How to Start a Restaurant in Minnesota: MDH License Fees, Certified Manager and Plan Review

If you are researching how to start a restaurant business in Minnesota, the first thing to understand is that no single state permit opens your doors. You form a business entity with the Secretary of State, register with the Department of Revenue, get your food license from the Minnesota Department of Health (MDH) or from your city or county, complete plan review before you build, and put a certified food protection manager in charge. If you serve alcohol, you also need a separate liquor license. This guide puts those steps in the order that saves the most money and rework.

This is informational content, not legal or tax advice. Fees and rules change, so confirm every figure below with the agency named before you commit money. For a lease, a loan, or an entity structure, talk to a qualified attorney or CPA.

What You Are Actually Licensing in Minnesota

Minnesota issues no general statewide business license. Licenses and permits are issued by trade or activity. For a restaurant, that means three layers:

• Your entity filing with the Minnesota Secretary of State. An LLC or corporation filing is a filing, not a license.
• Tax registration with the Minnesota Department of Revenue. A Minnesota Tax ID and a Sales and Use Tax account are not licenses either, but you must have them before making taxable sales.
• Operating licenses and approvals for food service, which come from MDH or a delegated city or county, plus local zoning and city licenses by category, plus liquor if you sell it.

The state's central lookup, License Minnesota (mn.gov/elicense), lets you browse required licenses by topic, agency, or an A to Z index. Use it as a checklist, then confirm with each agency.

Materials and Information You Need Before You Start

Gather these before you file anything. Most delays happen when an operator starts an application without the layout, equipment list, or menu the reviewer needs.

• A business name that you have checked against the Secretary of State business search
• A Minnesota street address for the registered office (a PO box alone is not accepted)
• A draft menu, with every item and how it is prepared, stored, and served
• A scaled floor plan showing the kitchen, prep areas, dish washing, handwashing sinks, restrooms, storage, and dining room
• An equipment list with make, model, and specification sheets for cooking, refrigeration, and dishwashing equipment
• Finish schedules for floors, walls, ceilings, and coving in food areas
• Your federal Employer Identification Number from the IRS
• The name and contact details of the person who will hold the certified food protection manager credential
• A written budget that includes every fee in this guide, plus construction, equipment, and working capital

Step-by-Step: How to Open a Restaurant in Minnesota

Step 1: Choose your entity and file Articles of Organization

Most independent restaurants choose a limited liability company (LLC). The LLC filing is Articles of Organization under Minnesota Statutes, Chapter 322C, and it costs $155 online or in person, which is the expedited option, or $135 by mail, which is not expedited. You file through Business Filings Online (the Minnesota Business and Lien System) at https://mblsportal.sos.mn.gov/Business/Search. The Secretary of State does not publish a guaranteed turnaround in business days, so plan for the timing to vary.

Your LLC name must include the words "limited liability company" or the abbreviation "LLC." It may not contain "corporation" or "incorporated" or their abbreviations, and it must be distinguishable on state records from every domestic LLC, LLP, corporation, and limited partnership on file, authorized, registered, or reserved in Minnesota. If you need time to open, a name reservation costs $55 and lasts 12 months, renewable for additional 12-month periods.

Minnesota requires a registered office, not a registered agent. The registered office must be a Minnesota street address, and it does not need to match your restaurant location. Naming an agent is optional for a domestic LLC.

Forming an LLC does not require publication. Your Annual Renewal is due every December 31, and it costs $0 if the entity is active and in good standing. Missing that date can terminate the LLC, so put it on your calendar on day one.

Step 2: File a certificate of assumed name if you will trade under another name

If your restaurant will operate under a name other than the LLC's legal name, you need a Certificate of Assumed Name (a DBA) under Minnesota Statutes, Chapter 333. It is filed only with the Secretary of State, Business Services. The fee is $50 online or in person, or $30 by mail.

This step has a publication requirement that many first-time owners miss. After filing, the certificate must be published for two consecutive issues in the legal notices section of a qualified legal newspaper in the county of your principal place of business. Failure to publish may render the certificate invalid, so budget for the newspaper charge and confirm the qualified paper for your county before you rely on the name. The certificate must be renewed annually at no charge. Forms and details are at https://www.sos.mn.gov/business-liens/business-forms-fees/assumed-namedba/.

