You should call a business lawyer there in Sandstone, MN. Also, there are other organizations that might give you advice about starting up a business, such as the Small Business Administration, http://www.business.gov/, SCORE (http://www.score.org/index.html), etc. It might be a good idea to get licenses from your State, County, and City, if applicable. In particular, http://www.business.gov/states/minnesota/ has a good guide to what you need to know. Good luck.
[If this information has been helpful, please indicate below by pointing and clicking on the "thumbs up" symbol. Please note: I'm only licensed to practice law in the State of Washington. This communication does not constitute legal advice, nor does it form an attorney-client relationship.]
A license might be required specifically because of what you are selling or because you are doing so in a particular municipality that requires licensing.
There are many things to consider when starting a business such as whether the name is available and can it be protected, do you want to incorporate, are you allowed to operate a business in a residential area (if that's what you are doing), contracts with vendors, etc.
A great place to start is with the Guide to Starting a Business in Minnesota which I've linked to below.
This is general information and does not form an attorney client privilege. Consulting an attorney is the best route. I offer short free initial consultations.
P.S. I'm originally from the Sandstone area.
There are many things you will need to know and do before starting even a home based business. You can consult with a business attorney in your state (he or she can help you in structuring you business to limit your personal liability if need be) and research the matter on your own. There are many resources out there for you. SBA has some great resources on their new site at www.sba.gov. Also check out this link http://www.business.gov/states/minnesota/ for your state.
You should also consult a CPA concerning business structure and tax implications.
Without knowing exactly what type of business you are engaged in, I am unable to answer the question. Many internet businesses do not need specific licenses (e.g., either zoning or State licenses); however, some may need specific licenses. As another author noted, you may want to consider incorporating (if you haven't done so already). Additionally, you may have certain insurance-related issues. For instance, depending on what type of business you are running, your home-owners insurance may not cover such claims.
Nothing in this comment constitutes legal adivce nor establishes an attorney-client relationship.