How to Open a Restaurant in Minneapolis: Square-Foot License Fees, Plan Review and Alcohol Tiers

Opening a restaurant in Minneapolis means collecting several separate approvals, and no single business license covers them all. Minnesota issues no general statewide business license, and Minneapolis and St. Paul license by category rather than issuing a general business license. What you will actually file is entity paperwork with the Secretary of State, a tax registration with the Department of Revenue, and city licenses for food service, alcohol and building use. This guide puts those steps in the order that avoids the most expensive rework.

The fees below are the figures verified on 2026-10-23. Where a number is not in that set, this article says so and names the agency to confirm it with. Treat this as informational content, not legal or tax advice. A Minnesota attorney and a CPA should review your entity choice, your lease and your liquor plans before you commit money.

What You Need Before You Start

Gather these items before your first call to the city. Having these ready keeps the file moving.

• A signed lease, or a letter of intent, for one specific address
• A floor plan with the public area and total area measured and labeled, because the food license fee depends on square footage
• A business name you have already checked on the Secretary of State business search
• Articles of Organization if you form an LLC, or Articles of Incorporation if you form a corporation
• A federal Employer Identification Number
• A concept summary covering seating, hours, food preparation, delivery, and whether you plan live entertainment or alcohol
• Personal details for every owner, since city and state applications ask for them
• A budget line for plan review, build-out, utility work and the Met Council sewer charge

Step 1: Choose Your Entity and Check the Name

Most independent restaurants form a limited liability company (LLC). Articles of Organization under Minnesota Statutes, Chapter 322C cost $155 when filed online or in person, or $135 by mail. Online and in-person filings are expedited, and mail filings are not. The Secretary of State does not publish a guaranteed turnaround in business days, so leave a gap between filing and your lease start date. Remember that filing the articles is a filing, not a license.

Your name must contain 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 entity already on file, authorized, registered or reserved in Minnesota (Minn. Stat. 322C.0108). Search the name at the Secretary of State business search before you order signage. If you need time to line up financing, a name reservation costs $55 for 12 months and can be renewed in 12-month periods.

Minnesota requires a registered office, not a registered agent. The office must be a Minnesota street address, and a PO box by itself is not accepted. It does not have to be the restaurant address. Naming an agent is optional for a domestic LLC.

Tax treatment also depends on the entity. Minnesota has no separate LLC franchise tax. An LLC taxed as a partnership or disregarded entity passes income to its owners, who pay individual income tax at rates from 5.35 to 9.85 percent. An LLC taxed as a C corporation pays the 9.8 percent corporation franchise tax. A minimum fee under Minn. Stat. 290.0922 also applies to C corporations, S corporations and partnerships, though a single member LLC that reports only on the member's individual return is exempt. Ask a CPA which structure fits your numbers.

Step 2: Register a Trade Name if You Need One

If the restaurant will operate under a name other than the entity's legal name, you need a Certificate of Assumed Name, commonly called a DBA, under Minnesota Statutes, Chapter 333. DBAs are filed only with the Secretary of State, not with the city. The fee is $50 online or in person, or $30 by mail.

Publication is the step people 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. For a Minneapolis restaurant, that is Hennepin County. Failure to publish may render the certificate invalid. The certificate must be renewed each year at no charge. Forms and instructions are at the Secretary of State DBA page. LLC and corporation formation needs no publication, so the newspaper step applies only to the DBA.

Step 3: Register With the Department of Revenue

Register for a Minnesota Tax ID and a Sales and Use Tax account before you make taxable sales. Most restaurant sales are taxable, so register before opening day. This registration is a tax account, not a license. Apply through the Department of Revenue new business registration page, and use the Department of Revenue home page for general guidance.

The state sales tax rate is 6.875 percent, and local taxes are added on top. Your menu pricing and point-of-sale setup should reflect the combined rate for your address, so confirm the current local rate with the Department of Revenue before you set prices.

If the site sits inside the Downtown Taxing Area, restaurant and liquor taxes of 3 percent each apply in addition to the sales tax. Check the boundary with the city before you sign, because the difference shows up on every sale.

Step 4: Confirm Zoning and Measure the Space

Restaurant use is a zoning question before it is a licensing question. Ask city planning whether restaurant use is allowed at the address and whether there are conditions on hours, outdoor seating or signage. Do this before you sign the lease. No license can fix a site that cannot host a restaurant.

Then measure the space carefully. The food license fee is set by square footage, and the brackets change at 1,000, 3,000, 5,000, 7,000, 9,000, 11,000, 13,000 and 15,000 square feet. A small measurement difference can move you across a bracket line. Ask Environmental Health which measured area counts toward the bracket, and make sure the figure on your application matches what the city measures.

Step 5: Submit Plan Review Before Construction

A new restaurant needs plan review before build-out starts. Minneapolis Environmental Health is the food licensor, and you can reach it at 612-673-2301 to start the process. Plan review applies alongside the Certificate of Occupancy and the Met Council Sewer Availability Charge. The plan review fee and submittal checklist are not part of this verified set, so confirm both with Environmental Health before you submit.

Submit complete drawings that show equipment locations, sinks, hood and ventilation details, finish schedules, storage and the restroom layout. Wait for approval before you order equipment or start permanent work. Changes on paper cost far less than changes after construction, so build a revision round into your schedule.

Step 6: Plan for the Certificate of Occupancy and the Met Council Charge

The Certificate of Occupancy confirms the building is approved for restaurant use. Ask the city for its fee and inspection sequence, because those figures are not in this verified set.