Step 3: Register with the Department of Revenue

Register at the Department of Revenue for a Minnesota Tax ID and a Sales and Use Tax account before you make your first taxable sale. The state sales tax rate is 6.875%, and local taxes are added on top, so your point-of-sale system must be set up for the combined rate at your address.

Your entity's income tax treatment also matters. An LLC taxed as a partnership or disregarded entity passes income through to its owners, who pay the individual income tax at graduated rates of 5.35%, 6.80%, 7.85%, and 9.85%. An LLC that files federally as a C corporation pays the 9.8% corporation franchise tax, plus the Minnesota minimum fee under Minn. Stat. 290.0922 where it applies. A CPA should model this before you choose a structure.

Start the registration at https://www.mndor.state.mn.us/tp/eservices/_/?link=NewBusinessReg, and see the general agency site at https://www.revenue.state.mn.us/.

Step 4: Confirm who licenses you and whether zoning allows a restaurant

Minnesota has 87 counties, about 853 cities, and about 1,780 townships. Your address determines who controls zoning and who may license your food operation. MDH licenses restaurants and bars, but a city or county can be the licensor instead. Before you sign a lease, ask the city or county planning office two questions in writing: is restaurant use permitted at this address under current zoning, and which agency issues the food license for this location?

If you are in an unincorporated township, the township or county may control zoning and the local permit path. Do not assume that a commercial space is zoned for food service because it has a kitchen. A conditional use permit can take months, so ask this before you sign.

Step 5: Complete plan review before you build or remodel

Plan review is required for new builds and remodels of food establishments. Submit your floor plan, equipment list, finish schedule, and menu before construction starts. A reviewer checks layout, equipment, sinks, storage, and food flow against the rules, and you fix problems on paper, where a change costs little, instead of with a jackhammer.

The plan review fees are:

Project type	Category 1	Category 2	Category 3
New build	$550	$750	$800
Remodel	$450	$500	$550

Check with MDH, or with the city or county if it is your licensor, to confirm which category applies to your concept and to confirm current plan review amounts for 2026. Ask whether a menu change later will trigger a new review.

Step 6: Put a certified food protection manager in place

Minnesota requires a certified food protection manager under Minn. Rules 4626.0033. The certificate is valid for 3 years. The rule includes exemptions for low-risk and limited-menu operations, so ask MDH whether your concept qualifies before you assume you can skip the credential.

If your manager leaves, a new certified manager must be in place within 60 days after the last one leaves. Many operators name two people for this credential so that a resignation does not put them out of compliance. Confirm which courses and exams are approved for Minnesota with MDH, because a course that is not on the approved list will not satisfy the requirement.

Step 7: Apply for your food license and pay the fees

Apply for your food license with the licensing agency for your location, whether MDH, a delegated city, or a delegated county. The figures below took effect on July 1, 2025. Confirm current amounts with MDH as of 2026 before you budget, and confirm any separate city or county fee if a local government licenses you.

Fee component	Category 1	Category 2	Category 3
Base fee	$300	$300	$300
Statewide hospitality fee	$50	$50	$50
Technology fee	$5	$5	$5
Category fee	$185	$430	$670
Total license cost (before any local add-on)	$540	$785	$1,025

The category depends on the type of food operation you run, so check with MDH which category fits your concept before you build your budget. Use the total column only after you have confirmed the category.

Step 8: Get your Certificate of Occupancy and pass inspection

Before you open, expect to need a Certificate of Occupancy from your city or building official, and expect a pre-opening food inspection. Schedule both with the local building and licensing offices early, because each depends on your construction being finished and on your certified manager being in place. Ask the inspector to walk the space with your approved plan in hand, and fix any differences before the visit.

Step 9: Check Met Council sewer availability charges in the metro

If your restaurant is in the seven-county metro area, expect Metropolitan Council SAC charges, which are sewer availability charges tied to the wastewater system and the size of your use. The charge amount is not part of this guide's verified figures, so check with the Metropolitan Council and your city before you sign a lease or a construction contract. A high SAC bill can change whether a space pencils out.

