General tax structure - Corporations must file a Minnesota tax return if they transact business or own property in Minnesota, regardless of their state of incorporation. A unitary group filing a combined return must select one of its members to be the designated filer. Unity of ownership exists when a corporation is a member of a group of two or more corporations and more than 50 percent of the voting stock of each member is directly or indirectly owned by a common owner, either corporate or noncorporate, or by one or more of the member corporations of a unitary group. The Minnesota income tax rate is a flat 9.8% plus a 5.8% tax on any Alternative Minimum Taxable Income over the base tax. Local governments assess property tax.
Businesses which pay employees must register with the state and pay state unemployment and withholding taxes. Self-employed individuals who pay themselves wages from their business are also subject to unemployment and withholding taxes.
Sales taxes - 6.875% tax with local optional tax that can push the total rate to over 10%.
Business licenses - Directory of Licenses and Permits; by Regulated Activity and MN Department
Information Links –
Minnesota State Sales Tax Rates and Requirements
Minnesota Department of Revenue - Most tax related questions
MN Small Business Assistance Office - Information on starting an LLC or corporation
MN Legal and Regulatory - Information on specific industry regulations
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Posted Dec 31, 1969 4:33:30 PM by: Minnesota State Sales Tax Rates and Requirements | Education