax account. This registration is not a license, but you need it before you sell anything taxable. The state sales tax rate is 6.875 percent, and local taxes are added on top. Confirm the combined rate for your address before you program your point of sale. Start at revenue.state.mn.us, or go straight to the new business registration page.

Step 4: Confirm your product fits the LPHE category

Whether a product qualifies depends on its THC content and form, so get the current limits in writing from OCM before you design labels or sign a co-packing agreement. Ask OCM which product types fall in the category, including beverages, and which labeling, packaging and testing rules apply. Do not copy a competitor's label or potency claims. A product that looks similar on the shelf may not meet the same limits.

Step 5: Apply for your OCM license

Apply through OCM for the role you chose and pay the application fee. A manufacturer application is $250, a wholesaler application is $250, and each retail location carries a $250 fee. The initial fees are $1,000 for a manufacturer and $10,000 for a wholesaler. Renewal fees match the initial fees for those roles, at $1,000 and $10,000. Retail renewals are listed per location, so budget for every site you plan to open. A first-time wholesaler should note that the $10,000 initial and renewal fees are the largest line items in this framework, and they come due before your first sale.

Step 6: Get the food and manufacturing licenses that apply

Making a drink or an edible is also food production, so expect food, beverage or manufacturing requirements on top of the OCM license. Minnesota issues licenses agency by agency, by occupation and activity. The Minnesota Department of Agriculture (MDA) and the Minnesota Department of Health (MDH) are the agencies that most often regulate food, and the Department of Labor and Industry (DLI) handles some other trades. Search License Minnesota by topic or by agency to see what applies. Ask the agency that covers your kitchen or co-packer before you sign a lease or a production contract.

Step 7: Register locally for retail sales

An LPHE retailer must also register with its city, town or county under Minn. Stat. 342.22. The local fee is capped at half the license fee, so the cap for an LPHE retailer is $125. Duluth lists $125, but your local government sets its own amount up to the cap, so check it before you budget.

Local government also controls zoning and its own licenses. Minneapolis and St. Paul license by category, and neither issues a general business license. A retail address may therefore need a category-specific city license in addition to the state registration. Minnesota has about 853 cities and about 1,780 townships, and a township can apply different rules from the city next door. Call the planning or licensing office for your exact address before you sign a lease.

Step 8: Plan on-site consumption carefully

If customers will consume products at your location, you need an on-sale liquor license or equivalent liability insurance. The Alcohol and Gambling Enforcement Division (AGED) is the agency to ask about liquor licensing. Do not assume an insurance policy satisfies the rule until you have written confirmation for your specific setup. Ask two or three insurers for quotes, and ask each to state in writing whether its coverage meets the requirement.

Step 9: Track the federal hemp deadline

A federal limit on hemp products is scheduled to take effect November 12, 2026, unless Congress acts. OCM has said that state law is unchanged. Treat this as a live risk. Check mn.gov/ocm for updates as of 2026, and ask your attorney how a federal change would affect your product lines before you place a large inventory order. Keep a fallback plan for your product mix.

Expected results

A careful operator can reasonably expect the following. None of it is a promise of revenue.

• A legal path to selling to adults 21 and older once each license, state registration and local approval is in place. Processing times vary, and this guide does not publish them, so ask each agency for its current turnaround before you set a launch date.
• Sales that depend on your location, pricing, product quality and local demand. Nothing in this guide forecasts how much you will sell.
• Ongoing compliance costs rather than a one-time expense. Renewals, annual filings, tax returns and local renewals keep recurring.
• No room for health claims. FDA has not approved these products for any medical use, so describe products by ingredient, serving and format, never as treating, curing or preventing any condition.

Common mistakes to avoid

• Treating a Secretary of State filing or a Department of Revenue tax ID as a license. Neither one lets you sell THC products.
• Choosing an LLC name that includes corporation or incorporated, or one that fails the distinguishability check and stalls your filing.
• Using a PO box as your registered office. Minnesota requires a street address.
• Missing the December 31 Annual Renewal. The fee is $0, but a missed filing leads to termination or revocation, and reinstatement costs $65 by mail or $85 online or in person.
• Skipping the newspaper publication for a Certificate of Assumed Name, which can make the certificate invalid.
• Assuming the local registration fee equals the state fee. The local cap is half the license fee, and your city sets the actual amount.
• Signing a lease before you confirm zoning and city category licenses.
• Selling to anyone under 21, or handing off product without checking age.
• Putting health claims on labels, social posts or your website.

Practical tips

• Get written answers from OCM on your product type before design work starts. A label redesign costs far more than a phone call.
• Use the Minnesota Small Business Development Center Network, administered by the Department of Employment and Economic Development, at mn.gov/deed/business/help/sbdc. Its advisers can review your plan before you file.
• Build one compliance calendar listing the December 31 Annual Renewal, sales tax filings, OCM renewals, local renewals and the assumed name renewal.
• Keep product records from day one, including formulas, any THC testing results your rules require, and records of age checks at sale.
• Check your name in the Secretary of State business search, then reserve it if you need time to finish your paperwork.

Get professional help

A THC beverage or edible business sits where food rules, tax law, alcohol rules and federal hemp law meet. Talk with a Minnesota attorney who handles cannabis or hemp matters before you sign a supply agreement or a lease. Talk with a CPA before you choose an entity or a tax election. For a first-time operator, both conversations are worth the cost.

This article is informational, not legal or tax advice. Verify current fees, deadlines and rules at the agency pages linked above before you act.