How to Start a Limousine Business in Minnesota: MnDOT Permit and the December 2025 Rule Changes

If you plan to run a limousine service in Minnesota, the hardest part of the paperwork is not one license. Minnesota issues no general statewide business license, and filing an LLC or corporation with the Secretary of State is a filing, not a license. The operating authority you actually need is a MnDOT limousine service permit, a decal for every vehicle, and insurance filed in the correct form. The entity, tax, and city steps sit around those. This guide puts them in the order that works, lists the fees on the current agency schedules, and explains what changed when Minn. Rules chapter 8880 took effect on December 22, 2025.

Disclaimer: This article is informational content, not legal or tax advice. Limousine rules depend on your vehicles, your service area, and how you structure the business. Talk with a Minnesota attorney and a CPA before you sign vehicle leases, hire drivers, or choose an entity type.

What You Need Before You Start

Gather these items before you file anything. Most delays come from one missing item on this list.

• A business name that is available with the Secretary of State and that includes "limited liability company" or "LLC" (or a corporation name if you form one)
• A Minnesota street address for your registered office. A PO box by itself is not accepted.
• A federal Employer Identification Number (EIN) from the IRS
• A USDOT number
• Commercial auto liability insurance that meets the Form E minimum of $1,500,000
• Titles and registrations for each vehicle, plus LM plates from the Driver and Vehicle Services (DVS) division
• Documentation of each vehicle's value under MnDOT's current definition
• A written plan for daily vehicle inspection records
• A budget that covers the fees in the table below

Minnesota Fees at a Glance

Each figure below comes from the agency schedule listed. Agencies revise fees, so confirm each one on the agency page before you pay.

Item	Fee	Agency
LLC Articles of Organization	$155 online or in person; $135 by mail	Secretary of State
Name reservation (optional)	$55 for 12 months, renewable	Secretary of State
Certificate of Assumed Name (DBA)	$50 online or in person; $30 by mail, plus newspaper publication	Secretary of State
LLC Annual Renewal	$0, due December 31 each year	Secretary of State
LLC reinstatement after a missed renewal	$65 by mail; $85 online or in person	Secretary of State
MnDOT limousine service permit	$150 (Minn. Stat. 221.84)	MnDOT
Vehicle decal	$80 per vehicle per year	MnDOT
State sales tax	6.875%, plus any local taxes	Department of Revenue
Form E liability insurance	Premium set by your insurer; minimum coverage $1,500,000	Your insurer files with MnDOT
USDOT number	Free for intrastate operations; interstate operations carry a federal fee	FMCSA (confirm the current fee there)
LM plates	Confirm with DVS	DVS
City license or zoning approval	Confirm with your city	City

Step 1: Form the Entity With the Secretary of State

Most limousine operators form an LLC. The formation document is Articles of Organization under Minnesota Statutes Chapter 322C. File online at the Business Filings Online portal (MBLS), which costs $155 and is expedited. A mail filing costs $135 and is not expedited. The Secretary of State does not publish a guaranteed turnaround in business days, so plan for variation before you schedule your launch.

Your name must contain "limited liability company" or "LLC" and cannot contain "corporation" or "incorporated" or their abbreviations. It must also be distinguishable from every domestic LLC, LLP, corporation, and limited partnership on file in Minnesota (Minn. Stat. 322C.0108). Search the business search before you commit to a name. If you want to hold a name while you finish the paperwork, a $55 name reservation lasts 12 months.

You must have a registered office with a Minnesota street address. A registered agent is optional for a Minnesota LLC. The LLC does not need to publish a notice. Note the annual deadline now, because it is the one most often missed. The Annual Renewal costs $0 and is due December 31 every year. If you miss it, the LLC is terminated without further notice under Minn. Stat. 322C.0705, and reinstatement costs $65 by mail or $85 online or in person on the current Secretary of State fee schedule.

If you will operate under a name other than the LLC's name, file a Certificate of Assumed Name for $50 online or in person, or $30 by mail. The certificate 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 it invalid. Renewal is annual and free.

Step 2: Register for Taxes With the Department of Revenue

Register for a Minnesota Tax ID and a sales and use tax account through the Department of Revenue's new business registration before you make your first taxable sale. The Revenue registration is not a license, but you cannot legally collect tax without it. The state sales tax rate is 6.875 percent, and local taxes apply on top.

Ask Revenue how it treats your specific charges. Gratuities, airport fees, and add-on services may be handled differently, and the rules are not something this article can settle for you. A CPA should confirm this before your first invoice goes out.

Your tax treatment also depends on how the entity is taxed federally. An LLC taxed as a partnership or disregarded entity passes income through to its owners, who pay Minnesota individual income tax at graduated rates from 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. For 2026, that minimum fee is $0 below $1,280,000 of Minnesota property, payroll, and sales, and rises in brackets from there.

Step 3: Get a USDOT Number

Apply for a USDOT number through the Federal Motor Carrier Safety Administration. Intrastate operations, meaning rides that start and end in Minnesota, get the number free. Interstate operations carry a federal fee. Confirm which category your business falls into before you apply, because a bad guess costs you time.

The USDOT number is no longer just a formality. Under the December 2025 rules, you must have one before your permit renews. Get it in place early, and keep the number on the paperwork you file with MnDOT.

Step 4: Buy Insurance and Make Sure the Form E Is Filed

MnDOT requires liability insurance on a Form E with a minimum of $1,500,000. The key detail is who files it. Your insurer must file the Form E directly with MnDOT. You cannot file it yourself by handing a certificate to the state, so ask your agent in writing whether the Form E will be filed, and get the filing date.

