Child Care / Day Care Permits & Licenses in St Paul, MN

Required for all employers in Minnesota to withhold state income tax from employee wages. Registration is done through the Minnesota Business One Stop portal.

All employers in Minnesota must register for unemployment insurance tax unless specifically exempt (e.g., certain religious organizations). New employers pay a standard rate for the first few years.

Most LLCs are pass-through entities and not subject to franchise tax. However, if the LLC elects corporate taxation, it may be liable for Minnesota franchise tax. The tax is based on net income apportioned to Minnesota.

LLCs are generally pass-through entities. Owners report income on personal tax returns. However, the LLC may need to file Form M1 or M1A if it has multiple members or elects corporate treatment. Single-member LLCs typically report income on Schedule C of the owner’s personal return.

Many Minnesota cities (e.g., Minneapolis, Saint Paul, Duluth) require a local business license or privilege tax. Fees and requirements vary. Check with city clerk or finance department. Example: Minneapolis Business Tax Registration at https://www.minneapolismn.gov/business/business-license/

Even single-member LLCs with no employees may need an EIN if they file excise or employment tax returns. Obtained via IRS Form SS-4 or online.

FUTA tax is 6% on first $7,000 of each employee’s wages. Employers may receive a credit of up to 5.4% for paying state unemployment taxes, reducing effective rate to 0.6%.

Single-member LLCs report income on owner’s Form 1040 (Schedule C). Multi-member LLCs file Form 1065 (partnership return). Due dates depend on entity structure.

Requires submission of floor plans, safety inspections, staff qualifications, background checks, and ongoing compliance. Renewal every 2–3 years.

Most small child care LLCs do not pay corporate income tax. Instead, profits pass through to members, who report on personal returns. Minnesota does not impose a franchise tax on LLCs unless they are taxed as corporations.

Child care facilities require a specific license endorsement. See Minneapolis Code of Ordinances Sec. 347.20.

Required for family, group, or center-based child care. Must comply with MN Rules 9502.0440 zoning standards.

Child care is allowed in certain zones with conditional use permit (CUP). Minneapolis Zoning Code Chapter 520.

Required for renovations to meet child care building codes (egress, accessibility). Minneapolis Code Sec. 525.

Required if using a trade name different from LLC's legal name on file with SOS

Applies to all LLCs; child care specific requirements handled separately

Online confirmation of continued existence; applies to all LLCs

License type depends on setting/size: Family (in-home), Group Family, Child Care Center. Exemptions for relatives/school programs listed in Minn. Stat. §245A.14

4-hour mandatory training on regulations, policies, first aid/CPR overview

Must cover infants, children, adults; required prior to caring for children

Criminal, child abuse/neglect checks via NETStudy system; disqualifying offenses listed in Minn. Stat. §245C.15

Required for LLCs with payroll; quarterly reporting thereafter

Child care services generally exempt; applies if vending food/supplies

Quarterly/annual filings; combines with UI for new employers

Child care businesses typically do not charge sales tax on child care services, which are exempt. However, if the business sells items such as clothing, food, or school supplies to parents, a sales tax permit may be required. See MN Statute § 297A.66 for exemptions.

Must meet MN State Fire Code and NFPA 101 for assembly occupancies. Minneapolis Fire Code Chapter 4.

Required if providing meals/snacks. Complies with MN Food Code. Minneapolis Code Sec. 251.40.

Verifies compliance with building, fire, zoning codes. Required for new or renovated spaces.

Monitored systems must register annually. Minneapolis Fire Code Sec. 901.

Complies with Minneapolis Zoning Code Chapter 527 sign regulations.

Specific standards for family day care homes. Ramsey County Zoning Ordinance Sec. 5.42.

Minnesota law requires *all* employers with at least one employee to carry workers’ comp or be self‑insured. Child‑care providers are no exception.

Minnesota child‑care licensing rules require minimum limits of $100,000 per occurrence and $300,000 aggregate for center‑based programs; family‑home providers must carry at least $50,000 per occurrence and $100,000 aggregate.

