This is an overview of the steps involved in starting an herb business in Minnesota:

  1. Form an LLC under the business name you pick
  2. Obtain an EIN number for the LLC: EIN at the IRS
  3. Visit the Zoning Department at your city hall to ensure that you can conduct your business at your location
  4. Visit the Minnesota Department of Health’s Office of Unlicensed Complementary and Alternative Health Care Practice (OCAP) to determine what licenses and requirements are involved in preparing and selling your herbal products: https://www.health.state.mn.us/facilities/providers/compalt/index.html
  5. Visit the Minnesota Department of Agriculture to determine if any other licenses or requirements are involved in preparing your food products
  6. Determine if you need to collect sales tax and, if so, obtain a state sales tax number: https://www.revenue.state.mn.us/. If you are a retailer required to collect and remit Minnesota sales tax, the statute requires you to file an application with the commissioner for a sales and use tax permit (your Minnesota tax ID, the sales tax number) (Minn. Stat. § 297A.83, subd. 1(a), available at https://www.revisor.mn.gov/statutes/cite/297A.83); as a practical matter, the Department of Revenue requires you to register before you begin making taxable sales.
  7. If you have employees, obtain workers compensation insurance. Minnesota law requires every employer liable under the Workers’ Compensation Act to insure payment of compensation with an authorized carrier, or to obtain a written order from the commissioner of commerce permitting self-insurance (Minn. Stat. § 176.181, subd. 2, available at https://www.revisor.mn.gov/statutes/cite/176.181). That requirement is subject to the limited categories of excluded employment, such as family farm employees, sole proprietors and their family, certain closely held corporation officers, casual labor, and qualifying independent contractors (Minn. Stat. § 176.041, available at https://www.revisor.mn.gov/statutes/cite/176.041). Failure to insure exposes you to a penalty of up to $1,000 per employee for each week you are not in compliance (Minn. Stat. § 176.181, subd. 3).
  8. Ensure that your food label complies with FDA regulations: https://www.fda.gov/regulatory-information/search-fda-guidance-documents/guidance-industry-food-labeling-guide. If you market your herbal product as a dietary supplement, it contains “an herb or other botanical” and is “deemed to be a food,” but it follows the dietary-supplement labeling rules rather than the conventional Nutrition Facts panel (21 U.S.C. § 321(ff)). Such a label must bear a “Supplement Facts” panel, and each botanical ingredient must identify the part of the plant used, such as root, leaf, or stem (21 C.F.R. § 101.36). If you make any structure or function claim, you must add the disclaimer that the statement has not been evaluated by the Food and Drug Administration and that the product is not intended to diagnose, treat, cure, or prevent any disease (21 U.S.C. § 343(r)(6)). A false, misleading, or deficient label renders the food “misbranded” (21 U.S.C. § 343). If you instead sell the herb as a conventional food, such as an herbal tea, the ordinary food-labeling rules and a Nutrition Facts panel apply. The FDA’s Food Labeling Guide is a plain-language map to these rules, not the governing law itself.
  9. Consider consulting with an attorney who focuses on the specific requirements for selling herbs nationwide, including FDA (Food and Drug Administration) requirements: Michael H. Cohen
  10. The Minnesota Department of Health’s Office of Unlicensed Complementary and Alternative Health Care Practice (OCAP) will explain the following requirements to you:

Your business may be considered an “unlicensed complementary and alternative health care practitioner” under Minnesota Statutes § 146A.01, subd. 6 (available at https://www.revisor.mn.gov/statutes/cite/146A.01). The statute defines that term as “a person who” provides these services for remuneration, so it is you, the operator providing the services, who falls within the definition. All unlicensed complementary and alternative health care practitioners must provide each client, before treatment, with a written copy of the complementary and alternative health care client “bill of rights” (Minn. Stat. § 146A.11, subd. 1, available at https://www.revisor.mn.gov/statutes/cite/146A.11). Among its provisions, the bill of rights must include (1) the practitioner’s name, complementary and alternative health care title, business address, and telephone number; and (2) the practitioner’s degrees, training, experience, or other qualifications regarding the complementary and alternative health care being provided, followed by this statement in bold (Minn. Stat. § 146A.11, subd. 1(a)(2)):

“THE STATE OF MINNESOTA HAS NOT ADOPTED ANY EDUCATIONAL AND TRAINING STANDARDS FOR UNLICENSED COMPLEMENTARY AND ALTERNATIVE HEALTH CARE PRACTITIONERS. THIS STATEMENT OF CREDENTIALS IS FOR INFORMATION PURPOSES ONLY. Under Minnesota law, an unlicensed complementary and alternative health care practitioner may not provide a medical diagnosis or recommend discontinuance of medically prescribed treatments. If a client desires a diagnosis from a licensed physician, chiropractor, or acupuncture practitioner, or services from a physician, chiropractor, nurse, osteopathic physician, physical therapist, dietitian, nutritionist, acupuncture practitioner, athletic trainer, or any other type of health care provider, the client may seek such services at any time.”

The client is also entitled to a brief plain language summary of the theoretical approach used by the practitioner (Minn. Stat. § 146A.11, subd. 1(a)(8)). The law creates the Office of Unlicensed Complementary and Alternative Health Care Practice in the Minnesota Department of Health (Minn. Stat. § 146A.02, subd. 1, available at https://www.revisor.mn.gov/statutes/cite/146A.02). The office investigates complaints and takes and enforces disciplinary actions against all unlicensed complementary and alternative health care practitioners for violations of prohibited conduct. It also serves as a clearinghouse on such practices.

11. Consider joining an organization for herbal sellers: http://www.minnesotanaturalhealth.org/

This of course is merely an overview of the steps for starting an herb business in Minnesota. For advice specific to your situation, which may include additional steps, consult with an attorney.