Complete guide to permits and licenses required to start a catering in St Paul, MN. Fees, renewal cycles, and agency contacts.
Required for all businesses; catering classified under "food service
No general business license required at county level; cities handle licensing
Strict limits on food prep from home; no commercial kitchen allowed in residence
Must comply with C1/C2/C3 zoning districts for food service; Minneapolis Code of Ordinances Sec. 535
Required for any structural changes to commercial kitchen
Separate license required for each fixed location; mobile units $450
Required if using a trade name different from LLC's legal name. Renewal required every 10 years.
Mandatory for all LLC formation. Annual renewal not required but must file Annual Renewal ($0 fee) by Dec 31.
Required for sales tax permit (6.875% state rate + local). Catering typically taxable.
Issued by local city/county health department following state MDH standards. Requires plan review for new operations.
Specific to mobile catering. Requires commissary agreement and vehicle inspection.
Person-in-charge must be CFPM. Certification valid 5 years. Required by MN Food Code.
State-approved program required for food handlers. Orientation includes food safety basics.
Quarterly wage reporting required. New employer rate 2024: 9.0% on first $40,000 per employee.
Catering businesses selling prepared food are required to collect and remit sales tax. Prepared food is taxable at the general sales tax rate (6.875% statewide as of 2024). Local option taxes may apply in certain jurisdictions.
Required for all employers in Minnesota. Employers must withhold state income tax from employee wages and remit it to the state. Registration is done through the Minnesota Business One Stop portal.
Employers must register with the Minnesota Department of Labor and Industry and pay quarterly unemployment insurance taxes. New employers pay a standard rate of 1.2% on the first $7,000 of wages per employee annually until experience-rated.
Required for kitchens with Type I hoods per IFC 2018 standards
Required when changing from non-food use to catering facility
Required for all new commercial installations
Required for all food service including catering prep locations
All food handlers must complete state-approved training
Mandatory for all employers with one or more employees in Minnesota, including part-time and seasonal workers. Sole proprietors are not required to cover themselves unless they elect coverage. Catering businesses typically fall under NAICS code 722310 (Food Service Contractors), risk class code 8808, with a base rate around $1.85 per $100 of payroll (2023 rate).
While not mandated by Minnesota state law for all businesses, general liability insurance is effectively required by local jurisdictions, event venues, and health departments when serving food at public events. Coverage typically includes bodily injury, property damage, and premises liability. Recommended minimum: $1 million per occurrence.
Required for all vehicles registered to the LLC. Minimum liability coverage: $30,000 bodily injury per person, $60,000 per accident, $10,000 property damage (Minn. Stat. § 170.54). Applies to catering trucks, vans, or delivery vehicles used in operations.
Required if the catering business holds a liquor license or provides alcohol service. Minnesota requires businesses selling or serving alcohol to carry liquor liability insurance as part of risk management. Coverage typically bundled with general liability. AGED enforces compliance through licensing and inspections.
A surety bond (typically $1,000–$10,000 depending on license type) is required when applying for a liquor license in Minnesota. The bond guarantees compliance with state alcohol laws. Most common for caterers serving alcohol under a Temporary Caterer’s License or Special Use Permit.
Not legally mandated by federal or state law, but strongly recommended due to high risk of foodborne illness claims. Covered under general liability or as an endorsement. FDA enforces food safety under the Food Safety Modernization Act (FSMA), but does not require insurance.
All Minnesota LLCs doing business in the state must file Form M2 for franchise tax annually, even if no tax is owed. This is not a privilege tax but a mandatory filing obligation. Applies regardless of business type.
Many Minnesota cities require a local business license or privilege tax for catering businesses. Examples include Minneapolis, St. Paul, Duluth, and Rochester. Fees and requirements vary. Check with local city clerk or finance department. Source: Minnesota.gov Business Licensing Tool.
Catering businesses must collect local option sales taxes in addition to state sales tax in certain areas. For example, Hennepin County adds 0.5%–1.0% for transit or cultural initiatives. Filings are combined with state sales tax return (Form ST3).
At least one employee must be certified as a Food Manager. Training available online or in-person. Required by Minnesota Statutes Chapter 145A.
Required for catering at weddings, festivals, or pop-ups. May require inspection of equipment and food sources.
An Employer Identification Number (EIN) is a unique tax identification number assigned by the IRS to businesses operating in the United States. It’s required for most businesses, even if you don’t have employees, and is used for banking, tax filing, and other official purposes.
FTC compliance for a catering business primarily involves adhering to truth-in-advertising standards and protecting consumer rights. This means ensuring your marketing materials are accurate and not misleading, and handling customer complaints fairly.
LLCs have specific federal tax obligations, including income tax, self-employment tax, and potentially employment taxes if you have employees. The IRS requires proper filing and payment of these taxes, and fees can vary based on your income and deductions.
The Corporate Transparency Act requires many companies, including LLCs, to report beneficial ownership information to FinCEN. This helps prevent financial crimes and requires an Annual BOI Report with no associated fee.
Many of the required permits, such as FTC compliance and EIN registration, do not have a traditional renewal process. Instead, they require ongoing compliance or one-time filings, while others like tax filings are annual obligations.
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