Restaurant Permits & Licenses in Bloomington, MN

Complete guide to permits and licenses required to start a restaurant in Bloomington, MN. Fees, renewal cycles, and agency contacts.

Certificate of Assumed Name (DBA)

Minnesota Secretary of State
May Apply
Fee: $30.00-$30.00
Renewal: one time
Type: registration

Required if using a trade name/DBA. Electronic filing available.

LLC Articles of Organization

Minnesota Secretary of State
Required
Fee: $135.00-$135.00
Renewal: one time
Type: registration

All LLCs must file. Annual renewal notice tracks compliance but no fee unless late.

Minnesota Sales and Use Tax ID (Seller's Permit)

Minnesota Department of Revenue
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Restaurants collect 6.875% state sales tax + local taxes (total up to ~10%). Online registration via e-Services.

Minnesota Withholding Tax Account

Minnesota Department of Revenue
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Required for employers. Quarterly/annual returns required.

Unemployment Insurance Tax Account

Minnesota Unemployment Insurance Program
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Online registration via employer self-service system.

Food Service Establishment License (Plan Review & License)

Minnesota Department of Health
Required
Fee: $200.00-$1000.00
Renewal: one time
Type: license

State sets standards; local city/county health dept issues license. Comply with MN Food Code.

Retail Food Handler Certification (Certified Food Protection Manager)

Minnesota Department of Health
May Apply
Fee: $100.00-$200.00
Renewal: one time
Type: permit

Person-in-charge must be certified. Approved courses: ServSafe, etc.

Liquor License (if serving alcohol)

Minnesota Department of Public Safety (Alcohol and Gambling Enforcement)
May Apply
Fee: $200.00-$3000.00
Renewal: one time
Type: license

Requires local (city/county) approval first, then state license. Multiple types (beer, wine, full liquor).

Cigarette/Tobacco Products License

Minnesota Department of Revenue
May Apply
Fee: $60.00-$400.00
Renewal: one time
Type: license

Online application. Local permits may also apply.

Minnesota Sales and Use Tax Permit

Minnesota Department of Revenue
May Apply
Renewal: one time
Type: registration

Restaurants must collect and remit sales tax on all taxable food and drink sales. Sales tax rate varies by location (typically 6.875%–10.66%). Registration is mandatory even if operating as an LLC.

Minnesota Employer Withholding Tax Registration

Minnesota Department of Revenue
May Apply
Renewal: one time
Type: registration

Employers must withhold state income tax from employee wages and remit it to the state. Registration is done through the same system as sales tax (MN Business One Stop).

Minnesota Unemployment Insurance Tax Registration

Minnesota Department of Employment and Economic Development (DEED)
May Apply
Fee: $39500.00-$39500.00
Renewal: one time
Type: registration

Employers pay unemployment insurance tax based on taxable wages (first $38,500 per employee in 2024). New employers typically pay a standard rate of 1.2%. Rate adjusts based on experience rating after three years.

Minnesota Corporate Franchise Tax (for LLCs taxed as corporations)

Minnesota Department of Revenue
May Apply
Fee: $135.00-$135.00
Renewal: one time
Type: permit

Most LLCs are pass-through entities and do not pay franchise tax. However, if the LLC has elected corporate tax treatment, it must file Form M2 for C-corps or M8 for S-corps. Standard rate is 9.8% for C-corps on Minnesota-sourced income.

Minnesota Pass-Through Entity Tax (Optional Election)

Minnesota Department of Revenue
May Apply
Renewal: one time
Type: registration

Effective 2023, Minnesota allows pass-through entities (like LLCs) to elect entity-level taxation at 5.35% to help owners avoid federal SALT cap limits. If elected, owners may claim a credit on their individual returns.

City of Minneapolis Food License and Local Tax (if applicable)

City of Minneapolis
May Apply
Fee: $150.00-$500.00
Renewal: one time
Type: registration

Includes food license and local business tax. Requires annual renewal and health inspections. Separate from state requirements. Other cities may have similar local taxes or fees.

