How Much Does It Cost to Start a Business in Minnesota?
Last updated: May 2026
Minnesota Business Overview
LLC Filing Fee
$155
Sales Tax Rate
6.9%
Minimum Wage
$10.85/hr
Cost of Living Index
93.6
Workers Comp
Required
Annual Report Fee
$0
Starting a Business in Minnesota
Minnesota businesses register with the Secretary of State. The state has a comprehensive licensing database with thousands of occupation-specific licenses.
Minnesota has a graduated income tax with rates from 5.35% to 9.85% — one of the highest top rates in the nation. Corporate income tax is 9.8%.
Minnesota's strong economy and highly educated workforce support professional services businesses. The Twin Cities metro offers a large consumer market with above-average household incomes.
For official formation documents, visit the Minnesota Secretary of State.
Startup Costs for 100 Business Types in Minnesota
The table below shows estimated startup costs for every major business type, adjusted for Minnesota’s cost of living index of 93.6. Click any column header to sort. Click a business name to see full cost breakdowns, calculator, and licensing requirements.
| Accounting Firm | Professional Services | $6,580 | $18,800 | $43,240 |
| Airbnb & Vacation Rental Business | Real Estate | $10,340 | $28,200 | $84,600 |
| Ambulance Service | Transportation & Logistics | $75,200 | $188,000 | $470,000 |
| App Development Company | Tech & Online | $9,400 | $28,200 | $75,200 |
| Architecture Firm | Professional Services | $18,800 | $51,700 | $122,200 |
| Auto Detailing Business | Automotive | $4,700 | $28,200 | $94,000 |
| Auto Repair Shop | Automotive | $70,500 | $188,000 | $470,000 |
| Bakery | Food & Beverage | $18,800 | $89,300 | $282,000 |
| Bar & Nightclub | Food & Beverage | $94,000 | $329,000 | $799,000 |
| Barbershop | Beauty & Personal Care | $14,100 | $61,100 | $164,500 |
| Beauty Supply Store | Beauty & Personal Care | $28,200 | $94,000 | $282,000 |
| Bookstore | Retail | $23,500 | $94,000 | $282,000 |
| Brewery / Microbrewery | Food & Beverage | $235,000 | $376,000 | $1,410,000 |
| Cannabis Dispensary | Specialty & Regulated | $117,030 | $312,080 | $1,170,300 |
| Car Wash | Automotive | $117,030 | $511,360 | $1,460,760 |
| Carpentry & Woodworking Shop | Construction & Trades | $9,870 | $26,320 | $65,800 |
| Catering Business | Food & Beverage | $11,280 | $49,820 | $122,200 |
| Chiropractic Office | Health & Wellness | $94,000 | $112,800 | $282,000 |
| Cleaning Business | Home Services | $1,410 | $10,340 | $34,780 |
| Clothing Boutique | Retail | $28,200 | $94,000 | $282,000 |
| Coffee Shop | Food & Beverage | $56,400 | $112,800 | $329,000 |
| Concrete Business | Construction & Trades | $23,500 | $61,100 | $141,000 |
| Consulting Business | Professional Services | $1,880 | $8,460 | $24,440 |
| Convenience Store | Retail | $47,000 | $263,200 | $705,000 |
| Courier & Delivery Service | Transportation & Logistics | $7,520 | $20,680 | $51,700 |
| Cybersecurity Firm | Tech & Online | $18,800 | $51,700 | $141,000 |
| Dance Studio | Childcare & Education | $18,800 | $75,200 | $235,000 |
| Daycare Center | Childcare & Education | $56,400 | $169,200 | $470,000 |
| Demolition Company | Construction & Trades | $28,200 | $75,200 | $188,000 |
| Dental Practice | Health & Wellness | $329,000 | $470,000 | $940,000 |
| Digital Marketing Agency | Tech & Online | $3,760 | $11,280 | $30,080 |
| E-Commerce Store | Tech & Online | $4,700 | $14,100 | $47,000 |
| Electrical Business | Home Services | $14,100 | $51,700 | $150,400 |
| Esthetics & Skincare Business | Beauty & Personal Care | $7,520 | $37,600 | $112,800 |
| Excavation Company | Construction & Trades | $47,000 | $122,200 | $329,000 |
| Financial Planning Practice | Professional Services | $18,800 | $51,700 | $122,200 |
| Flower Shop | Retail | $18,800 | $70,500 | $188,000 |
