Minnesota is one of the most reliable states in the US to build a long-term service business. With a strong economy, high household income, and consistent demand for residential and commercial cleaning, many entrepreneurs are looking at how to start a cleaning business in Minnesota the right way.
From Minneapolis–St. Paul office buildings to suburban homes in Maple Grove, Edina, and Rochester, opportunities are everywhere. However, Minnesota is also known for strict tax rules, worker protections, and compliance requirements that can trip up new business owners.
This ultra-local guide explains how to start a cleaning business in Minnesota while staying compliant with state laws, local taxes, and operational realities.
(For national startup expenses, see:
The Cost to Start a Cleaning Business in the USA: The 2026 Complete Guide
Step 1: Minnesota Sales Tax on Cleaning Services
One of the biggest surprises when learning how to start a cleaning business in Minnesota is sales tax.
The Rule
In Minnesota, most residential and commercial cleaning services are taxable under the Minnesota Department of Revenue.
The Action
You must register for a Minnesota Sales and Use Tax ID before charging customers.
The Rate
- State rate: 6.875%
- Local rates: Can push totals above 8% depending on the city (Minneapolis, St. Paul, and transit zones)
If you charge $150 for a house clean in Minneapolis, your invoice must include the appropriate sales tax—otherwise, you’ll owe it later.
⚠️ Warning: If you fail to collect sales tax, Minnesota will still demand payment—plus interest and penalties.
Step 2: Registering Your Business (LLC in Minnesota)
Forming an LLC
Most owners starting a cleaning company choose an LLC for liability protection.
- Cost: $155 online / $135 by mail
- Where: Minnesota Secretary of State
Annual Renewal
Minnesota requires annual renewals for LLCs.
- Cost: Free (on time)
- Deadline: December 31 every year
- Penalty for missing: Administrative dissolution
Even if you make $0, you must file.
Step 3: DBA & Local Rules
If you operate under a name different from your legal LLC name, you must file an Assumed Name (DBA).
- Filed with the Minnesota Secretary of State
Local City Rules
Some Minnesota cities require:
- Local business licenses
- Environmental compliance for chemicals
- Wastewater disposal approvals
Always check city websites (e.g., Minneapolis or St. Paul) before starting commercial work.
Step 4: Minnesota Logistics & Weather Reality
When planning how to start a cleaning business in Minnesota, logistics matter.
Winter Impact
- Snowstorms cause cancellations
- Travel time increases dramatically
- Crews must be routed efficiently
Urban vs Suburban Spread
- Minneapolis–St. Paul metro traffic can double job times
- Suburban routes (Burnsville, Blaine, Woodbury) are more profitable if clustered
🚗 Strategy: Focus on tight service zones. Avoid crossing the metro multiple times per day.
Step 5: Insurance & Employment Laws
General Liability Insurance
Strongly recommended—especially for high-end homes and commercial contracts.
Workers’ Compensation
Mandatory in Minnesota if you have employees.
👉 Minnesota Department of Labor & Industry
Minnesota is strict about worker classification. Misclassifying employees as contractors can lead to heavy fines.
Why ProCleanerUS Works for Minnesota Cleaning Companies
If you’re serious about how to start a cleaning business in Minnesota, software matters.
ProCleanerUS is built for compliance-heavy states like Minnesota:
- ✅ Automatic Sales Tax on Invoices – Never undercharge again
- ✅ Route Optimisation – Critical during winter traffic
- ✅ Offline Mode – Works in basements, parking garages, and low-signal areas
- ✅ Employee-Friendly Mobile App – Keeps crews productive year-round
Ready to Build a Profitable Minnesota Cleaning Business?
Minnesota rewards businesses that are organised, compliant, and efficient. If you’re committed to doing things right, the opportunity is massive.
👉 Start Your 7 Days Free Trial today and discover how ProCleanerUS builds lean, profitable cleaning companies