Starting a service business in Minnesota

Form your business in Minnesota

You form a Minnesota LLC by filing articles of organization with the Secretary of State. The articles list the company name, the street address of the registered office (and the registered agent, if you use one), and the name and street address of each organizer. Minn. Stat. 322C.0201 says the LLC exists once the articles are filed with a payment of $135, the amount written in the 2025 Minnesota Statutes as checked in October 2026. A separate law, Minn. Stat. 5.14, lets the office add a $20 surcharge to any expedited transaction, so an online or walk-in filing can cost more than the statutory base. The office's website blocked our automated checks, so confirm the exact total on the Secretary of State's fee page before you pay.

Ongoing state filings

Every Minnesota LLC files an annual renewal with the Secretary of State by December 31 of each calendar year, starting the year after the articles were filed. Under Minn. Stat. 322C.0208 the renewal carries no fee. Skipping it is costly anyway: the statute warns that a missed renewal leads to administrative termination of the company. Put a December reminder in your calendar the day you form.

Using a business name (DBA)

If you trade under any name that does not show the true name of every owner, Minnesota requires a certificate of assumed name filed with the Secretary of State (Minn. Stat. 333.01). After filing, the certificate must be published in a qualified newspaper in the county of your principal or registered office for two successive issues. The Secretary of State charges $30 per assumed name filing under Minn. Stat. 333.055 (2025 statutes, checked October 2026). The certificate stays active only if you file a free annual renewal each calendar year; a lapsed name can be reinstated with a $25 fee. The newspaper charges its own rate for the notice, so ask the paper for a quote.

Not sure whether you need an LLC at all? Read LLC vs sole proprietor for contractors, then get your free EIN from the IRS.

Licensing for service trades

The Department of Labor and Industry licenses residential building contractors and remodelers. Per DLI, anyone who contracts directly with the owner of a one to four unit home to do work in more than one of its eight special skills (excavation, masonry and concrete, carpentry, interior finishing, exterior finishing, drywall and plaster, roofing, general installation) needs that license. Roofers need their own residential roofer license, which covers roofing only. Contractors with under $15,000 in gross annual residential receipts can apply for a Certificate of Exemption in place of the license. DLI also licenses electrical contractors and electricians, and plumbing contractors, who must carry a $25,000 bond, liability insurance and workers' comp. For heating, cooling, gas and refrigeration work, DLI says there is no state license, but the business must file a $25,000 mechanical contractor bond, and many cities require their own license or competency card. Anyone spraying pesticides for hire, including weed control on lawns, needs a commercial applicator license from the Minnesota Department of Agriculture. Single-trade work like window cleaning or mowing may still need a city license, so ask the city where you work.

• Minnesota DLI: Residential contractor licensing: Residential building contractors, remodelers and roofers; Certificate of Exemption under $15,000 in residential receipts
• Minnesota DLI: Electrical licensing: Electrical contractors, electricians, satellite installers and sign contractors
• Minnesota DLI: Plumbing contractor licensing basics: Plumbing contractors: license, $25,000 bond, liability and work comp proof
• Minnesota DLI: Mechanical contractor bond: HVAC, gas, fuel burning and refrigeration contractors: $25,000 bond filed with DLI, local comp cards
• Minnesota Department of Agriculture: Pesticide applicator licensing: Commercial pesticide applicators working for hire

Workers' compensation

DLI states plainly that there is no minimum number of employees before coverage is required, so even one part-time worker generally triggers it. Minors, part-timers and noncitizen workers all count as employees. You buy a policy through an insurance agent or directly from an insurer. If carriers turn you down, a written refusal qualifies you for the state's assigned risk plan, run through the Minnesota Workers' Compensation Insurers Association. Self-insurance is the third route DLI lists. Licensed plumbing contractors also have to file proof of coverage with DLI as part of the license.

More on coverage: business insurance for contractors.

Sales tax on services

Check this before you set prices. The Department of Revenue lists building cleaning and maintenance as taxable, and its guidance says that covers interior and exterior cleaning of residential buildings, homes and apartments, with window washing, carpet cleaning, junk removal, leaf removal, and disinfecting, exterminating and pest control on the list. Lawn and garden maintenance is also taxable: mowing and trimming, aerating, raking, spring and fall cleanup, weed spraying, and picking up pet droppings. Two big exceptions: snow plowing and shoveling are not taxable, and lawn work that is part of an initial landscaping project under a construction contract is not taxable. Revenue says you must register for a Minnesota Tax ID Number and a sales and use tax account before your first taxable sale, online through Business Tax Registration or by phone at 651-282-5225.

Recording business calls in Minnesota

Minnesota is a one-party consent state. Minn. Stat. 626A.02 allows a private person to record a call they take part in, or one where a party has consented, as long as the purpose is not criminal or tortious. If your phone system records callers in other states, use an announcement anyway, since some states require every party's consent.

See our guide to recording business calls before you turn on call recording or an AI receptionist.

How the seasons shape the work

Minnesota work swings hard with the calendar. Lawn crews have a short, crowded season from late April to October, and the first hard freeze ends exterior washing and painting for months. Snow and ice drive winter revenue for plowing, roof raking and ice dam calls, while frozen pipes and furnace failures push plumbing and heating into emergency mode on the coldest nights. Many owners pair a summer service with a winter one to keep crews busy year round.

Plan for the newspaper notice

The assumed name publication catches many new Minnesota owners off guard. File the certificate with the Secretary of State first, then contact a qualified newspaper in your county and ask it to run the notice in two successive issues. Keep the newspaper's proof of publication with your business records. If you form an LLC and sell under the LLC's exact legal name, you avoid the assumed name step entirely, so pick your brand before you file the articles.

Price sales tax into recurring plans

Because Minnesota taxes mowing, pet waste pickup and residential cleaning, a weekly plan price has to state whether tax is included. Set up your invoicing so tax shows as its own line, and track snow plowing separately because it is not taxable. The registration form also asks which local or special local taxes apply to your business, so have your service area handy when you sign up.

Then set up the back end that gets you hired

The paperwork makes you legal. Customers still have to find you, reach you and pay you. Before your first job, set up a business phone number, email on your own domain, a Google Business Profile, a simple website, and a way to send quotes and take card payments. The launch checklist lays out the order.

Minnesota questions