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
|For St. Cloud, MN (2005):||Index Score|
|Misc. Goods & Services:||104.6|
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.
Minnesota’s new employers’ rate is 2.88% for 1 year.