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Start a Business in Minnesota

Costs, permits, taxes, and requirements for MN.

Cost Index

97%

3% below avg

Income Tax

5.35-9.85%

Sales Tax

6.875%

LLC Fee

$155

Business Guides for Minnesota

Cleaning Business

$1,900 - $9,700

Lawn Care

$2,900 - $19,400

Pressure Washing

$2,900 - $19,400

Food Truck

$48,500 - $194,000

Photography

$1,900 - $29,100

Bakery

$19,400 - $145,500

Restaurant

$169,800 - $727,500

Coffee Shop

$77,600 - $339,500

Catering

$9,700 - $72,800

Landscaping

$4,900 - $48,500

Handyman

$1,900 - $9,700

Pool Cleaning

$1,900 - $14,600

Pest Control

$9,700 - $48,500

Carpet Cleaning

$4,900 - $24,300

Window Cleaning

$1,000 - $9,700

Junk Removal

$4,900 - $48,500

Moving Company

$9,700 - $97,000

HVAC

$19,400 - $97,000

Plumbing

$14,600 - $72,800

Electrician

$14,600 - $72,800

Auto Detailing

$4,900 - $145,500

Car Wash

$48,500 - $485,000

Pet Grooming

$4,900 - $72,800

Dog Walking

$500 - $4,900

Barber Shop

$24,300 - $145,500

Hair Salon

$48,500 - $242,500

Nail Salon

$38,800 - $194,000

Mobile Spa

$4,900 - $29,100

Bookkeeping

$1,900 - $14,600

Tax Preparation

$2,900 - $19,400

Notary Services

$500 - $4,900

Consulting

$1,000 - $19,400

Event Planning

$4,900 - $29,100

DJ Service

$2,900 - $24,300

Wedding Photography

$4,900 - $29,100

Web Design

$1,000 - $9,700

Graphic Design

$1,000 - $9,700

Social Media Management

$500 - $4,900

Personal Training

$1,900 - $48,500

Gym

$48,500 - $485,000

Tutoring

$500 - $4,900

Daycare

$48,500 - $485,000

Vending Machine

$2,900 - $29,100

Massage Therapy

$4,900 - $48,500

Yoga Studio

$14,600 - $97,000

Laundromat

$97,000 - $485,000

Florist

$9,700 - $48,500

Ice Cream Shop

$19,400 - $97,000

House Painting

$1,900 - $14,600

Tree Service

$9,700 - $48,500

Interior Design

$1,900 - $14,600

E-Commerce

$500 - $9,700

Pet Sitting

$500 - $2,900

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Business Requirements in Minnesota

1

Register Your Business

File with Minnesota Secretary of State. LLC fee: $155

2

Get Business License

Most cities require a general business license ($50-$300).

3

Get EIN

Free from IRS. Required for bank accounts and taxes.

4

Register for Sales Tax

State rate: 6.875%. Local taxes may apply.

5

Get Business Insurance

General liability protects from lawsuits. Often required by landlords.

Frequently Asked Questions

How much does it cost to start a business in Minnesota?
Startup costs in Minnesota are 3% lower than the national average. LLC filing costs $155, plus business license ($50-$300). Total varies by business type.
Does Minnesota have income tax?
Minnesota has a state income tax rate of 5.35-9.85%.
What is the sales tax in Minnesota?
The state sales tax in Minnesota is 6.875%. Local taxes may apply.
How do I form an LLC in Minnesota?
File Articles of Organization with the Secretary of State (fee: $155). You'll also need an Operating Agreement and EIN from the IRS.

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