How to Start a Cleaning Business in Minnesota (2026)

Last updated: February 25, 2026

Starting a cleaning service in Minnesota has a low barrier to entry – there’s no state-level cleaning license required. However, Minnesota is one of the states that charges sales tax on both residential and commercial cleaning services at 6.875% (plus local additions). LLC formation costs just $155 online with free annual renewals, making the business setup very affordable. Workers’ compensation is mandatory from your very first employee, and Minnesota’s new Earned Sick and Safe Time (ESST) law requires paid sick leave for all employers. The state’s Employee Right-to-Know program also requires annual chemical safety training – more stringent than federal OSHA. This guide covers every requirement from official Minnesota sources.

Cleaning Service Requirements in Minnesota at a Glance

Requirement	Agency	Cost	Timeline
LLC Formation (Articles of Organization)	Secretary of State	$155 (online)	3-5 business days
Assumed Name (DBA)	Secretary of State	$50 (online) + newspaper publication	1-2 weeks
Sales & Use Tax Registration	Dept. of Revenue	Free	Immediate
Workers’ Compensation Insurance	DLI (private carriers)	~$2.50-$4.50 per $100 payroll	Before hiring first employee
General Liability Insurance	Private Carrier	~$924-$1,596/year	Before starting operations
Janitorial Surety Bond	Bonding Company	~$100-$500/year	Recommended before taking clients
Federal EIN	IRS	Free	Immediate (online)

How to Start a Cleaning Service in Minnesota (Step by Step)

Step 1: Form Your Business Entity

Register an LLC with the Minnesota Secretary of State ($135 by mail, $155 online). This protects your personal assets from business liabilities. Designate a registered agent with a physical Minnesota address. If using a business name different from your LLC name, file a Certificate of Assumed Name ($30 mail / $50 online) and publish it in a local legal newspaper for two consecutive issues. Apply for a free federal EIN from the IRS.

Step 2: Register for Sales Tax

Minnesota taxes both residential and commercial cleaning services. Unlike many states that exempt cleaning from sales tax, Minnesota charges the full 6.875% state sales tax (plus local additions up to ~1.5%) on most cleaning activities including:

Floor cleaning, vacuuming, waxing
Window washing, wall cleaning
Janitorial services, office cleaning
Carpet cleaning, ceiling tile cleaning
Pressure washing buildings
Ventilation system cleaning

Not taxable (if separately itemized): dishwashing, dusting, bed-making, painting, snowplowing, sewer/drain cleaning, and real property repairs.

Critical rule: Mixed contracts that include both taxable and nontaxable services are taxed on the full amount unless nontaxable services are separately stated on the invoice. Itemize carefully.

Tax-exempt purchasing: Cleaning supplies consumed while providing taxable cleaning services can be purchased tax-exempt using Form ST3. Register through the Minnesota Department of Revenue.

Step 3: Get Insurance Coverage

General liability insurance is essential for any cleaning business. Most commercial clients and property managers require proof of coverage. Typical: $1 million per occurrence / $2 million aggregate. Average cost for cleaning businesses: $924-$1,596/year.

Workers’ compensation is mandatory in Minnesota for any employer with any employees, including part-time and temporary workers. There is no minimum threshold. The Department of Labor and Industry (DLI) enforces compliance. Cleaning services typically fall under NCCI class code 9014 (janitorial) or 0917 (residential cleaning), with rates around $2.50-$4.50 per $100 of payroll. Sole proprietors are automatically excluded but may opt in.

Step 4: Get Bonded (Recommended)

A janitorial surety bond protects clients against employee theft or dishonesty. While not required by Minnesota law, many commercial clients and property managers require it. Typical cost: $100-$500/year for a $5,000-$25,000 bond, depending on your credit score.

