How to Get a Minnesota Liquor License

Last updated: September 11, 2026

Minnesota has no state liquor license for a bar. The city or county issues it, sets the fee, runs the background check and decides whether the location is acceptable; the state approves the license afterward and sells you a $20 card to buy from wholesalers. Under Minnesota Statutes 340A.404 a city may license hotels, restaurants, bowling centers, clubs, exclusive liquor stores and resorts to sell on-sale intoxicating liquor, and under 340A.408 the fee “is intended to cover the costs of issuing and inspecting and other directly related costs of enforcement,” which is why the same license costs a different amount in every city. Section 340A.413 caps the number of on-sale licenses a city may issue by its class and population, but restaurants, hotels, clubs, bowling centers, theaters and wine licensees are exempt from the cap, so the quota bites only on a bar that is not a restaurant. The city may charge up to $500 for an in-state background investigation, the state adds a $20 buyer’s card, and the Civil Damages Act lets an injured third party sue a licensee that made an illegal sale, provided the claimant’s lawyer serves notice within 240 days.

Training: No State Card, a Statutory Discount for Off-Sale Training, and City Rules

Chapter 340A does not require servers to hold a permit or complete a course, and the state’s Alcohol and Gambling Enforcement Division lists “alcohol training” among its resources rather than its requirements. The one place training appears in the fee statute is 340A.408, subdivision 3, for off-sale licenses: the fee “shall be reduced by $100” if the licensee agrees to have a private vendor train all employees within 60 days of hire and annually thereafter, posts a policy requiring identification checks for anyone appearing 30 or younger, and runs a cash-award program for employees who catch underage buyers. For an on-sale license the training question belongs to the city that issues it, and city ordinances vary; check the licensing office where you will operate.

What the state does regulate is the sale. Section 340A.502 provides that “no person may sell, give, furnish, or in any way procure for another alcoholic beverages for the use of an obviously intoxicated person,” and 340A.503 bars sales to anyone under 21 and lets a licensee prove, as a defense, that it reasonably and in good faith relied on one of the forms of identification the statute names. Section 340A.410 requires every licensed premises to post a state-designed sign, 14-1/2 inches by 8 inches, stating the penalties for drunk driving and for serving an obviously intoxicated or underage person. Under 340A.415 the city or the commissioner may suspend a license for up to 60 days, revoke it, or impose a civil penalty of up to $2,000 per violation.

Who Can Be Licensed, and by Whom

Section 340A.404, subdivision 1, lets a city issue an on-sale intoxicating liquor license to hotels, restaurants, bowling centers, clubs or congressionally chartered veterans organizations (with the commissioner’s approval and three years of existence), exclusive liquor stores, sports facilities and resorts, plus theaters and, outside the seven-county metro, convention centers. A county issues licenses in unorganized territory and, under 340A.410, may not issue one inside an organized town without the town board’s consent, and may not issue or renew one until the sheriff and county attorney have recommended in writing that the applicant is eligible. Section 340A.412, subdivision 2, requires the city or county to conduct “a preliminary background and financial investigation of the applicant” on every new on-sale application or transfer, on a form the commissioner prescribes, and caps the investigation fee at $500 if the investigation is conducted within Minnesota or the actual cost up to $10,000 if it must go out of state. No license may issue if the investigation shows issuance would not be in the public interest.

The fee is local. Under 340A.408, subdivision 2, “the license fee for a retail on-sale intoxicating liquor license is the fee set by the city or county issuing the license,” intended to cover issuance, inspection and enforcement costs. The statute fixes ceilings only where it wants to protect a class: a club license may not exceed $300 for a club under 200 members up to $3,000 over 6,000 members, a wine license may not exceed half the on-sale fee or $2,000, and a town may add up to 20 percent to a county-issued license. The state’s own charge is the $20 Retailer’s (Buyer’s) Card for liquor and wine, issued by the Alcohol and Gambling Enforcement Division, which runs concurrently with the local license and takes about 30 days to determine. The Division describes its role as reviewing and approving retail licenses, running pre-licensing background checks, and serving as the statewide repository of license records.