Premiums vary by vehicle, driver history, and service area, so get quotes from agents who write limousine and passenger transportation coverage. Do not sign a policy that is not written for passenger transportation. A general commercial auto policy may not meet the Form E requirement.

Step 5: Title, Register, and Plate Each Vehicle

Each vehicle you plan to run needs a title and registration in the name of the business or the owner, depending on your structure. Apply through DVS for LM plates. Do this before you apply for the decal, because the rules require the decal to be displayed on a vehicle that is properly registered. Confirm the DVS steps and any fees on the DVS website, since those are not covered by the schedules in this article.

Document each vehicle's value. The December 2025 rules revised the definition of vehicle value, so use the current MnDOT definition rather than an older one you may find online.

Step 6: Apply for the MnDOT Limousine Service Permit

The MnDOT limousine service permit costs $150 under Minn. Stat. 221.84. Each vehicle you operate also needs a decal, which costs $80 per vehicle per year. Permits now renew annually. Apply through MnDOT's motor carrier pages on the MnDOT website, and send your complete package, including your Form E confirmation, USDOT number, and vehicle list.

Under the rules, you may not advertise or operate before you hold the permit and have a decal displayed on each vehicle. This applies even if you have already bought vehicles, a website, and a booking system. Hold off on marketing until both are in place.

MnDOT now lists initial operator education as optional. That is a change from the earlier process. Training your drivers is still good practice for safety and for dealing with passengers, even though the state no longer requires it at the permit stage.

Step 7: Check Local Licensing and Zoning

Minnesota has no general state business license. Licenses are issued by trade or activity, and local governments add their own rules. Minnesota has about 853 cities, and each one sets its own approach. Minneapolis and Saint Paul license by category and neither issues a general business license. Your city may require a license for vehicles or for a business operating from a home or commercial site, and it may restrict where you park or garage vehicles. Ask your city clerk and zoning office for the requirements for your specific address before you sign a lease.

The state's central lookup, License Minnesota, lets you browse required licenses by topic or agency. Use it to check whether any other permit applies to your operation, but do not assume a search result covers every local rule.

Step 8: Set Up Records and Operations

Set up records before your first ride. The December 2025 rules require you to keep daily vehicle inspection records. Use a form or app that captures the date, the vehicle, the driver, and the inspection results, and keep the records in a place you can produce them from quickly. MnDOT audits permit holders at least once every three years, so store records for the full period between audits.

Name your business carefully. Under the rules, only a permit holder may use "limousine" in its name. Do not put the word in your business name, website, or vehicle signage until your permit is issued.

What Changed in December 2025

The rule changes under Minn. Rules chapter 8880 took effect on December 22, 2025. If you read older guides, they will not reflect these changes. The table below summarizes what each one means for you.

Change	What it means for your business
USDOT number required before renewal	Get your number before your first renewal date, and keep it current.
Permits renew annually	Put the renewal date on your calendar, and budget the $150 permit fee and the $80 per-vehicle decal each year.
Audits at least every three years	Keep your insurance, vehicle, driver, and inspection records ready for review at all times.
Daily vehicle inspection records kept	Log an inspection for each vehicle every day it runs.
Revised vehicle value definition	Confirm the current definition with MnDOT before you buy or document a vehicle.
Temporary permit process	Ask MnDOT how it works and whether it fits your start date before you sign vehicle leases.
Formal variance process	If a rule does not fit your operation, request relief through the formal process rather than working around the rule.
Only a permit holder may use "limousine" in its name	Hold the permit before you use the word in your name or marketing.
Initial operator education now optional	The state no longer requires it, but documented driver training still helps with audits and insurance.
No advertising or operating before the permit and displayed decal	Your first ad, booking, or ride must wait until both are in place.

Common Mistakes to Avoid

• Advertising before the permit. Websites, listings, and social posts that promote rides before you hold the permit and a displayed decal violate the rules.
• Assuming a general commercial auto policy is enough. The Form E must be filed by your insurer, and the minimum is $1,500,000.
• Treating Secretary of State filing as a license. Your LLC filing makes the entity legal, but it does not authorize you to operate a limousine.
• Missing the December 31 LLC renewal. The renewal costs $0, but a missed deadline can terminate the entity.
• Using "limousine" in your name too early. Only a permit holder may use the word.
• Skipping the Revenue registration. Make no taxable sale until your Minnesota Tax ID and sales tax account are in place.
• Assuming one city's rules apply statewide. Minneapolis, Saint Paul, and the other cities set their own requirements.
• Waiting to start the daily inspection log. The records are required from the start, and you cannot rebuild them after an audit notice arrives.

What to Expect as Results

Once your entity, tax registration, insurance, plates, USDOT number, permit, and decals are in place, you may be able to begin advertising and taking bookings. That is the point where the business can start to generate revenue. Nothing in this guide guarantees a particular approval date or a particular level of business. The Secretary of State does not publish a guaranteed turnaround, and the timing of insurer filings, DVS plates, and MnDOT review depends on how complete your package is. Build slack into your launch date, and do not sign long vehicle leases or hire a full driver team until your permit is issued.

Resources

• Minnesota Secretary of State: entity formation, name reservation, and assumed names
• Business Filings Online (MBLS): search the business records and file online
• Minnesota Department of Revenue: tax registration and sales tax questions
• Minnesota Department of Transportation (MnDOT): limousine permit, decal, and rule questions
• License Minnesota: a central lookup for licenses by topic or agency
• Minnesota Small Business Development Center Network: free and low-cost planning help

Disclaimer: This article is informational content, not legal or tax advice. Rules, fees, and agency processes change. Confirm every figure on the agency page before you file, and consult a qualified Minnesota attorney and CPA for your specific structure, vehicles, and service area.