You need a Minnesota tax ID number if you:
- make taxable sales or leases,
- perform taxable services in Minnesota,
- withhold Minnesota income taxes from employees’ wages,
- make estimated business tax payments,
- file a Minnesota corporation franchise, S corporation or partnership tax return,
- file fiduciary income tax returns as an estate, trust or personal representative,
- file or pay MinnesotaCare taxes or special taxes, such as alcohol, tobacco or insurance premium taxes,
- are a vendor of goods or services to a state government agency or to a business receiving payments from a state agency,
- have use tax to report (see Sales Tax Fact Sheet 146, Use Tax for Businesses, or Sales Tax Fact Sheet 156, Use Tax for Individuals), or
- have solid-waste management (SWM) taxes to report (first, register for sales and use tax online, then call 651-282-5770 to register for SWM taxes).
If you already have a Minnesota tax ID number, you may need to apply for a new one if:
- your business changes its legal organization, or if
- you are required to apply for a new federal employer ID number.
You do not need a Minnesota tax ID number to:
- apply as a nonprofit for an exemption from Minnesota sales tax. Instead, complete Form ST16, Application for Nonprofit Exempt Status—Sales Tax.
- apply for federal exempt status as a nonprofit organization under Internal Revenue Code Section 501(c)(3). Go to the Internal Revenue Service website at www.irs.gov.
- open a bank account for your business. If you need a federal employer ID number, go to the IRS website at www.irs.gov.
Apply for a Minnesota Tax ID – Business Tax Registration
You can apply for a Minnesota Tax ID number for your business on this page of the Minnesota Department of Revenue’s website.
Report Business Changes
If you
- change the name, address or ownership of your business;
- change officers;
- close your business;
- no longer have employees;
- or make any other change (even if it does not affect the status of your tax ID number);
Notify the Minnesota Department by logging into e-File Minnesota. Click on “Update business info” on the main menu page. If you do not have access to e-File Minnesota, call 651-282-5225. Be sure to have your current Minnesota ID number ready when you call, and include it on all correspondence.
Employers who cancel their Minnesota ID number for withholding are required to file a year-end return (if you’re a quarterly filer) or an annual return (if you’re an annual filer) within 30 days after the end of the period in which you cancel the number.
Minnesota Business Tax ID Penalties
Minnesota law provides for a $100 penalty if you do not apply for a tax ID number before the date you first withhold Minnesota taxes from an employee’s wages. State law also provides for criminal penalties for making taxable retail sales in Minnesota before a Minnesota tax ID number is issued.
Use of Business Information
Under state law, most information on your application is nonpublic. The information that is nonpublic may not be given to others without your consent except to the IRS, other state agencies or other states that guarantee the same privacy. Information on this application may be used in connection with an audit of any tax return that you may be required to file with the Minnesota Department of Revenue. The information referring to business owners or corporate officers, including Social Security numbers, may be used to collect any sales, withholding and/or MinnesotaCare taxes that become delinquent. The Social Security numbers are required according to Minnesota Statutes (M.S.) 270C.306; 290.92, subd. 24; and Rule 8130.2500, subp. 6.
Business Successor Liability
If you are buying or acquiring a business or its assets, it is your responsibility to check for sales or withholding tax liens filed against it by the Minnesota Department of Revenue. If you don’t, you may be liable for the delinquent taxes of the business. This is true even if the acquisition is a gift.
If there is a lien, notify our office of the transfer at least 20 days before you buy or take possession of the assets. Be sure to include the Minnesota tax ID number of the transferring business. If you do not notify the Minnesota Department of Revenue of the transfer, you may be liable for any unpaid sales and withholding taxes.
Do not attach your transfer notification to your Application for Business Registration, Form ABR. Instead, mail it separately to:
Minnesota Department of Revenue
MCE—Successor Liability
Mail Station 6550
St. Paul, MN 55146-6550
Power of Attorney
If you want to appoint an individual—such as an attorney, accountant, agent, tax return preparer, tax provider or any other person—to represent you as an attorney-in-fact or to perform certain acts on your behalf, you must complete, sign and return Form REV–184, Power of Attorney. You can download the form here.
Without a Form REV-184—or a similar notice that grants power of attorney—on file, the department may not discuss your state taxes with anyone else, unless permitted by law.
Electronic Filing and Paying
Minnesota’s electronic file and pay system, e-File Minnesota, allows you—either over the Internet or by phone—to electronically pay all of your Minnesota taxes and to electronically file selected tax returns. Both options are free and available 24 hours a day.
To electronically file or pay your tax, go to www.taxes.state.mn.us. If you don’t have Internet access, you can file or pay by calling 1-800-570-3329 from a touch-tone phone.
The e-File Minnesota system is secure and provides you with instant confirmation.
Complete details on your electronic filing and payment requirements will be provided when you receive your Minnesota ID number.
This post is part of a series of posts on the Minnesota business registration process.
CREDIT: The content of this post has been copied or adopted from the Minnesota Department of Revenue’s Minnesota Application for Business Registration Instruction Booklet.