The Cap, the Exemptions and the Places a License Cannot Go

Section 340A.413 limits on-sale intoxicating liquor licenses by city: one for every 1,500 residents up to 200 in a city of the first class, 18 plus one for every 2,500 residents over 45,000 in a city of the second class, 12 in a city of the third class, seven in a city of the fourth class, and six, five, four or three in statutory cities by population band. Voters may lift the cap by referendum. But subdivision 4 exempts the establishments most new operators are: “clubs, or congressionally chartered veterans organizations; restaurants; establishments that are issued licenses to sell wine; theaters; hotels; and bowling centers” may be licensed “in addition to the number authorized by this section.” A stand-alone bar counts against the cap; a restaurant with a bar does not. Section 340A.412, subdivision 4, then names where no license may issue at all: in areas zoned against commercial use (except restaurants there before the zoning), on the Capitol grounds and the State Fairgrounds, within 1,000 feet of a state hospital, prison or correctional institution, within 1,500 feet of a public school outside a city, and in a town or city whose voters rejected licensing under 340A.416, or within half a mile of one.

What It Costs

License or requirement	Who sets it	Amount
On-sale intoxicating liquor license	The issuing city or county; fee covers issuing, inspecting and enforcement (340A.408)	Set locally
Club on-sale license	Statutory maximums by membership: under 200 / 201 to 500 / 501 to 1,000 / 1,001 to 2,000 / 2,001 to 4,000 / 4,001 to 6,000 / over 6,000	$300 / $500 / $650 / $800 / $1,000 / $2,000 / $3,000
On-sale wine license	Statutory maximum	Half the on-sale fee or $2,000, whichever is less
Town surcharge on a county license	Town board	Up to 20% of the county fee
Background investigation fee	City or county, on a new license or transfer (340A.412)	Up to $500 in state; actual cost up to $10,000 out of state
Retailer’s (Buyer’s) Card	Alcohol and Gambling Enforcement Division; runs with the local license	$20
Off-sale training discount	Off-sale licenses only: 60-day staff training, ID policy and incentive program	$100 off the fee
Civil penalty for a violation	City or commissioner (340A.415)	Up to $2,000 per violation; suspension up to 60 days
Required signage	State-designed 14-1/2 by 8 inch sign on every licensed premises	Free to reproduce
Minnesota LLC	Articles of Organization (322C.0201); annual renewal by December 31	$135; renewal no fee

A License With No Price Tag and a Lawsuit With a Deadline

Every other state on this site publishes a number for its bar license. Minnesota publishes a principle: the city sets the fee to recover what licensing costs it, and the legislature intervenes only to cap what clubs and wine licensees can be charged. The result is that the same restaurant license is a few hundred dollars in one city and several thousand in another, and the honest answer to “how much is a liquor license in Minnesota” is the number on your city’s fee schedule. The state’s numeric caps in 340A.413 look like Pennsylvania’s county quota or Alaska’s population ratio, but the restaurant and hotel exemption means they rarely constrain a food-serving business; they constrain the tavern that serves no meals. What Minnesota adds on top is procedure: a mandatory background and financial investigation with a fee ceiling, the sheriff and county attorney’s written recommendation in the counties, a town board’s consent in organized townships, and a state approval step with its own $20 card.

The Civil Damages Act, 340A.801, is a real dram shop statute. A spouse, child, parent, guardian, employer or other person “injured in person, property, or means of support” by an intoxicated person “has a right of action in the person’s own name for all damages sustained against a person who caused the intoxication of that person by illegally selling alcoholic beverages” — and the illegal sales are the ones in 340A.502 and 340A.503, to an obviously intoxicated person or to someone under 21. Comparative fault applies, the licensee’s good-faith identification defense carries over, and insurers may not subrogate against the vendor. Then 340A.802 gives the licensee something most states do not: a notice rule. The claimant’s attorney must serve written notice on the licensee stating the time, date and person served, the injured person and the place of injury within 240 days of the attorney-client relationship forming, and no action may be maintained without it or more than two years after the injury. Idaho and Montana use a 180-day certified-mail notice; New Hampshire builds a training defense; Minnesota gives a bar eight months of certainty and then a full statutory cause of action.

