Start a Business in Minnesota
Costs, permits, taxes, and requirements for MN.
- Cost rank
- 28th of 50
- 97% of the national average · tied with 1 other state
- State income tax
- 5.35-9.85%
- Charged on top of federal income tax
- Sales tax
- 6.875%
- You collect it on taxable sales and remit it to the state
- LLC filing fee
- $155
- One-off, paid to the Secretary of State · 10th most expensive of 50 (median $100)
Where Minnesota sits on cost
Cheapest third to most expensive third, by startup cost index. Hover a state for its index and rank.
What's different in Minnesota
Winter takes months out of the year for anything done outdoors in Minnesota, and the businesses that do well either price the closed weeks into the open ones or run a second line of work through them. The Twin Cities hold an unusual concentration of large employers for a state this size, which supports a deep business-to-business market — but it also means procurement standards, insurance requirements and payment terms that a very small supplier has to be ready to meet. Employers here also pay into a state paid-leave programme, so payroll costs more than the headline wage and should be modelled that way from the first hire.
- The outdoor season is short
- Landscaping, paving and exterior trades earn in a compressed window and pay overheads all year.
- Selling to large employers
- The metro's corporate base is a real market, but it comes with vendor requirements and slow terms.
- Payroll carries a state programme
- Paid-leave contributions sit on top of wages; budget the loaded cost, not the hourly rate.
Business Guides for Minnesota
All 53, cheapest first. Ranges are what that business actually costs in MN.
Under $10K 21
- Notary Services $300 – $2,000
- Social Media Management $475 – $2,900
- Pet Sitting $485 – $2,910
- Web Design $475 – $4,850
- Dog Walking $485 – $4,850
- Cleaning Business $2,000 – $8,000
- Tutoring $475 – $9,700
- E-Commerce $485 – $9,700
- Window Cleaning $970 – $9,700
- Graphic Design $975 – $9,700
- Bookkeeping $1,950 – $9,700
- Handyman $2,000 – $10,000
- Personal Training $2,000 – $10,000
- Lawn Care $3,000 – $12,000
- House Painting $1,940 – $14,550
- Pool Cleaning $1,940 – $14,550
- Tax Preparation $1,950 – $14,550
- Auto Detailing $2,000 – $15,000
- Photography $3,000 – $15,000
- Pressure Washing $3,000 – $15,000
- Vending Machine $3,000 – $15,000
$10K – $50K 18
- Consulting $975 – $19,400
- Event Planning $1,950 – $19,400
- DJ Service $2,900 – $19,400
- Interior Design $1,940 – $24,250
- Carpet Cleaning $4,850 – $24,250
- Massage Therapy $4,850 – $24,250
- Mobile Spa $8,000 – $25,000
- Landscaping $5,000 – $30,000
- Wedding Photography $9,700 – $38,800
- Bakery $2,000 – $50,000
- Junk Removal $4,850 – $48,500
- Pest Control $9,700 – $48,500
- Pet Grooming $4,850 – $72,750
- Catering $9,700 – $72,750
- Florist $9,700 – $72,750
- Tree Service $9,700 – $72,750
- Electrician $14,550 – $72,750
- Plumbing $14,550 – $72,750
$50K and up 14
- Yoga Studio $14,550 – $97,000
- HVAC $19,400 – $97,000
- Moving Company $20,000 – $100,000
- Barber Shop $25,500 – $122,400
- Nail Salon $30,600 – $153,000
- Hair Salon $35,700 – $153,000
- Gym $51,000 – $153,000
- Food Truck $50,000 – $175,000
- Ice Cream Shop $48,500 – $291,000
- Coffee Shop $80,000 – $300,000
- Daycare $4,850 – $485,000
- Car Wash $48,500 – $485,000
- Laundromat $97,000 – $485,000
- Restaurant $178,500 – $510,000
Get a personalized cost estimate for Minnesota
Calculate CostsBusiness Requirements in Minnesota
Register Your Business
File with Minnesota Secretary of State. LLC fee: $155
Get Business License
Most cities require a general business license ($50-$300).
Get EIN
Free from IRS. Required for bank accounts and taxes.
Register for Sales Tax
State rate: 6.875%. Local taxes may apply.
Get Business Insurance
General liability protects from lawsuits. Often required by landlords.