Local Option Lodging, Camping, and Tourism Excise Tax

Minnesota Department of Revenue
May Apply
Renewal: one time
Type: permit

Some counties and cities impose additional excise taxes on food and beverage sales for tourism promotion. These are collected and remitted along with state sales tax. Rates vary by location.

Federal Employer Identification Number (EIN)

Internal Revenue Service (IRS)
May Apply
Renewal: one time
Type: registration

Mandatory for opening a business bank account and filing federal/state taxes. Can be obtained online at no cost.

City of Minneapolis Business License

City of Minneapolis
May Apply
Fee: $50.00-$300.00
Renewal: annual
Type: license

Required for all businesses; restaurants fall under general business license category. Specific food-related licenses handled separately.

Hennepin County Business License

Hennepin County, MN
May Apply
Fee: $100.00-$100.00
Renewal: annual
Type: license

Restaurants typically licensed at city level; county license required only for certain county-regulated activities.

Zoning Use Permit (Minneapolis)

City of Minneapolis
May Apply
Fee: $276.00-$1200.00
Renewal: one time
Type: permit

Restaurants permitted in C1-C4 commercial zones; conditional use permit needed in some residential zones per Minneapolis Zoning Code Chapter 520.

Building Permit for Restaurant Fit-Out

City of Minneapolis
May Apply
Fee: $0.12-$0.12
Renewal: one time
Type: permit

Required for commercial kitchen installation, HVAC changes, ADA compliance upgrades.

Sign Permit (Minneapolis)

City of Minneapolis
May Apply
Fee: $150.00-$500.00
Renewal: one time
Type: permit

Wall signs limited to 1.5 sq ft per linear ft of building frontage per Zoning Code 521.70.

Minneapolis Food Service License

City of Minneapolis Health Department
May Apply
Fee: $510.00-$510.00
Renewal: annual
Type: license

Requires plan review ($450) prior to opening. Certified Food Protection Manager required on-site.

Fire Alarm System Permit (Minneapolis)

City of Minneapolis Fire Department
May Apply
Fee: $100.00-$300.00
Renewal: one time
Type: permit

Required for all assembly occupancies >50 persons per Fire Code adoption of IFC 2018.

Fire Sprinkler Permit (Minneapolis)

City of Minneapolis Fire Department
May Apply
Fee: $150.00-$150.00
Renewal: one time
Type: permit

Required per International Fire Code as locally amended.

Certificate of Occupancy (Minneapolis)

City of Minneapolis
May Apply
Fee: $150.00-$150.00
Renewal: one time
Type: permit

Restaurants classified as A-2 Assembly occupancy.

Hennepin County Food Handler Testing

Hennepin County Public Health
May Apply
Fee: $15.00-$15.00
Renewal: one time
Type: permit

Required by Minneapolis Code of Ordinances 244.2575 even with city license.

Workers' Compensation Insurance

Minnesota Department of Labor and Industry (MN DLI)
May Apply
Fee: $1.50-$3.00
Renewal: one time
Type: certificate

Required for all employers with one or more employees in Minnesota. Sole proprietors are not required to carry coverage for themselves unless they elect coverage. Coverage must be obtained through private insurers or the state fund (if eligible).

General Liability Insurance

Not applicable (no state mandate)
May Apply
Fee: $500.00-$1500.00
Renewal: one time
Type: certificate

Not mandated by Minnesota state law, but often required by landlords, municipalities, or lenders. Strongly recommended for restaurants due to slip-and-fall and property damage risks.

Commercial Auto Insurance

Minnesota Department of Public Safety – Driver and Vehicle Services (DVS)
May Apply
Fee: $1200.00-$2500.00
Renewal: one time
Type: certificate

Required if the business owns or regularly uses vehicles for commercial purposes. Minimum liability coverage: $30,000 bodily injury per person, $60,000 per accident, $10,000 property damage. Applies to vehicles registered or operated in Minnesota.

Liquor Liability Insurance

Minnesota Department of Public Safety – Alcohol and Gambling Enforcement Division
May Apply
Fee: $500.00-$2000.00
Renewal: one time
Type: certificate

Required as a condition of obtaining and maintaining a liquor license in Minnesota. Also known as dram shop insurance. AGED may require proof of coverage during licensing or renewal.

