How to Start a Cleaning Business in Minnesota: Complete Guide

Starting a cleaning business in Minnesota typically costs $1,000 to $5,000 depending on your business structure and insurance needs. Each state has different rules for registration, taxes, and workers' compensation. This guide covers everything you need to start a cleaning business in Minnesota, including filing fees, licenses, insurance, labor laws, and local tips.

Why Start a Cleaning Business in Minnesota?

Minnesota has a strong economy and a large metro area. The Twin Cities of Minneapolis and St. Paul have over 3.6 million people. That creates massive demand for cleaning services.

Residential cleaning services are not taxable in Minnesota. This makes billing simple. You do not need to collect sales tax from house cleaning clients.

Minnesota also has no annual renewal fee for a limited liability company. Once you pay the $155 filing fee, there is no yearly cost to maintain your company.

How Do You Choose a Business Structure?

You need to decide how to set up your business. Minnesota offers two main choices for cleaning companies.

Sole Proprietorship

This is the simplest way to start. You do not need to file with the state. Minnesota considers you a sole owner right away.

If you want a business name, file an assumed name certificate with the Secretary of State. The fee is $50.

The downside is you have no personal protection. If something goes wrong, your personal savings are at risk.

Limited Liability Company

This is the better choice for most cleaning businesses. It keeps your personal money separate from your business. If a client sues, your personal savings stay protected.

To form one in Minnesota, file Articles of Organization. You do this online through the Secretary of State website. The filing fee is $155.

Minnesota does not require an annual report or renewal fee. This is a big advantage. Once you file, there is no yearly cost to keep your company active.

How Do You Get an Employer Identification Number and Tax Accounts?

An Employer Identification Number is a free number from the federal government. You need it to open a business bank account. You also need it to file taxes and hire workers.

Apply for free at the Internal Revenue Service website. You get your number right away when you apply online.

Minnesota Income Tax

Minnesota has a state income tax. Rates range from 5.35 to 9.85 percent. This is one of the higher rates in the country.

Your cleaning business income passes through to your personal tax return. You may need to make quarterly estimated payments to the Minnesota Department of Revenue.

Cleaning Services and Sales Tax

Good news: residential cleaning services are not taxable in Minnesota. You do not need to collect sales tax when you clean homes.

This makes your billing much simpler. The price you quote is the price the client pays. No extra tax to calculate or collect.

Some commercial cleaning services may have different rules. Check with the Minnesota Department of Revenue if you plan to do commercial work.

What Licenses and Permits Do You Need?

Minnesota has no statewide business license. There is also no special cleaning license at the state level. This keeps things simple.

However, cities like Minneapolis and St. Paul require local business licenses. Requirements vary by where you are located.

Local Business Licenses

Minneapolis requires a city business license. St. Paul has its own requirements. Other suburbs may also require permits. Check with your city clerk.

Fees vary. Minneapolis business licenses can range from $50 to several hundred dollars depending on your business type.

No Sales Tax Permit Needed

Since residential cleaning is not taxable, you do not need a sales tax permit for house cleaning. If you also do taxable commercial work, you may need one for that part of your business.

What Insurance Do You Need?

Insurance protects you from one bad day ending your business. Minnesota requires some types of coverage. Here is what you need.

• General liability insurance — Covers property damage and injuries at a client's home or office. Costs $400 to $1,200 per year. Every cleaning business needs this
• Workers' compensation insurance — Required in Minnesota for all employers with one or more employees. You must get coverage before your first hire starts
• Surety bond — Protects clients if an employee steals something. Not required but highly recommended. Costs $100 to $500 per year
• Commercial auto insurance — Needed if you use a vehicle for business. Minnesota requires minimum liability coverage on all vehicles

For more details on each type of coverage, read our Cleaning Business Insurance Guide.

What Are Minnesota Labor Laws?

If you plan to hire workers, you need to follow Minnesota labor laws from day one.

Minimum Wage

Minnesota has two minimum wage rates. Large employers with annual revenue over $500,000 must pay $10.85 per hour. Small employers pay at least $8.85 per hour.

Most cleaning businesses qualify as large employers. Either way, most cleaning companies pay $14 to $20 per hour to attract good workers in the Twin Cities market.

Worker Classification

Minnesota is strict about worker classification. Cleaning workers who follow your schedule usually count as employees. Classifying them wrong leads to heavy fines.

When in doubt, hire them as employees. Minnesota actively audits businesses for misclassification.

Unemployment Insurance

When you hire employees, register for unemployment insurance. Register through the Minnesota Department of Employment and Economic Development. New employers pay a starting rate.

Paid Sick Leave

Minnesota requires employers to provide paid sick and safe time. Employees earn one hour for every 30 hours worked. This applies to all employers with one or more workers.

What Safety Rules Apply?

Minnesota has its own workplace safety program called Minnesota OSHA. It is run by the Department of Labor and Industry. The rules are similar to federal standards.

Hazard Communication

You must keep Safety Data Sheets for every cleaning chemical you use. Train your workers on each product they handle. Show them what to do if a spill happens.

Winter Safety

Minnesota winters are brutal. Temperatures can drop below zero for weeks. Workers travel between jobs in snow and ice.

Keep emergency kits in vehicles. Make sure your team has winter tires and warm clothing. Have a plan for extreme cold days.

How Do You Set Cleaning Prices in Minnesota?

Minnesota has a higher cost of living than most central states. The Twin Cities support premium rates. Smaller cities need more moderate prices.