The Metropolitan Council (Met Council) sets the Sewer Availability Charge for new connections, and it determines how many SAC units your restaurant is assigned. One unit is $2,485. Multiply the unit count the Met Council assigns by $2,485 to get your charge. Ask the Met Council to confirm the unit count in writing before you finalize the budget, because the number is the agency's determination, not your estimate.

Step 7: Apply for the Food License by Square Foot

Environmental Health issues the food license, and the 2026 fee depends on the measured square footage from Step 4:

Square footage	2026 food license fee
1,000 or less	$431
1,001 to 3,000	$567
3,001 to 5,000	$719
5,001 to 7,000	$856
7,001 to 9,000	$1,003
9,001 to 11,000	$1,139
11,001 to 13,000	$1,286
13,001 to 15,000	$1,423
15,001 and above	$1,706

For example, a 2,400 square foot restaurant falls in the 1,001 to 3,000 bracket and pays $567 for the food license. The city proposes no 2027 fee increase. The 2026 hospitality fee relief, however, was time-limited, so do not budget as if it still applies. Confirm current amounts with Environmental Health before you finalize your numbers.

Step 8: Decide on Alcohol and Choose an Entertainment Tier

Alcohol is an add-on to the food license, and its price depends on the live-entertainment tier you apply for. Choose the tier that matches your real plans, not your best case. A band or DJ added later can require a different tier, so ask the city to explain the tier definitions before you finalize your entertainment plan.

License	Tier or condition	2026 fee
Beer on-sale	None	$1,318
Beer on-sale	Limited	$2,704
Beer on-sale	General	$5,061
Liquor on-sale	None, limited and general, in that order	$7,124, $8,479 and $10,873
Liquor on-sale	With adult entertainment	$11,807
Liquor off-sale	Not tiered	$1,500

Confirm two things with the city before you budget. First, check which liquor amount maps to each tier, since the verified schedule lists the liquor on-sale figures in order but the tier mapping should come from the city. Second, confirm whether the adult entertainment figure applies to your concept. On the state side, check with the Alcohol and Gambling Enforcement Division to see whether any state filing applies to the license type you choose.

Downtown sites carry the 3 percent liquor tax described in Step 3, so add it to your alcohol budget if your address is inside the Downtown Taxing Area.

Step 9: Check the Trade and Activity Licenses Your Concept Triggers

Because Minnesota has no general statewide business license, the rest of your permits depend on what the restaurant does. Depending on your concept, you may deal with the Department of Labor and Industry (DLI), the Minnesota Department of Health (MDH), the Minnesota Department of Agriculture (MDA), the Alcohol and Gambling Enforcement Division, the Office of Cannabis Management, DCYF if you run child care alongside the restaurant, MnDOT if your work touches state right of way, DVS for vehicle matters such as delivery vehicles, and professional boards for licensed staff.

Use License Minnesota to browse requirements by topic, by agency or through the A to Z index. Ask each agency whether your concept needs its license. Do not assume you do or do not need a specific one without checking.

Step 10: Set Up Your Compliance Calendar

• LLC Annual Renewal: due December 31 every calendar year. It costs $0 if the LLC is active and in good standing. Missing the deadline terminates or revokes the LLC without further notice under Minn. Stat. 322C.0705. Reinstatement costs $65 by mail or $85 online or in person.
• DBA renewal: renew each year at no charge.
• Sales tax filings: confirm the filing frequency the Department of Revenue assigns to your account.
• Food and alcohol renewals: confirm renewal dates with Environmental Health and the city licensing office, since they are set by the city.
• Free advice: the Minnesota Small Business Development Center Network, administered by DEED, can review your plan before you spend money.

Common Mistakes to Avoid

• Searching for a state business license. There is none. The work is done by trade, activity and city category.
• Signing a lease before confirming zoning, the square-foot count and the Downtown Taxing Area status.
• Building before plan review approval, then paying for changes.
• Using a PO box as the registered office.
• Forgetting the DBA newspaper publication, which can leave the certificate invalid.
• Picking an alcohol tier that does not fit your entertainment plans.
• Budgeting with the 2026 hospitality fee relief, which was time-limited.
• Treating the Met Council unit count as your own estimate instead of the agency's determination.

Tips for a Smoother Filing

• Call Environmental Health before you sign the lease and ask for the square-foot and plan review requirements in writing.
• Make lease contingencies match your approvals, so a zoning or plan review problem does not leave you paying rent on an unusable space.
• Keep one spreadsheet with every fee, the agency that sets it, the date you confirmed it and the name of the person who confirmed it.
• File the Secretary of State items first, since they are quick and the entity name is needed on most other applications.

Expected Results

Operators who work through these steps in order may reach opening day with fewer redesigns and fewer surprise charges. Doing the zoning, measurement and plan review checks before the lease and build-out can help you avoid paying for equipment or construction that the city does not approve. Results depend on your site, your concept and current city workload. This article cannot promise a timeline or an approval outcome. The verified figures do not include a guaranteed city turnaround, so confirm current processing times with Environmental Health and the Secretary of State before you set an opening date.

Helpful Resources

• Minnesota Secretary of State: entity filings, name checks and DBAs
• Minnesota Department of Revenue: tax registration and rates
• License Minnesota: state license lookup by topic, agency or A to Z
• Minnesota Small Business Development Center Network: free business planning help
• Minneapolis Environmental Health: 612-673-2301, food license, plan review and submittal questions

Important Note

This article is informational, not legal or tax advice. Leases, liquor licensing, entity tax treatment and build-out contracts are complex and differ by business. Consult a qualified Minnesota attorney before you sign a lease or a liquor application, and consult a CPA before you choose an entity structure.