| Food Delivery Service | Food & Beverage | $9,400 | $48,880 | $122,200 |
| Food Processing Business | Food & Beverage | $188,000 | $235,000 | $705,000 |
| Food Truck | Food & Beverage | $42,300 | $112,800 | $188,000 |
| Freight Brokerage | Transportation & Logistics | $15,040 | $33,840 | $75,200 |
| Furniture Store | Retail | $47,000 | $188,000 | $564,000 |
| General Contracting Business | Construction & Trades | $18,800 | $51,700 | $122,200 |
| Ghost Kitchen | Food & Beverage | $18,800 | $56,400 | $141,000 |
| Gift Shop | Retail | $18,800 | $65,800 | $188,000 |
| Gym & Fitness Center | Health & Wellness | $47,000 | $235,000 | $940,000 |
| Hair Salon | Beauty & Personal Care | $14,100 | $70,500 | $235,000 |
| Handyman Business | Home Services | $1,880 | $9,400 | $31,020 |
| Home Health Care Agency | Health & Wellness | $37,600 | $122,200 | $282,000 |
| HVAC Business | Home Services | $18,800 | $65,800 | $188,000 |
| Ice Cream Shop | Food & Beverage | $18,800 | $70,500 | $188,000 |
| Insurance Agency | Professional Services | $14,100 | $37,600 | $84,600 |
| IT Services Business | Tech & Online | $14,100 | $37,600 | $94,000 |
| Juice Bar & Smoothie Shop | Food & Beverage | $23,500 | $84,600 | $235,000 |
| Landscaping Business | Home Services | $9,400 | $37,600 | $112,800 |
| Laundromat | Real Estate | $94,000 | $235,000 | $564,000 |
| Law Firm | Professional Services | $11,280 | $31,960 | $76,140 |
| Limousine & Car Service | Transportation & Logistics | $37,600 | $84,600 | $206,800 |
| Liquor Store | Retail | $47,000 | $169,200 | $470,000 |
| Marketing Agency | Professional Services | $4,700 | $16,920 | $47,000 |
| Martial Arts Studio | Childcare & Education | $18,800 | $65,800 | $188,000 |
| Meal Prep Business | Food & Beverage | $18,800 | $61,100 | $188,000 |
| Med Spa | Health & Wellness | $94,000 | $329,000 | $940,000 |
| Medical Practice | Health & Wellness | $141,000 | $376,000 | $940,000 |
| Mental Health Practice | Health & Wellness | $14,100 | $47,000 | $141,000 |
| Moving Company | Home Services | $28,200 | $94,000 | $282,000 |
| Music School | Childcare & Education | $9,400 | $47,000 | $141,000 |
| Nail Salon | Beauty & Personal Care | $18,800 | $84,600 | $235,000 |
| Painting Business | Home Services | $4,700 | $23,500 | $75,200 |
| Personal Training Business | Health & Wellness | $4,700 | $23,500 | $94,000 |
| Pest Control Business | Home Services | $9,400 | $37,600 | $112,800 |
| Pet Store | Retail | $28,200 | $94,000 | $282,000 |
| Pharmacy | Health & Wellness | $235,000 | $376,000 | $940,000 |
| Physical Therapy Clinic | Health & Wellness | $56,400 | $169,200 | $423,000 |
| Pizza Shop | Food & Beverage | $70,500 | $164,500 | $376,000 |
| Plumbing Business | Home Services | $14,100 | $47,000 | $141,000 |
| Podcast Production Company | Tech & Online | $1,880 | $5,640 | $16,920 |
| Preschool | Childcare & Education | $47,000 | $141,000 | $376,000 |
| Property Management Company | Real Estate | $9,870 | $22,560 | $51,700 |
| Real Estate Agency | Professional Services | $9,400 | $26,320 | $65,800 |
| Real Estate Investing & Rental Business | Real Estate | $23,500 | $70,500 | $235,000 |
| Restaurant | Food & Beverage | $164,500 | $352,500 | $705,000 |
| Roofing Company | Home Services | $14,100 | $56,400 | $169,200 |
| SaaS Company | Tech & Online | $18,800 | $56,400 | $188,000 |
| Spa & Massage Therapy | Health & Wellness | $9,400 | $65,800 | $235,000 |
| Staffing Agency | Professional Services | $18,800 | $51,700 | $141,000 |
| Storage Unit Facility | Real Estate | $188,000 | $564,000 | $1,880,000 |
| Tattoo Shop | Beauty & Personal Care | $18,800 | $55,460 | $188,000 |
| Tax Preparation Business | Professional Services | $3,290 | $9,400 | $25,380 |
| Thrift Store | Retail | $18,800 | $70,500 | $188,000 |
| Tire Shop | Automotive | $47,000 | $141,000 | $376,000 |
