Minneapolis Tax and Financial Services for Business Owners
Minneapolis is home to a robust community of CPAs, tax advisors, and financial service professionals who specialize in helping business owners navigate Minnesota’s tax landscape — including state corporate taxes, Minneapolis-specific sales surtaxes, and the complexity of operating across the Twin Cities metro. Here’s what you need to know and who can help.
Understanding Minnesota Business Taxes
Minnesota Corporate Franchise Tax
C-corporations pay Minnesota’s Corporate Franchise Tax at a rate of 9.8% — one of the higher state corporate tax rates in the U.S. However, Minnesota’s strong workforce, infrastructure, and quality of life often justify the premium for businesses that need that talent base.
Pass-Through Taxation (LLCs and S-Corps)
LLC members and S-Corp shareholders pay Minnesota individual income tax on their share of business income. Minnesota’s top individual income tax rate is 9.85% — also among the higher state rates. Strategic entity structure matters significantly in Minnesota.
Minnesota Sales Tax
The state sales tax rate is 6.875%. Minneapolis adds a local surtax (currently 0.5%) bringing the effective rate for most Minneapolis retail transactions to approximately 8.025%. Food (for home consumption) and prescription drugs are generally exempt.
Minneapolis Employer Obligations
- Minnesota unemployment insurance (UI) tax for employees
- Minneapolis sick and safe leave compliance
- Minneapolis minimum wage (currently higher than state minimum)
- State workers’ compensation insurance required for employees
Top CPA Firms and Tax Advisors in Minneapolis
CliftonLarsonAllen (CLA)
Focus: Audit, tax, outsourced accounting for mid-market businesses
Highlights: CLA is headquartered in Minneapolis and is one of the top 10 largest accounting firms in the U.S. Strong practices across construction, real estate, healthcare, and manufacturing. Deep Minnesota roots with national reach. An excellent choice for growing businesses that need a firm that can scale with them.
Eide Bailly
Focus: Audit, tax, business advisory
Highlights: One of the top 25 CPA firms in the country with a strong Minneapolis presence. Known for excellent client service and deep expertise in industries prevalent in the Twin Cities — healthcare, technology, financial services, and manufacturing.
Baker Tilly (Minneapolis)
Focus: Audit, tax, advisory for mid-market companies
Highlights: Baker Tilly’s Minneapolis office serves a broad range of industries with particular strength in real estate, private equity portfolio companies, and technology businesses. Strong M&A advisory practice.
Abdo
Focus: Accounting, tax, and advisory for growing businesses and entrepreneurs
Highlights: Minnesota-based CPA firm with a strong reputation for serving entrepreneurial companies, family businesses, and real estate investors across the Twin Cities. Known for accessible, practical business advice.
Redpath and Company
Focus: Tax, accounting, and business advisory for private companies
Highlights: St. Paul-headquartered firm (Twin Cities metro) known for its work with privately held businesses, nonprofit organizations, and high-net-worth individuals. Strong reputation for personalized service.
Boyum Barenscheer
Focus: Business accounting, tax planning, audit
Highlights: Well-regarded Minnesota firm serving mid-size businesses and entrepreneurs. Known for hands-on partner involvement and strong relationships with clients across industries including manufacturing, distribution, and professional services.
Financial Advisors for Minneapolis Business Owners
Ameriprise Financial (HQ: Minneapolis)
One of the largest financial planning companies in the U.S., headquartered in Minneapolis. Strong for business owners needing retirement planning, business succession strategies, and personal wealth management alongside their business operations.
Edelman Financial Engines
National RIA with Minneapolis advisors. Strong for business owners wanting comprehensive financial planning including exit planning, business owner retirement strategies, and personal investment management.
Wealth Enhancement Group
Plymouth, MN-headquartered wealth management firm (Twin Cities) known for working with business owners on business valuation, exit planning, and personal wealth strategy. Strong local reputation.
Tax Planning Tips for Minneapolis Business Owners
- Entity Election Matters: With Minnesota’s high corporate tax rate, carefully evaluate whether C-Corp, S-Corp, or LLC structure is optimal for your situation. Work with a Minnesota CPA.
- Qualified Business Income Deduction: Pass-through entity owners may qualify for the federal 20% QBI deduction — significant planning opportunity.
- Minnesota Angel Investment Tax Credit: Minnesota offers a 25% tax credit for investments in qualifying small businesses. If you’re raising capital, this can be a significant incentive for local investors.
- R&D Tax Credits: Minnesota has its own R&D tax credit program in addition to the federal credit — valuable for medtech and tech companies.
- Sales Tax Exemptions: Manufacturing equipment and certain technology purchases may qualify for Minnesota sales tax exemptions. Know your exemptions.
Need tax or financial help in Minneapolis? Join Hustler’s Library free for curated tools and resources for Twin Cities business owners.