Step 5: Set Up Employee Right-to-Know Program

Minnesota’s Employee Right-to-Know program (MN Rules Chapter 5206), enforced by MNOSHA, is more stringent than federal OSHA for cleaning businesses:

Written Hazard Communication Program covering all chemicals used
Safety Data Sheets (SDS) for every chemical product, retained for 30 years
Annual employee training on chemical hazards (Minnesota requires annual refresher – federal OSHA only requires initial training)
Proper GHS-compliant labeling on all chemical containers

Step 6: Set Up Employer Accounts (If Hiring)

Register with UIMN for unemployment insurance (new employer rate: 1.00% for most industries, plus 0.40% base tax, on the first $44,000 per employee, with a 14% additional assessment). Set up Paid Family & Medical Leave (PFML) contributions (0.88% of wages, split 50/50). Provide Earned Sick and Safe Time (1 hour per 30 hours worked, up to 48 hours/year). Report new hires within 20 days through mn-newhire.com.

Worker classification: Minnesota has strict rules around classifying workers as independent contractors vs. employees (MN Statute 181.723). Cleaning companies using subcontractors must ensure they meet the multi-factor test. Misclassification carries significant penalties.

Cost to Start a Cleaning Service in Minnesota

Item	Cost	Notes
LLC Articles of Organization	$155	One-time filing fee (online)
Annual LLC Renewal	$0	Free, due December 31 each year
Assumed Name (DBA)	$50 + ~$50-$100 newspaper	If using a different business name
Federal EIN	Free	IRS, immediate online
MN Tax ID Registration	Free	Department of Revenue
General liability insurance	$924-$1,596/year	$1M/$2M coverage
Janitorial surety bond	$100-$500/year	Recommended, not required
Workers’ comp insurance (per employee)	~$2.50-$4.50 per $100 payroll	Required at 1+ employees
Cleaning supplies & equipment	$500-$2,000	Vacuums, mops, chemicals, etc.

Estimated total startup cost: $1,729-$4,401 (solo operator first year, residential cleaning; add workers’ comp, unemployment tax, PFML, and ESST once you hire)

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Frequently Asked Questions

Do I need a license to start a cleaning business in Minnesota?

No state-level cleaning license is required in Minnesota. You need to form your business entity with the Secretary of State, register for sales tax with the Department of Revenue, and carry proper insurance. There is no contractor registration required specifically for cleaning services.

Are cleaning services taxable in Minnesota?

Yes – both residential and commercial cleaning services are subject to the 6.875% state sales tax (plus local additions). This includes floor cleaning, window washing, janitorial services, and carpet cleaning. Some services like dishwashing, dusting, and bed-making are exempt if separately itemized on invoices.

Do I need workers’ compensation for my cleaning business in Minnesota?

Yes, from your very first employee. Minnesota requires workers’ comp for all employers regardless of hours worked. Cleaning businesses typically pay $2.50-$4.50 per $100 of payroll. Sole proprietors are automatically excluded but may opt in.

Do I need a bond for a cleaning business in Minnesota?

A surety bond is not legally required, but many commercial clients and property managers require a janitorial bond. A typical $10,000 bond costs $100-$500/year depending on your credit score.

What is the Employee Right-to-Know requirement?

Minnesota’s MNOSHA requires cleaning businesses with employees to maintain a written Hazard Communication program, keep Safety Data Sheets for all chemicals (retained 30 years), and provide annual chemical safety training. This is more stringent than federal OSHA, which only requires initial training.

How much does it cost to start a cleaning business in Minnesota?

A solo cleaning business can start for around $1,729-$4,401 in the first year, including LLC formation ($155), insurance ($924-$1,596), bond ($100-$500), and supplies ($500-$2,000). Annual LLC renewal is free. Add workers’ comp and employer taxes once you hire.

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About the Author

Robert Smith has run a licensed private investigation firm for 8 years from the Florida-Georgia state line - where he learned firsthand how wildly business licensing rules differ between states just miles apart. He personally researched requirements across all 50 states and D.C., reviewing hundreds of government sources over hundreds of hours to build guides he wished existed when he started. Not a lawyer or accountant - just a business owner who has done the research so you don't have to.

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How to Start a Cleaning Service in Minnesota (2026)