| Towing Company | Automotive | $47,000 | $141,000 | $376,000 |
| Trucking Company | Transportation & Logistics | $28,200 | $75,200 | $188,000 |
| Tutoring Business | Childcare & Education | $1,880 | $22,560 | $94,000 |
| Used Car Dealership | Automotive | $47,000 | $188,000 | $564,000 |
| Vape Shop | Retail | $23,500 | $70,500 | $188,000 |
| Web Development Agency | Tech & Online | $3,290 | $11,280 | $31,020 |
| Welding Business | Construction & Trades | $14,100 | $37,600 | $94,000 |
| Winery | Food & Beverage | $470,000 | $716,280 | $2,820,000 |
| Yoga Studio | Health & Wellness | $14,100 | $75,200 | $188,000 |
Most Popular Business Types in Minnesota
Restaurant
Food & Beverage
$164,500 – $705,000
Cleaning Business
Home Services
$1,410 – $34,780
Landscaping Business
Home Services
$9,400 – $112,800
Accounting Firm
Professional Services
$6,580 – $43,240
Gym & Fitness Center
Health & Wellness
$47,000 – $940,000
Daycare Center
Childcare & Education
$56,400 – $470,000
Licenses & Permits in Minnesota
General Business License
Minnesota does not have a statewide general business license. Businesses must register their entity with the Minnesota Secretary of State and register with the Minnesota Department of Revenue for sales and use tax and withholding tax purposes. Some Minnesota cities require local business licenses, though this varies by municipality. Minneapolis and Saint Paul have their own business licensing requirements. Many business types are regulated through specific licensing programs at the state level.
Industry-Specific Licenses
- Food Handler License — Minnesota Department of Agriculture or Local Health DepartmentCost: Varies — contact agency • Renewal: Annual
- Residential Building Contractor License — Minnesota Department of Labor and IndustryCost: Varies — contact agency • Renewal: Annual
- Cosmetology Salon License — Minnesota Department of Labor and Industry — Board of Cosmetologist ExaminersCost: Varies — contact agency • Renewal: Annual
- Real Estate Broker License — Minnesota Department of Commerce — Real EstateCost: Varies — contact agency • Renewal: Annual
- Child Care Center License — Minnesota Department of Human Services — Child Care LicensingCost: Varies — contact agency • Renewal: Annual
- On-Sale Intoxicating Liquor License — Minnesota Department of Public Safety — Alcohol and Gambling Enforcement or Local AuthorityCost: Varies — contact agency • Renewal: Annual
- Cannabis Retailer License — Minnesota Office of Cannabis ManagementCost: Varies — contact agency • Renewal: Annual
- Pesticide Business License — Minnesota Department of AgricultureCost: Varies — contact agency • Renewal: Annual
Home-Based Business Rules
Minnesota municipalities regulate home-based businesses through local zoning ordinances. Minneapolis allows home occupations in all residential zones with restrictions on customer visits, signage, and deliveries. Saint Paul has similar home occupation rules. Minnesota's rural areas are generally very accommodating of home-based businesses. The state's Cottage Food Law specifically supports home-based food production and direct consumer sales.
Minnesota Business Resources
SBA District Office
Minnesota SBA District Office — Minneapolis
Secretary of State
https://www.sos.state.mn.us/business-liensZoning Information
Minnesota municipalities control zoning. Minneapolis and St. Paul have active planning departments with form-based and use-based commercial zoning codes.
Health Department Notes
Food service establishments need a license from the Minnesota Department of Health or local licensing jurisdiction. The state has detailed food handler and manager certification requirements.
Workers Compensation
Required for virtually all employers. Minnesota has a highly regulated workers comp system with mandatory coverage provisions.