Sales Tax

I formed a Minnesota LLC and now need to understand sales tax registration

Started by QuietFalcon • November 11, 2026 • 8 replies
QuietFalcon

Hey everyone, I just filed the articles for my Minnesota LLC (a small e-commerce thing selling handmade candles). Do I need to register for sales tax right away, or only once I make a certain amount? The MN revenue site is a bit overwhelming and I don't want to mess up before I even launch. Any pointers?

grumpycactus

Register before you sell anything. MN doesn't have a threshold for sellers—if you're making taxable sales, you need a permit from the get-go. Also, your candles are taxable. Good luck.

DandelionWine

Not entirely true @grumpycactus. There is a small seller exception but it's for remote sellers with under $100k in MN sales and fewer than 200 transactions. But since OP is a Minnesota LLC, that probably doesn't apply if they have a physical presence (even a home address). So yeah, probably need to register.

QuietFalcon

Thanks both. So if I'm operating from my apartment in Minneapolis, that counts as physical presence? Ugh, I was hoping to avoid paperwork until I had actual revenue.

PixelatedOwl

Yep, home office = physical presence in MN. You'll need to register with the Dept of Revenue. It's not too bad, just fill out the online form. Also don't forget local sales taxes if you're in a special taxing district (Minneapolis has some).

northshore_ned

Just want to add: if you're selling on marketplaces libke Etsy, they might collect and remit sales tax for you. But you still need to register as a seller. And if you sell at craft fairs, you'll need to collect there too. Paperwork never ends, lol.

DandelionWine

Also, don't forget to check if your city has a local sales tax. Minneapolis does. You might need to register separately for that. The MN Revenue site has a tax rate finder tool that's actually pretty helpful.

grumpycactus

And if you're making candles, check if they're considered 'food' or something weird. Probably not, but MN has some quirky exemptions. Candles are generally taxable thogh. Don't overthink it, just register and start collecting.

QuietFalcon

Appreciate all the info. I'll go ahead and start the registration this weekend. The tax rate finder sounds useful. Thanks for the help!

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