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Can I sell products or services online without violating e-commerce laws in Minnesota? What are the requirements?

To sell products or services online in Minnesota, you must comply with the state’s e-commerce laws. Here are the requirements:

Sales Tax

You must collect sales tax on all taxable sales made to customers in Minnesota. The current sales tax rate is 6.875% [1.1].

Consumer Protection

You must comply with Minnesota’s consumer protection laws, which prohibit unfair and fraudulent trade practices [1.1][1.3]. For example, you cannot mislead consumers about the quality, ingredients, or origin of your products [1.1].

Food Sales

If you plan to sell food products online, you must comply with Minnesota’s food licensing laws [3.1][3.2]. Cottage food businesses are exempt from licensing requirements if they meet certain criteria [3.2].

Tobacco Sales

If you plan to sell tobacco products online, you must comply with Minnesota’s tobacco licensing laws [4.1][1.5].

License and Registration

You may need to obtain a license or register your business with the state of Minnesota. The requirements vary depending on the type of business you operate [4.1].

Sales Outside Ordinary Channels of Business

If you sell cigarettes, you cannot use the invoice cost or the actual cost of any cigarettes purchased at a forced, bankrupt, or closeout sale, or other sale outside of the ordinary channels of trade, including purchases from the wholesale distributors who do not have their principal place of business within the state of Minnesota [1.2].

Refunds

If you sell goods to consumers, you must provide cash refunds for goods that are acceptable for return unless you comply with certain requirements [2.3].

If you need more specific information about e-commerce laws in Minnesota, we recommend consulting with a licensed attorney or contacting the Minnesota Department of Revenue.

Source(s):
Jurisdiction

Minnesota