Why incorporate in Minnesota?

Business Information & Rankings

• Minnesota ranked 3rd on the Work Environment Index. (Political Economy Research Institute, 2005)
• Minnesota ranked 8th in the State Technology and Science Index (Millken Foundation, 2005)
• Minnesota is headquarters for 19 Fortune 500 companies.
• Minnesota is typically one of the nation’s leaders in most important economic and social indicators.

Cost of Living Index

Crime Rate

Minnesota has the 19th lowest overall crime ranking in the U.S. (FBI, 2004)

Fees & Taxes

Business Inventory Tax
Business inventory is exempt.

Corporate Income Tax
Minnesota has a flat rate tax of 9.8%. Minnesota does not have a capital value tax. Unlike a corporate income tax which is imposed only on a business’ profits, a capital value tax is imposed regardless of whether a business is profitable or not.

Personal Income Tax
Minnesota’s personal income tax system consists of three separate brackets with a top rate of 7.85% starting at an income level of $61,460.

Personal Property Tax
Minnesota is one of the 38 states that collect property taxes at both the state and local levels. Most commercial and industrial property is assessed at 1.5% on the first $150,000 of market value and 2.0% of remainder.
No tax on intangible property.

State Sales and Use Tax
Base Rate: 6.5%
Machinery Rate: None

A refund for the tax on sales of capital equipment is imposed and collected at the general tax rate, and upon application by the purchaser, a refund will be paid to the purchaser.

Unemployment Insurance
Minnesota’s new employers’ rate is 2.88% for 1 year.