Complete guide to permits and licenses required to start a fitness / gym in Bloomington, MN. Fees, renewal cycles, and agency contacts.
Mandatory for all employers with one or more employees in Minnesota, including LLC members who are active in operations. Sole proprietors without employees are exempt unless working under a general contractor requiring coverage. Coverage must be obtained through private insurers or the state fund (if eligible).
Not statutorily required by Minnesota law for all businesses, but strongly recommended and often contractually required by landlords, municipalities, or third parties. Gyms face high liability exposure due to equipment use and physical activity. Some cities may require proof for business licensing.
Required for any business-owned or regularly used vehicle in Minnesota. Minimum liability limits: $30,000 bodily injury per person, $60,000 per accident, $10,000 property damage. Applies if the gym owns or operates vehicles for member transport, equipment delivery, or mobile services.
Minnesota requires all health clubs (including gyms, fitness centers, and studios) that sell prepaid memberships to register with the MN Department of Commerce and post a $10,000 surety bond. This protects consumers if the business closes unexpectedly. Applies to LLCs offering recurring memberships. Registration must be renewed annually.
Not mandated by Minnesota law, but highly recommended for fitness businesses offering personal training, fitness assessments, or health advice. Covers claims of negligence, improper instruction, or failure to warn. Often required by landlords or third-party platforms.
Not legally required in Minnesota, but necessary if the gym sells products to members. Coverage protects against claims of injury due to defective or unsafe products. Recommended to be bundled with general liability or as part of a commercial package policy.
Required only if the fitness business operates a bar or lounge and holds a liquor license. Most gyms do not serve alcohol, so this typically does not apply. If applicable, coverage must meet state and local requirements. Enforced through liquor license conditions.
Required for LLCs with employees or more than one member, and for opening a business bank account.
Multi‑member LLCs default to partnership taxation (Form 1065). Single‑member LLCs are disregarded entities and report on Schedule C of the owner’s Form 1040.
LLC owners who are employees must also have taxes withheld.
Applies to gyms for equipment safety, electrical hazards, bloodborne pathogen exposure, and general workplace safety.
Most gyms fall under the 10‑employee threshold; if so, must keep OSHA 300 Log.
Gyms are considered places of public accommodation and must provide accessible entrances, equipment, locker rooms, and programs.
Most modern gyms have HVAC systems; owners must ensure qualified technicians perform maintenance.
Fitness claims (e.g., weight loss, health benefits) must be truthful, substantiated, and not deceptive.
Required if using a trade name different from LLC name on file. Renew every 10 years for $30 online/$50 paper.
Required for all LLC formation. Annual renewal not required but must file biennial report.
Filing required even with no fee to maintain good standing.
Required for sales tax (gym memberships typically taxable), withholding tax if employees. Fitness gyms subject to 6.875% state sales tax on memberships.
All employers must register regardless of employee count.
Must obtain insurance or file for self-insurance; gyms with equipment pose higher risk.
Fitness center memberships and training sessions are subject to sales tax.
Tanning services are subject to sales tax in Minnesota. Sales of fitness memberships are generally exempt. However, if the business sells taxable items (e.g., bottled water, protein bars, apparel), a sales tax permit is required.
Employers must withhold state income tax from employee wages. Registration is done through the Minnesota Business One Stop portal.
Employers with at least one employee must register. Rates are experience-rated after the first few years. Registration is completed through the DEED Employer Self-Service portal.
LLCs taxed as pass-through entities must file Minnesota Form M1. The business itself does not pay income tax, but must file an annual return to report income passed to members. Members report income on personal returns.
Minnesota repealed its franchise tax for most businesses effective January 1, 2023. LLCs are no longer subject to this tax.
Many Minnesota cities require a local business license or privilege tax. For example, Minneapolis requires a general business license. Fees and requirements vary by municipality. Check with the city clerk in the jurisdiction where the gym is located.
Tanning services are subject to Minnesota sales tax. This includes UV and non-UV tanning. Registration for sales tax is required even if the business does not otherwise sell taxable goods.
All employers in Minnesota with employees must carry workers’ compensation insurance. Coverage must be obtained through a private insurer or self-insurance application. Class code for gyms is typically 9103 (Fitness Centers).
Most Minnesota cities require a local business license. Examples: Minneapolis ($150–$400), Saint Paul ($50–$150), Duluth ($100–$200). Check with your city clerk. Some cities require annual renewal.
Gym owners must pay at least the federal minimum wage ($7.25/hr as of 2024) and overtime for >40 hrs/week unless exempt.
Most small gyms will not meet the employee threshold, but note the condition.
Must be completed for each employee; optional use of E‑Verify for additional verification.
Even if the gym only resells supplements, the manufacturer must be cGMP‑compliant; the gym must ensure proper labeling and avoid false claims.
Most small gyms do not export equipment, but the requirement is listed for completeness.
All businesses must obtain; specific to location - check with City Clerk
No general business license for most fitness gyms; city licenses supersede
Fitness gyms typically permitted in C1-C4, IL, IR zones; variance may be needed
Required for gym equipment installation affecting structure
Must comply with zoning sign regulations (max size varies by district)
Gyms classified as Assembly A-3; sprinklers, exits, extinguishers required
Required when converting space to gym use
Monitored systems required for larger gyms
Separate from food service requirements
May require traffic study for high-impact locations
Chapter 114.20 Minneapolis Code of Ordinances
An Employer Identification Number (EIN) is a unique tax ID number assigned by the IRS to businesses operating in the United States. It’s required for filing federal taxes and opening a business bank account.
ADA compliance means ensuring your gym is accessible to individuals with disabilities, including accessible entrances, restrooms, and workout equipment. The Department of Justice (DOJ) enforces these standards, and costs can range from $0 to $50,000 depending on necessary modifications.
The FTC focuses on truthful and non-misleading advertising, particularly regarding weight loss claims, membership contracts, and cancellation policies. Ensure all claims are substantiated and contracts are clear and fair.
Yes, maintaining accessibility is an ongoing responsibility. Regular inspections and updates may be necessary to ensure continued compliance with ADA standards, and documentation of these efforts is recommended.
Failing to file or incorrectly filing federal income taxes can lead to penalties, interest charges, and even legal prosecution. It’s crucial to understand your filing obligations and seek professional assistance if needed.
Permit Finder asks follow-up questions to give you an exact list of permits.
Find Your Permits