Surety Bond – Liquor License Bond

Minnesota Alcohol and Gambling Enforcement Division (AGED)
May Apply
Fee: $100.00-$500.00
Renewal: one time
Type: certificate

A surety bond (typically $1,000–$10,000) may be required as part of the liquor licensing process, depending on license type and local jurisdiction. Ensures compliance with state alcohol laws.

Product Liability Insurance

Not applicable
Required
Fee: $1000.00-$3000.00
Renewal: one time
Type: certificate

Not mandated by Minnesota or federal law, but highly recommended for restaurants serving food. Covers claims related to food contamination or allergic reactions. FDA regulates food safety but does not require liability insurance.

Professional Liability / Errors and Omissions Insurance

Not applicable
Required
Fee: $500.00-$1200.00
Renewal: one time
Type: certificate

Not legally required for restaurants in Minnesota. Typically relevant for consultants or service professionals; not standard for food service. May be recommended for catering businesses offering event planning.

Obtain Employer Identification Number (EIN)

Internal Revenue Service (IRS)
May Apply
Fee: $0.00-$0.00
Renewal: one time
Type: registration

Required for LLCs with employees or those that file employment, excise, or alcohol taxes. Even single-member LLCs without employees may need an EIN if they have certain types of tax obligations.

Federal Income and Self-Employment Tax Filing (LLC Tax Obligations)

Internal Revenue Service (IRS)
Required
Fee: $200.00-$500.00
Renewal: one time
Type: filing

A single-member LLC is disregarded for federal tax purposes and reports income on Schedule C of the owner’s Form 1040. Multi-member LLCs are treated as partnerships and must file Form 1065. All restaurant LLCs must pay self-employment tax on net earnings.

OSHA Workplace Safety Compliance

Occupational Safety and Health Administration (OSHA)
May Apply
Renewal: one time
Type: permit

Restaurants must comply with general industry standards including hazard communication, emergency exits, fire safety, and prevention of slips/trips/falls. OSHA Form 300 (injury log) required only if business has more than 10 employees or is in a high-risk industry (restaurants generally exempt from mandatory recordkeeping unless specifically requested by OSHA).

Americans with Disabilities Act (ADA) Compliance

Department of Justice (DOJ)
May Apply
Fee: $1000.00-$25000.00
Renewal: one time
Type: permit

Applies to all restaurants serving the public. Requires accessible entrances, restrooms, seating, and menus. Must allow service animals. New construction or alterations must comply with ADA Standards for Accessible Design.

EPA Compliance for Grease and Waste Disposal

Environmental Protection Agency (EPA)
May Apply
Fee: $200.00-$1000.00
Renewal: one time
Type: permit

Restaurants must comply with Clean Water Act. Must prevent grease, oil, and food waste from entering sewer systems. May require connection to a grease interceptor and regular maintenance. Subject to inspection by EPA or municipal authorities.

FTC Compliance with Advertising and Consumer Protection

Federal Trade Commission (FTC)
Required
Renewal: one time
Type: permit

Applies to all restaurants engaging in advertising. Must not make false or misleading claims about food quality, sourcing (e.g., "organic", "locally grown"), prices, or health benefits. Menu labeling for chain restaurants with 20+ locations under ACA (see separate entry).

DOL Wage and Hour Compliance (Fair Labor Standards Act)

U.S. Department of Labor (DOL)
May Apply
Renewal: one time
Type: permit

Restaurants must pay federal minimum wage ($7.25/hour), overtime (1.5x regular rate after 40 hours/week), and comply with youth employment rules. Tip credits allowed under FLSA if conditions are met (e.g., tip credit notice, employee retains all tips).

DOL Family and Medical Leave Act (FMLA)

U.S. Department of Labor (DOL)
May Apply
Renewal: one time
Type: permit

Requires eligible employees (12 months, 1,250 hours) to be granted up to 12 weeks of unpaid, job-protected leave for qualifying medical/family reasons. Posting requirement: Display FMLA notice in workplace.

