Do Business in Minnesota

Minnesota is one of the best states to start, grow, or locate your business. In fact, CNBC ranked Minnesota the sixth best state for business in 2024. 

Minnesota is home to: 

• The #1 health tech cluster in the world (Medical Alley)

• The top-rated airport in the U.S. (Minneapolis-St. Paul International Airport)

• One of the highest per capita concentrations of Fortune 500s (17 companies) 

• Over 1,200 foreign-owned businesses   

• Hundreds of thousands of small and emerging businesses and a thriving startup ecosystem   

In Minnesota, businesses have a legacy of building things that last while changing the global economy for the better. Whether a company is opening its doors for the first time or expanding, business leaders agree that Minnesota is the Star of the North.

There are numerous benefits to doing business in Minnesota. Minnesota's top-ranked education systems, engaged workforce, and statewide investments in skills training provide a talent pool that is defining the future of the global economy. The state’s north-central location in the U.S. and first-rate infrastructure seamlessly connect companies with customers and suppliers worldwide. Alongside an unmatched quality of life, the state offers many incentive opportunities to grow and expand your business. 

In Minnesota, you will find a network of more than 1.2 million other companies, as well as 46 million potential customers in the region. 

The costs of doing business in Minnesota vary depending on factors such as industry, location within the state, and specific business activities. When operating a business in Minnesota, consider the following: 

• Labor and workforce development

• Taxes

• Utilities

• Real estate or rent

• Regulatory compliance

• Transportation and logistics

• Insurance

• Support services

• Economic incentives

Businesses must comply with the appropriate federal, state, and local statutes and regulations. At the state level, the Departments of Labor and Industry and Commerce oversee licensing, labor, and consumer protection regulations required for businesses. The Minnesota Pollution Control Agency oversees environmental regulations. The Minnesota Secretary of State’s Office handles business registration and annual renewals.

For specific information about regulations pertinent to your industry, contact the Business Development team at the Department of Employment and Economic Development (DEED) to help. 

Yes. Minnesota is highly competitive in offering business-friendly incentives, grants and loan programs to support private industry with everything from workforce training and new equipment purchases to how to get started. The State’s dedicated Business Development team can assist with identifying the right opportunity for you at a state level, as well as connecting business leaders with relevant local city and county level tax credits and incentives.  

Home to an extraordinary concentration of diverse Fortune 500 companies and a fast-growing startup ecosystem, Minnesota is better at growing new businesses than any other state in the nation. But don’t take our word for it — data shows that if you start a business here, it's more likely to survive beyond five years than anywhere else in the country. 

The Department of Employment and Economic Development (MN DEED)’s Business Development Team is the single point of contact to match companies making location and expansion decisions with the best tools and resources. Whether your plans involve expanding an existing business, relocating from another state, or consolidating or establishing a new operation in Minnesota, we can help you make it happen. 

The Business Development Team will leverage workforce development and training resources, business and community finance programs, and partnerships with key statewide stakeholders to help companies. This includes assisting with site identification, helping address site due diligence needs, facilitating navigation of the permitting process, or offering finance assistance and workforce training and development tools.  

Minnesota is a top-rated state for business and foreign investment. Today, the state is home to the operations of over 1,200 foreign-owned businesses from about 40 countries. These notable companies, which include Allianz, Coloplast, DiaSorin, GF (formerly Uponor), JBS Foods and Rosenbauer, employ over 171,600 people and have invested $36.7 billion in property, plants and equipment in the state as of 2020.  

In Minnesota, foreign businesses find: 

• The #1 health tech cluster in the world (Medical Alley)

• The top-rated airport in the U.S. (Minneapolis-St. Paul International Airport)

• One of the most highly productive and active workforces in the nation 

• Reliable and affordable energy and high-quality air and water (Minnesota is ranked #5 for infrastructure and #4 for air and water quality)

• One of the highest per capita concentrations of Fortune 500s (17 companies are located in the state) 

• Hundreds of thousands of small and emerging businesses and a thriving startup ecosystem 

Learn why business leaders choose the Star of the North.  

If you have questions about doing business in Minnesota, the Office of Foreign Direct Investment guides foreign companies through the advantages of expanding or relocating in Minnesota.  

Minnesota is a headquarters economy and home to industries as diverse as our workforce. The state has a strong ecosystem of companies and public and private support services for advanced manufacturing, clean technology and renewable energy, food and agriculture, life sciences, and technology.

Learn more about Minnesota’s key industries here. 

The Minnesota Department of Employment and Economic Development (MN DEED) is your guide to doing business in Minnesota and is prepared to answer any question at any stage of your business.  

If you want to start or grow your small business, contact the Small Business Assistance Office via Form, phone (651-556-8425 or 800-310-8323), or email at [email protected] to ask a question or book a consultation. 

If you want to expand or locate your business in Minnesota, contact MN DEED's Business Development team for help.   

If you are a foreign business looking for opportunities to build a US-based operation, contact Laurence Reszetar, Director, International Business Strategy, at [email protected] and 651-785-7211 (WhatsApp and iMessage welcome), or Elise Buchen, International Business Development Manager and Protocol Officer at [email protected] and 651-387-0335. 

To see a full list of contacts, visit the Contact page.