Step 10: Apply for a liquor license if you will sell alcohol

Alcohol service requires a separate liquor license, usually issued by the city. It is not included in the MDH food license, and cities set their own timing and requirements. Start this application early, because a city council may need to act on it. Confirm the process with your city's licensing office, and do not promise a bar menu or opening date to investors until the liquor license is approved.

How Minneapolis and St. Paul Handle It

Minneapolis and St. Paul each license businesses by category, and neither issues a general business license. A restaurant in either city will deal with the city's own food and liquor licensing, zoning review, and inspection process. The city fees are added to the state and MDH figures in your budget, so do not assume the table above is your total cost in those cities. Confirm each city's category, fee, and application steps with the city's licensing office before you sign a lease.

Tips That Save Money and Time

• Get the zoning answer in writing before you sign. A verbal "should be fine" from a landlord does not satisfy the planning office.
• Submit plan review before you order equipment. Swapping a line you have not bought yet costs far less than moving a hood or a sink that is already installed.
• Schedule the certified manager course early. You need the credential in place for the license, and it is easy to forget while you focus on construction.
• Keep one folder for every agency. The Secretary of State, Revenue, MDH, the city, and the county will each ask for the same facts. Consistency across filings prevents rework.
• Use free help. The Minnesota Small Business Development Center Network, administered by the Department of Employment and Economic Development, offers business advising at https://mn.gov/deed/business/help/sbdc/. The SBA's Minnesota district page is at https://www.sba.gov/district/minnesota.

Common Mistakes to Avoid

• Signing a lease before confirming zoning and the licensing agency. This is the most expensive mistake in this guide because it can kill the project after you have paid rent.
• Assuming the state license covers everything. A city may charge its own license fee, require its own inspection, or handle the food license entirely.
• Building before plan review. Changes made after construction are the most costly rework in food service.
• Missing the December 31 Annual Renewal. The LLC renewal costs $0, but a missed date can terminate the entity.
• Skipping the DBA publication. If you file a certificate of assumed name without publishing it in a qualified newspaper for two successive issues, the certificate may be invalid.
• Letting the certified manager credential lapse. The certificate is valid for 3 years, and a replacement manager must be in place within 60 days after the last one leaves.
• Choosing a name that is not distinguishable. If your LLC name is too close to an existing Minnesota entity, the filing can be rejected. Search before you pay for branding.

What to Expect: Realistic Outcomes

Every restaurant takes a different path, and no guide can promise a timeline or a sales figure. The steps above are designed to reduce avoidable delays and surprise costs. Many operators find that the biggest variable is the plan review and construction phase, not the paperwork. Filing your entity and tax registration is usually the simplest part, while zoning, plan review, and construction can take the most time. A clear budget that includes every fee in this guide can help you avoid running short before opening.

Nothing here guarantees approval, a particular opening date, or a particular outcome. Results depend on your location, your concept, your agency's current requirements, and the quality of your application.

Where to Get Help and Verify Figures

• Minnesota Secretary of State: https://www.sos.mn.gov/ for entity filings, name searches, and assumed names.
• Minnesota Department of Revenue: https://www.revenue.state.mn.us/ for tax registration and rates.
• Minnesota Department of Health: confirm food license categories, plan review fees, and certified manager rules directly with MDH, or with your city or county if it is the licensor.
• License Minnesota: mn.gov/elicense for a topic-based license lookup.
• Your city or county planning office: zoning, conditional use permits, and certificate of occupancy questions.
• Attorney and CPA: for entity structure, lease terms, and tax planning, which depend on facts this guide cannot know.

Disclaimer

This article is informational content about starting a restaurant in Minnesota. It is not legal or tax advice. Fees, categories, and requirements can change, and the figures shown reflect the information available when this guide was prepared. Confirm every amount and requirement with the agency that administers it before you file, pay, or sign a contract, and consult a qualified attorney or CPA for your specific situation.