How to Get Licensed, In Order

1. Start at city hall. Get the city’s on-sale license application, fee schedule and ordinance; if the premises is in unorganized territory or a town, the county issues it with the town board’s consent. Confirm the address is not in a zoned-out area, within 1,000 feet of a state institution, or in a dry town.
2. Form the entity — Minnesota Articles of Organization are $135 under 322C.0201, and the annual renewal due each December 31 carries no fee.
3. Pick the license that fits. A restaurant, hotel, club, bowling center or theater is exempt from the city’s numeric cap under 340A.413; a stand-alone bar counts against it and may need a slot or a referendum.
4. Submit to the investigation. The city or county runs a preliminary background and financial investigation on the commissioner’s form; the fee is capped at $500 in state. In a county, the sheriff and county attorney must recommend you in writing.
5. Get the council’s approval and pay the local fee, which the city sets to cover issuance, inspection and enforcement.
6. Apply for the state buyer’s card from the Alcohol and Gambling Enforcement Division, $20, which the Division says takes about 30 days and runs concurrently with the local license; wholesalers need it to sell to you.
7. Post the sign and train the staff on the two rules that create liability: no service to an obviously intoxicated person and none to anyone under 21, with ID checked against the documents 340A.503 accepts.

Staying Licensed

Renew locally and with the state. The local license renews on the city’s schedule; the buyer’s card renews annually on the same date. The Secretary of State renewal is due every December 31 at no fee, and missing it terminates the LLC.

Expect a re-investigation on a transfer. Section 340A.412 requires the background and financial investigation on any transfer of an existing license, and allows one before renewal when the city deems it in the public interest.

Treat a 240-day notice letter as the lawsuit it precedes. Under 340A.802 the notice names the sale, the server and the injury; a claimant who serves it on time has two years to sue under 340A.801.

Keep the sign up and the ID defense real. The 340A.410 sign is a license condition, and the good-faith identification defense in 340A.503 applies only to the documents the statute lists.

Frequently Asked Questions

How much is a liquor license in Minnesota?

Whatever your city charges. Under Minnesota Statutes 340A.408 the on-sale intoxicating liquor license fee is set by the city or county issuing the license and is intended to cover the costs of issuing, inspecting and enforcing it, so it varies from city to city. The statute caps only club licenses ($300 for a club under 200 members up to $3,000 over 6,000) and wine licenses (half the on-sale fee or $2,000, whichever is less). Add the background investigation fee, capped at $500 for an in-state investigation, and the $20 state buyer’s card.

Who issues liquor licenses in Minnesota?

Cities and counties. Under 340A.404 a city may issue on-sale intoxicating liquor licenses to hotels, restaurants, bowling centers, clubs, exclusive liquor stores, sports facilities, resorts and theaters; counties license unorganized territory and need the town board’s consent and the sheriff’s and county attorney’s written recommendation. The state’s Alcohol and Gambling Enforcement Division reviews and approves retail licenses, runs pre-licensing background checks and issues the $20 Retailer’s (Buyer’s) Card a licensee needs to buy liquor and wine from wholesalers.

Is there a limit on liquor licenses in Minnesota cities?

Yes, but restaurants are exempt. Section 340A.413 caps on-sale intoxicating liquor licenses at one per 1,500 residents up to 200 in a first-class city, 18 plus one per 2,500 residents over 45,000 in a second-class city, 12 in a third-class city, seven in a fourth-class city, and six, five, four or three in statutory cities by population, with a referendum available to exceed the cap. Subdivision 4 lets a city license clubs, restaurants, wine licensees, theaters, hotels and bowling centers in addition to those numbers, so the cap applies to bars that are not restaurants.

Do you need a license to bartend in Minnesota?

Not from the state. Chapter 340A sets no server permit or statewide training requirement; the Alcohol and Gambling Enforcement Division offers training resources, and 340A.408 gives off-sale licensees a $100 fee reduction for training all employees within 60 days of hire and annually, posting an ID policy for anyone appearing 30 or younger, and running an employee incentive program. Cities may impose their own server training rules by ordinance, so check the issuing city.

What is the background check for a Minnesota liquor license?

Under 340A.412, subdivision 2, the city or county must conduct a preliminary background and financial investigation of every applicant for a new on-sale license or a transfer, on the form the commissioner prescribes, and may order a comprehensive investigation itself or through the commissioner. The investigation fee may not exceed $500 if conducted within Minnesota, or the actual cost up to $10,000 if it must be conducted out of state, and no license may issue if the results show issuance would not be in the public interest.

Can a Minnesota bar be sued for over-serving?