DOL Form I-9 Employment Eligibility Verification

U.S. Department of Homeland Security (DHS) / DOL
May Apply
Renewal: one time
Type: permit

All U.S. employers must complete Form I-9 to verify identity and employment authorization. Applies to all employees regardless of citizenship. E-Verify is voluntary unless required by state law or federal contract.

FDA Food Code Compliance (via Food Safety Modernization Act)

Food and Drug Administration (FDA)
May Apply
Fee: $200.00-$1000.00
Renewal: one time
Type: permit

While FDA does not directly inspect most restaurants, the FDA Food Code is adopted by Minnesota and enforced by state/local health departments. Federal oversight applies under FSMA for preventive controls, especially for facilities registered with FDA. All restaurants must comply with food safety standards including temperature control, hygiene, and allergen labeling.

Alcohol and Tobacco Tax and Trade Bureau (TTB) Permit (if selling alcohol)

Alcohol and Tobacco Tax and Trade Bureau (TTB)
May Apply
Renewal: one time
Type: license

Required only if restaurant sells alcohol for off-site consumption under federal law. On-premise sales (dining room) are regulated by state (Minnesota ABC). Federal permit required for certain alcohol-related activities under TTB jurisdiction.

Nutrition Labeling for Chain Restaurants (ACA Section 4205)

Food and Drug Administration (FDA)
May Apply
Fee: $500.00-$5000.00
Renewal: one time
Type: permit

Requires calorie counts on menus and menu boards, availability of written nutrition information, and statement about daily calorie needs. Applies to restaurants and similar retail food establishments.

Step-by-Step Compliance Guide

  1. First, obtain an Employer Identification Number (EIN) from the Internal Revenue Service, which is a requirement for operating as a business and has no associated fee.
  2. Next, register for Federal Income Tax with the IRS, as all restaurants operating in Bloomington must comply with federal tax regulations; the fee varies.
  3. Ensure your restaurant complies with the Americans with Disabilities Act (ADA) through the Department of Justice, with potential costs ranging from $200 to $5000.
  4. File for Federal Income and Self-Employment Tax with the IRS, a recurring obligation for LLCs with varying fees.
  5. Comply with FTC regulations regarding Truth-in-Advertising and Menu Labeling to avoid potential penalties; fees vary.
  6. Maintain accurate Recordkeeping for Tax Purposes as required by the IRS, which is essential for accurate tax filing and has varying costs.
  7. Register for Federal Income Tax Filing as a restaurant operating as an LLC, which has a fee of $0.00.
  8. Ensure ongoing Federal Trade Commission (FTC) Compliance with Advertising and Consumer Protection rules to protect consumers and your business; fees vary.

Common Mistakes to Avoid

  • Assuming ADA compliance is a one-time fix; ongoing assessments and adjustments are often needed.
  • Ignoring federal tax obligations, believing state taxes are the only concern.
  • Failing to accurately track income and expenses for tax purposes, leading to potential audits.
  • Neglecting to understand menu labeling requirements, potentially violating FTC regulations.
  • Believing an EIN is optional if you don't plan to hire employees.

Frequently Asked Questions

What is the cost of ADA compliance?

ADA compliance costs with the Department of Justice can range from $200 to $5000, depending on the extent of modifications needed for your Bloomington restaurant to be accessible.

How often do I need to file Federal Income Tax?

Federal Income Tax Filing with the IRS is generally an annual requirement for restaurants operating as LLCs in Bloomington, though the specific frequency can depend on your business structure and income level.

What does FTC compliance entail for a restaurant?

FTC compliance for restaurants in Bloomington involves truthful advertising and accurate menu labeling, ensuring consumers aren’t misled about products or pricing.

Is an EIN required even if I am the sole owner of the restaurant?

Yes, even if you are the sole owner, obtaining an EIN from the IRS is generally required if your restaurant operates as a Limited Liability Company (LLC).

What happens if I don’t comply with federal tax regulations?

Failure to comply with federal tax regulations can result in penalties, interest charges, and even legal action from the IRS, so it’s crucial to stay current with your obligations.

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