Minnesota law does not mandate professional liability insurance for child‑care providers, but many centers purchase it to protect against claims of negligence or abuse.

Minnesota requires a $5,000 surety bond for family‑home child‑care operations to protect against claims of abuse, neglect, or financial loss.

Electronic filing is required for most employers.

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Includes Minimum Wage, Workers’ Compensation, Unemployment Insurance, and other required notices.

Includes FLSA, OSHA, EEOC, Family and Medical Leave Act, etc.

Minnesota minimum liability limits are $30,000 per person, $60,000 per accident for bodily injury, and $10,000 for property damage.

Only relevant if the child‑care operation manufactures or sells physical products; otherwise not applicable.

Child‑care facilities in Minnesota are prohibited from serving alcoholic beverages to children; therefore liquor liability insurance is not required.

Minnesota law requires employers to carry both Workers’ Compensation and Employer’s Liability coverage. The liability portion protects against employee lawsuits alleging negligence.

Required for all LLCs for tax administration. Even single-member LLCs without employees may need an EIN if they operate under a business name. Child care businesses typically need one due to employee hiring.

LLCs are pass-through entities by default; profits are reported on owners' personal tax returns. Self-employment tax applies. Child care providers must report all income, including payments from government programs like Child Care Assistance Program (CCAP).

Applies to all employers with employees. Child care providers must maintain a safe workplace, post OSHA poster (Form 2203), report work-related fatalities within 8 hours and hospitalizations within 24 hours. Specific hazards include chemical safety (cleaning supplies), emergency preparedness, and injury prevention.

All child care facilities are public accommodations under ADA Title III. Must provide equal opportunity for children with disabilities unless it causes "undue burden." Includes physical access (ramps, restrooms), policy modifications, and communication access. Applies even if facility is in a private home.

Required if child care facility is in a pre-1978 building and staff perform renovations (e.g., repainting walls). Firms must be EPA-certified, and workers trained. Applies to child care providers doing their own renovations.

Child care businesses must comply with minimum wage, overtime (1.5x regular rate after 40 hours/week), and recordkeeping rules. Some exemptions may apply, but most child care workers are non-exempt. Applies regardless of number of employees.

Requires eligible employees to receive up to 12 weeks of unpaid, job-protected leave for qualifying reasons (e.g., birth of child, serious health condition). Child care providers meeting employee threshold must post notice and administer leave properly.

All employers, including child care LLCs, must complete Form I-9 for each employee to verify identity and work authorization. E-Verify is not federally required unless state law or federal contract applies.

Child care providers must avoid deceptive advertising (e.g., false claims about curriculum, staff qualifications, or safety). Applies to websites, brochures, and social media. Includes compliance with the FTC’s Endorsement Guides and COPPA if collecting data from children under 13.

While not mandatory, many child care providers participate to receive reimbursements for meals. Requires compliance with meal pattern standards, recordkeeping, and periodic reviews. Administered federally by USDA, implemented through state agencies.

License must be legible and current; replace immediately upon renewal.

Report includes enrollment numbers, staff ratios, and any incidents.

There is no federal license required to operate a child care or day care business. Licensing is handled at the state level (Minnesota Department of Human Services). Federal regulations focus on tax, labor, safety, and anti-discrimination compliance.

Required if receiving federal funding for child care services. Includes meal pattern compliance, background checks, staff qualifications, and recordkeeping. Administered by HHS through state agencies like Minnesota DHS.

File online via the Secretary of State’s e‑File portal. No fee is required for the renewal.

Renewal includes submission of the Annual Report and payment of the renewal fee.

Minimum 6 hours of approved professional development per staff member per year.

Inspection covers food safety, sanitation, and child‑health practices.

Must have working smoke detectors, fire extinguishers, and an evacuation plan posted.

Check with the city or county building department for exact schedule.

If the LLC is taxed as a corporation; otherwise file Form 1065 (partnership) with the IRS and attach Schedule K‑1 to Minnesota return.

Required if expected tax liability exceeds $500 for the year.

Electronic filing is required for most employers.

Report wages and pay UI contributions electronically via the UI Online system.