Yes, under the Civil Damages Act. Minnesota Statutes 340A.801 gives a spouse, child, parent, guardian, employer or other person injured by an intoxicated person a right of action for all damages against a person who caused the intoxication by illegally selling alcoholic beverages, which under 340A.502 and 340A.503 means selling to an obviously intoxicated person or to someone under 21. Under 340A.802 the claimant’s attorney must serve written notice on the licensee within 240 days of the attorney-client relationship forming, stating when and to whom the alcohol was sold, who was injured and where; no action may be maintained without the notice or more than two years after the injury.

What does a Minnesota LLC cost?

Under Minnesota Statutes 322C.0201 an LLC is formed when articles of organization are filed with the Secretary of State with a payment of $135. Under 322C.0208 the LLC files an annual renewal by December 31 of each year after formation, and no fee is required for it; failing to file results in administrative termination.

Forming the company, taxes, insurance, and hiring are covered in our full guide to starting a business in Minnesota.

Sources

Source	What It Covers
Minnesota Statutes 340A.404 — Intoxicating liquor; on-sale licenses	A city may issue an on-sale intoxicating liquor license to hotels, restaurants, bowling centers, clubs or congressionally chartered veterans organizations with the approval of the commissioner provided the organization has been in existence for at least three years and sales are only to members and bona fide guests, sports facilities on land of the Minnesota Sports Facilities Authority or Metropolitan Sports Commission, exclusive liquor stores, and resorts; a city may issue an on-sale intoxicating liquor license to a theater and, outside the seven-county metropolitan area, to a convention center
Minnesota Statutes 340A.408 — Retail license fees	The license fee for a retail on-sale intoxicating liquor license is the fee set by the city or county issuing the license; the license fee is intended to cover the costs of issuing and inspecting and other directly related costs of enforcement; the annual fee for an on-sale license issued to a club must be no greater than $300 for a club with under 200 members, $500 for 201 to 500 members, $650 for 501 to 1,000, $800 for 1,001 to 2,000, $1,000 for 2,001 to 4,000, $2,000 for 4,001 to 6,000, or $3,000 for over 6,000 members; the fee for a wine license may not exceed one-half of the license fee charged for an on-sale intoxicating liquor license, or $2,000, whichever is less; a town board may impose an additional fee on a county-licensed establishment not to exceed 20 percent of the county license fee; the off-sale fee set by the issuing jurisdiction shall be reduced by $100 if the licensee agrees to have a private vendor train all employees within 60 days of hire and annually thereafter, posts a policy requiring identification checks for all persons appearing to be 30 years old or less, and establishes a cash award and incentive program
Minnesota Statutes 340A.412 — License restrictions; intoxicating liquor licenses	The city or county having jurisdiction over on-sale licenses shall on initial application or on application for a transfer conduct a preliminary background and financial investigation of the applicant, on a form prescribed by the commissioner; a comprehensive investigation may be conducted by the governing body or contracted to the commissioner, and one may be required before renewal when deemed in the public interest; an investigation fee not to exceed $500 shall be charged if the investigation is conducted within the state, or the actual cost not to exceed $10,000 if the investigation is required outside the state; no license may be issued, transferred or renewed if the results show issuance would not be in the public interest; no license may be issued where restricted against commercial use through zoning except to restaurants established before the restriction, within the Capitol or on the Capitol grounds, on the State Fairgrounds, within 1,000 feet of a state hospital, training school, reformatory, prison or other institution under the Direct Care and Treatment executive board or the commissioner of corrections, in a town or municipality whose voters rejected license under section 340A.416 or within one-half mile of it, or within 1,500 feet of any public school that is not within a city
Minnesota Statutes 340A.413 — Restrictions on number of intoxicating liquor licenses that may be issued	No on-sale intoxicating liquor license may be issued in any city in excess of: in cities of the first class, one license for every 1,500 population, up to 200 licenses; in cities of the second class, not more than 18 licenses plus one for every 2,500 population over 45,000; in cities of the third class, not more than 12; in cities of the fourth class, not more than seven; in statutory cities of 5,000 to 10,000 population, not more than six; of 2,500 to 5,000, not more than five; of 500 to 2,500, not more than four; and under 500, not more than three; the governing body may issue licenses over the number permitted when authorized by the voters at a general or special election; on-sale intoxicating liquor licenses may be issued to clubs or congressionally chartered veterans organizations, restaurants, establishments issued wine licenses, theaters, hotels and bowling centers in addition to the number authorized by this section
