Starting a house cleaning business in Minnesota: taxed tasks, sick time and Paid Leave

Minnesota is one of the few states that has written down what a house cleaner may and may not charge tax on, task by task. That is the main reason to read a Minnesota-specific page before you price your first job. The general steps for starting a cleaning company are in the national cleaning startup guide, and statewide basics are on the Minnesota startup page. This page covers what changes for a house cleaning business in the state.

Which cleaning tasks Minnesota taxes

The Minnesota Department of Revenue's guide to building cleaning and maintenance, last updated June 29, 2026, says the category covers interior and exterior cleaning of commercial and residential buildings, homes and apartments. It does not cover repairs. The taxable list includes carpet cleaning, duct cleaning, floor cleaning, vacuuming and waxing, gutter cleaning, janitorial services, pressure washing a building, restroom cleaning and sanitizing, window washing, and wall and woodwork cleaning. Disinfecting and pest control are taxable too.

The same guide has a nontaxable list, and one line on it describes household chores: washing dishes, dusting knick-knacks, making beds, picking up, and room straightening. Other nontaxable items include painting and wallpapering, repairs to real property, snow plowing, septic tank pumping and sewer and drain cleaning.

A normal cleaning visit mixes both lists, and the guide's rule for that case is blunt. Contracts that include taxable and nontaxable services are taxed on the full amount unless the nontaxable services are separately stated. The guide does not explain how to split a flat visit price, so ask the department how it expects you to allocate time or price before you quote. Do not guess on a recurring contract, because the mistake repeats every week. Local sales taxes can apply on top in some cities and counties, and the guide points to separate local tax guides.

One more detail from the department: building cleaning performed by employees for their own employer is not taxable, and neither are services between entities where one owns at least 80 percent of the other. For tax registration, Revenue says you need a Minnesota Tax ID Number and a sales and use tax account before your first taxable sale, registered online or by phone at 651-282-5225. See how other states handle this in the home services sales tax table.

Earned sick and safe time applies to your cleaners

The Department of Labor and Industry (DLI) explains Minnesota's earned sick and safe time law. Employees earn one hour for every 30 hours worked, up to 48 hours a year unless the employer agrees to more. Employees who are expected to work at least 80 hours a year in Minnesota for the employer, and who are not independent contractors, are covered. The leave is paid at the employee's regular base rate. You must give each employee a notice at the start of employment, and tell them their available and used hours at the end of each pay period. Minneapolis and St. Paul have their own ordinances, and employers have to follow whichever provisions favor the employee. Part-time cleaners on a weekly route reach 80 hours quickly, so build the accrual into your payroll setup from the first week.

Paid Leave premiums come out of payroll

Minnesota Paid Leave premiums are funded through payroll. According to the state's small employer designation sheet, the 2026 rate for most employers is 0.88 percent of wages up to the Social Security wage base, currently $185,000. Employers may deduct up to 0.44 percent from employees. A small employer pays a lower 0.66 percent if it has 30 or fewer employees in each quarter of the basis period and an average employee wage at or below 150 percent of the statewide average wage, which the sheet calculates as $27,745.88 per quarter in covered wages per employee. The sheet adds a third test: you must have met wage detail reporting requirements throughout the basis period, so file your quarterly wage reports on time. A crew paid near minimum wage sits far below that wage line.

Workers' comp has no minimum headcount

DLI states that there is no minimum number of employees before insurance is required, and an employer with one part-time employee generally must provide coverage. Employers that fail to insure may face penalties, and DLI's Special Compensation Fund unit can refer cases for civil penalty action. DLI says you can buy through an agent or insurer, or use the state's assigned risk plan if carriers turn you down in writing. Our first employee guide covers the order of steps.

Wages matter too. DLI lists the statewide minimum wage at $11.41 an hour in 2026 and $11.87 on January 1, 2027, and says Minneapolis and St. Paul have their own ordinances that may require a higher rate. If you clean in either city, confirm which rate applies to the hours your crew works there.

Naming the company: assumed names and the newspaper

Minnesota LLC articles are filed with the Secretary of State, and under Minn. Stat. 322C.0201 the filing carries a $135 payment, the figure in the 2025 statutes. An annual renewal is due by December 31 each year and carries no fee under Minn. Stat. 322C.0208, but a missed renewal can lead to administrative termination. If you sell as "Sparkle Home Care" and your LLC is named something else, you need a certificate of assumed name. Under Minn. Stat. 333.01 it must be published after filing in a qualified newspaper in the county of your principal or registered office, for two successive issues. The filing fee is $30 under Minn. Stat. 333.055, renewal is free each year, and reinstating a lapsed name is $25. The newspaper bills you separately. Selling under the exact legal name of the LLC skips the whole step. Compare entity costs in the LLC fee comparison.

First steps in order

1. Choose a company name that matches your LLC, or budget for the assumed name filing and the newspaper notice.
2. Register for a Minnesota Tax ID and sales tax account, then call Revenue about splitting taxable and nontaxable work on a flat visit price.
3. Get a workers' comp quote before the first hire.
4. Set up payroll to track earned sick and safe time and Paid Leave premiums.
5. Price visits using the house cleaning pricing guide, with tax shown as its own line.

Confirm with the state

This page is general information as of October 2026, read from the Minnesota sources listed below. It is not legal or tax advice. Tax guides, wage rates and premium rates change each year, and the Secretary of State's site blocked automated checking of its fee page, so confirm the filing total there. Ask the named agency before you act.

Frequently asked questions