MN · Licensing Reference

Janitorial business licensing — Minnesota

Last reviewed: June 2, 2026  |  Primary sources: Minnesota Secretary of State; MN DOR; MN DOLI; SBA.gov

Minnesota has built one of the most comprehensive labor and environmental compliance environments in the Midwest, and commercial cleaning companies operating here face a distinctly layered set of requirements. Four elements are critical: (1) janitorial and building cleaning services are expressly taxable under Minnesota sales tax; (2) the PFAS-in-products ban that took effect January 1, 2025 directly affects cleaning product procurement; (3) the Minnesota Earned Sick and Safe Time Act, effective January 1, 2024, applies to every employee; and (4) the state's forthcoming Paid Family and Medical Leave program adds another payroll obligation. Understanding each layer is essential before pricing or staffing any Minnesota commercial cleaning contract.

Business Registration

Entities doing business in Minnesota must register with the Minnesota Secretary of State, 180 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155 (phone: 651-296-2803). LLC formation costs $135 online; annual renewals are $45. Corporations pay $155 to form and $45 for annual renewals. No statewide janitorial license is required, but Minneapolis requires a Minneapolis Business License for all businesses operating within the city. St. Paul similarly requires a city business license. Register also with the Minnesota Department of Revenue for a sales tax account before performing your first taxable cleaning service.

Sales Tax on Janitorial Services — Clearly Taxable

Minnesota's sales tax applies to "building cleaning and maintenance, disinfecting, and pest control services" under Minn. Stat. § 297A.61, Subd. 3(g)(5), and the Department of Revenue's guidance confirms that commercial and residential janitorial services are taxable. The statewide sales tax rate is 6.875%, and local jurisdictions add rates ranging from 0.5% to 2% — the Minneapolis-St. Paul metro area commonly results in total rates of 7.375%–8.025%. Carpet cleaning, window washing, and disinfecting services are all within the taxable category. Register and file sales tax returns electronically through the Minnesota e-Services portal; monthly filers remit by the 20th of the following month. You must charge and collect sales tax on every cleaning service invoice to clients at Minnesota locations.

MNOSHA — Minnesota's State-Plan Safety Agency

Minnesota operates a state-plan OSHA program through the Minnesota Occupational Safety and Health (MNOSHA) Division, 443 Lafayette Road N., St. Paul, MN 55155 (phone: 651-284-5050). MNOSHA has jurisdiction over private-sector and public employers and enforces standards that generally mirror federal OSHA, with some state-specific additions. For BSCs, MNOSHA's enforcement priorities include hazard communication compliance (SDS availability, GHS labeling), ergonomics in facilities requiring repetitive mopping or scrubbing operations, and bloodborne pathogen programs for healthcare accounts. The MNOSHA Workplace Safety Consultation program (651-284-5060) provides free on-site visits for qualifying small employers. MNOSHA penalties for serious violations run up to $15,625 per incident.

PFAS in Cleaning Products — Minnesota's 2025 Ban

Minnesota enacted landmark PFAS legislation (Minn. Stat. § 116.943) that, effective January 1, 2025, prohibits the sale, offering for sale, or distribution in Minnesota of eleven categories of products containing intentionally added PFAS, including cleaning products. Specifically, all-purpose and multi-surface cleaners, floor care products, carpet and upholstery cleaning products, and similar categories are affected. Cleaning companies that procure supplies from distributors for use in Minnesota operations must confirm with each supplier that their products do not contain intentionally added PFAS. The Minnesota Pollution Control Agency (MPCA) enforces this law; violations are subject to civil penalties under Minn. Stat. § 115.071. Review your current chemical inventory against your suppliers' PFAS disclosure certificates — many national brands have already reformulated, but some floor finish and carpet treatment products still contain fluorotelomers. A separate PFAS reporting requirement for manufacturers was delayed to July 2026 per MPCA rulemaking updates.

Minnesota Earned Sick and Safe Time Act

Effective January 1, 2024, the Minnesota Earned Sick and Safe Time (ESST) Act (Minn. Stat. §§ 181.9445–181.9448) requires all employers to provide paid sick and safe leave to employees who work at least 80 hours per year in Minnesota. Accrual is one hour of ESST for every 30 hours worked, up to a minimum of 48 hours per year. Employees may use ESST for their own or a family member's illness, preventive care, domestic abuse situations, workplace or school closures due to public health emergencies, and bereavement. Employers may not require employees to find a replacement worker as a condition of using ESST. Records must be kept for at least three years and provided to MNOSHA within 72 hours of a request. Minneapolis and St. Paul have local sick-leave ordinances that exceed state minimums — employees working in those cities accrue at higher rates and may carry over more hours.

Minnesota Paid Family and Medical Leave

Minnesota enacted paid family and medical leave legislation in 2023 (Minn. Stat. § 268B), with benefits scheduled to begin January 1, 2026. Contribution obligations begin January 1, 2026 as well. The combined employer-employee contribution rate is set at 0.88% of wages (adjustable annually). Employees may use up to 12 weeks of paid family leave and 12 weeks of paid medical leave per year (up to 20 weeks combined for pregnancy-related incapacity). Benefits are calculated at 66%–90% of average weekly wages up to a cap. All employers regardless of size must participate, though small employers (fewer than 30 employees) pay a reduced employer share. For a cleaning company with 20 full-time and 30 part-time employees, the combined payroll cost of this new mandate should be budgeted into 2026 operating projections.

Workers' Compensation

Minnesota requires WC coverage for all employers with one or more employees, administered by the Minnesota Department of Labor and Industry, Workers' Compensation Division. Minnesota is an open-market (competitive) state; the NCCI class code for commercial cleaning contractors is 9014. Statewide rates for the service sector are set by NCCI and vary by carrier and experience modification. Employees who are regularly assigned to a single location rather than rotating among client sites present a more straightforward WC classification. Independent contractors who perform work for your company without their own WC coverage may be deemed your employees for WC purposes under the Minnesota Workers' Compensation Act — require COIs from every subcontractor.

Unemployment Insurance

Register with Minnesota Unemployment Insurance (UI) Program, 332 Minnesota Street, Suite E200, St. Paul, MN 55101 (phone: 651-296-6141). Minnesota's taxable wage base is $40,000 per employee per year as of 2024. New employer rates for non-construction service employers start at approximately 1.0%–1.8%. After two to three years of experience, rates adjust in the range of 0.1% to 9.0%. Quarterly wage-detail reports are filed electronically through the UI Employer Self-Service system.

Independent Contractor Classification

Minnesota applies a nine-factor test under Minn. Stat. § 181.722 for determining independent contractor status in the construction industry, but for the cleaning sector, the Department of Labor and Industry and the UI program apply a common-law control analysis. Cleaning companies should not assume that using 1099 workers insulates them from UI, WC, or ESST obligations — state auditors examine actual working arrangements, not contract labels. Document each subcontractor's independent business registration, their own equipment use, their own client list, and their certificate of insurance. Workers who are reachable at your dispatch number, work only your client list, and use your equipment are employees regardless of the contract language.

Primary sources

Page last reviewed: June 2, 2026. Primary sources: Minnesota Secretary of State; MN DOR; MN DOLI; SBA.gov. Spot an error? Contact us.