Minnesota Statutes 340A.410 — License restrictions; general	A county may not issue a retail license within an organized town unless the governing body of the town has consented; no county may issue or renew a retail license until the county board has received a written recommendation from the sheriff and county attorney that the applicant is eligible; a retail license must be posted in a conspicuous place; a licensed premises must post a sign 14-1/2 inches wide by 8 inches high designed by the commissioners of health and public safety stating the penalties of driving under the influence, penalties for serving alcoholic beverages to a person who is obviously intoxicated or under 21 years of age, and a warning regarding drinking alcohol while pregnant
Minnesota Statutes 340A.502 — Sales to obviously intoxicated persons	No person may sell, give, furnish, or in any way procure for another alcoholic beverages for the use of an obviously intoxicated person
Minnesota Statutes 340A.503 — Persons under 21; illegal acts	It is unlawful for any retail intoxicating liquor licensee to permit any person under the age of 21 years to drink alcoholic beverages on the licensed premises and for any person to sell, barter, furnish, or give alcoholic beverages to a person under 21 years of age; proof of age may be established only by a valid driver’s license or identification card issued by Minnesota, another state or a province of Canada, a valid military identification card, a valid United States passport, a valid instructional permit, or for a foreign national a valid passport; in a prosecution it is a defense for the defendant to prove by a preponderance of the evidence that the defendant reasonably and in good faith relied upon such proof of age
Minnesota Statutes 340A.415 — License revocation or suspension; civil penalty	On a finding that the license holder has failed to comply with an applicable statute, rule or ordinance relating to alcoholic beverages or a lawful license condition, the commissioner or the authority issuing a retail license may revoke the license, suspend the license for up to 60 days, impose a civil penalty of up to $2,000 for each violation, or impose any combination of these sanctions, after an opportunity for a hearing
Minnesota Statutes 340A.801 — Civil actions (Civil Damages Act)	A spouse, child, parent, guardian, employer, or other person injured in person, property, or means of support, or who incurs other pecuniary loss by an intoxicated person or by the intoxication of another person, has a right of action in the person’s own name for all damages sustained against a person who caused the intoxication of that person by illegally selling alcoholic beverages; actions are governed by comparative fault under section 604.01; the defense in section 340A.503, subdivision 6 applies; there shall be no recovery by any insurance company against any liquor vendor under subrogation clauses of first party motor vehicle coverages
Minnesota Statutes 340A.802 — Notice of injury; discovery before actions	A person who claims damages from a licensed retailer for an injury within the scope of section 340A.801 must give written notice to the licensee stating the time and date when and person to whom the alcoholic beverages were sold, the name and address of the person injured or whose property was damaged, and the approximate time, date and place of the injury; in the case of a claim for damages the notice must be served by the claimant’s attorney within 240 days of the date of entering an attorney-client relationship with the person in regard to the claim; claims for contribution or indemnity within 120 days after the injury or within 60 days after receiving written notice of a claim; no action for damage or for contribution or indemnity may be maintained unless the notice has been given; no action may be maintained under section 340A.801 unless commenced within two years after the injury
Minnesota Department of Public Safety — Alcohol and Gambling Enforcement Division, Alcohol	Responsibilities of the Alcohol Enforcement Unit include issuing alcohol licenses and permits including manufacturer, wholesaler, importer, farm winery, retail licenses and the retailers/buyers card, reviewing applications and approving retail licenses when applicable, pre-licensing background checks and education, and serving as the statewide repository for retail license records; resources include Minnesota liquor laws and rules and alcohol training
Minnesota.gov eLicense — Retailer’s (Buyer’s) Card for Liquor and Wine	Buyer’s Card (Retailers ID Card for Liquor or Wine); fees $20; period of issuance runs concurrent with the local license period, then renewed annually on that date; length of determination 30 days; rules 7515.0200; statutes 340A
Minnesota Statutes 322C.0201 — Formation of limited liability company; articles of organization	A limited liability company is formed when articles of organization have been filed with the secretary of state accompanied by a payment of $135
Minnesota Statutes 322C.0208 — Annual report for secretary of state	Each calendar year beginning in the calendar year following the year in which a limited liability company files articles of organization, the company must file with the secretary of state by December 31 an annual renewal; no fee is required to file an annual renewal; failing to file will result in an administrative termination of the limited liability company