Typical pricing ranges in Minnesota:

• Home cleaning (hourly) — $28 to $55 per hour
• Home cleaning (flat rate) — $130 to $320 for a standard 3-bedroom home
• Deep cleaning — $220 to $500 depending on home size
• Move-in or move-out cleaning — $250 to $550
• Office cleaning — $0.07 to $0.15 per square foot

Since there is no sales tax on residential cleaning, your quoted price is the final price. Use our Price Calculator to find the right rate for your area.

What Cleaning Niches Are Profitable in Minnesota?

Minnesota has cleaning niches that do especially well. The large metro area and seasonal weather create many options.

Twin Cities Luxury Home Cleaning

Wealthy suburbs like Edina, Minnetonka, and Eden Prairie have large homes. These families pay premium rates for quality cleaning. This is the highest-paying residential niche.

Mayo Clinic Area Cleaning

Rochester is home to the famous Mayo Clinic. High-income doctors and medical staff live here. They value quality cleaning and will pay well for it.

Lake Home and Cabin Cleaning

Minnesota has over 10,000 lakes. Many families own cabins and lake homes. These properties need seasonal opening and closing cleanings. Summer turnover cleaning for rentals pays well.

College Town Cleaning

The University of Minnesota and many smaller colleges create student housing demand. Move-out cleaning at the end of each semester is especially busy.

Corporate Office Cleaning

Minneapolis is home to many large companies. Target, Best Buy, 3M, and others have offices throughout the metro. Commercial cleaning contracts provide stable, long-term income.

How Do You Market a Cleaning Business in Minnesota?

Getting clients in Minnesota follows the same steps as most states. Here are strategies that work well.

Google Business Profile

Set up your profile with your city, services, and photos. Ask every happy client for a Google review. Most people search online first.

Nextdoor and Facebook Groups

Minnesota residents are active on Nextdoor. Join groups for your service area. Share helpful cleaning tips. Many Twin Cities neighborhoods have active online communities.

Property Manager Partnerships

The Twin Cities have a large rental market. Property managers need move-out cleaning between tenants. Offer them reliable service and special rates.

For a complete marketing plan, read our Marketing Your Cleaning Business guide and How to Get Cleaning Clients Fast.

How Much Does It Cost to Start in Minnesota?

Minnesota has a moderate startup cost. The no-annual-fee advantage saves you money every year.

• Limited liability company filing — $155 (one-time, no annual renewal fee)
• Assumed name certificate — $50 (if using a different business name)
• Local business license — $50 to $300 per year (varies by city)
• General liability insurance — $400 to $1,200 per year
• Workers' compensation insurance — Required once you hire (rates vary)
• Surety bond — $100 to $500 per year (recommended)
• Cleaning supplies and equipment — $200 to $500 to start
• Marketing (initial) — $100 to $500

What Is on Your Minnesota Startup Checklist?

Follow these steps in order. Complete each one before moving on.

1. Choose your business structure — Form a limited liability company at sos.state.mn.us ($155, no annual fee)
2. Get an Employer Identification Number — Apply free at irs.gov
3. Register with the Department of Revenue — Set up your state tax account
4. Open a business bank account — Keep personal and business money separate
5. Get your local business license — Check your city requirements
6. Buy general liability insurance — Get at least $1 million in coverage
7. Buy cleaning supplies — Start with the basics and upgrade as you grow
8. Set your prices — Use our Price Calculator (no sales tax on residential cleaning)
9. Set up your Google Business Profile — This is your most important marketing tool
10. Book your first clients — Tell friends, post on Nextdoor, reach out to property managers
11. Get workers' compensation before hiring — Required for even one employee
12. Set up paid sick leave tracking — Required for all Minnesota employers

What Are the Best Tips for Minnesota?

Here are practical tips for success in Minnesota.

• No sales tax means simpler billing — Your quoted price is the final price for residential cleaning. Clients love this clarity
• No annual renewal fee — Your limited liability company stays active without yearly payments. One less thing to track
• Budget for higher income tax — Minnesota has one of the higher state tax rates. Set aside money for quarterly payments
• Target wealthy Twin Cities suburbs — Edina, Minnetonka, and Eden Prairie pay top rates for quality cleaning
• Market spring cleaning hard — After Minnesota's long winters, every home needs a deep clean. This is your busiest season
• Offer lake cabin cleaning — Opening and closing cabins is a unique Minnesota niche
• Track paid sick leave — Minnesota requires it for all employers. Use software to track hours earned
• Use MaidProfit to manage bookings — Track jobs, invoices, and employee hours with one tool

What Are the Guides for Nearby States?

If you serve areas near the Minnesota border, these guides may help.

Where Do You Find Minnesota Government Resources?

Here is a complete list of every government website in this guide. Bookmark these for later.

What Other Guides Can Help Your Business?

These free guides cover topics every cleaning business owner needs. They work hand-in-hand with this state guide.

Start Your Minnesota Cleaning Business Today

Minnesota offers a large market, no sales tax on cleaning, and no annual company fees. The Twin Cities metro area alone has millions of potential clients.

Start by forming your limited liability company. Get your Employer Identification Number and register with the Department of Revenue. Buy insurance, check local licenses, and set your prices.

Then focus on getting clients through Google and local connections.

The wealthy suburbs, lake homes, and corporate offices create year-round demand. Every successful Minnesota cleaning company started with one owner and one first client. Take action today.