Federal

The type of business you have will decide which taxes you must pay to the IRS each year.

See types of business taxes

See the forms to file for each type of business entity:

• Sole proprietorship
• Partnership
• Corporation
• S corporation
• Limited liability company (LLC)

State

If you have a Minnesota Tax ID for your business, you must pay taxes to the State of Minnesota.

The legal structure of your business will determine what taxes you have to pay. The most common types of business taxes in Minnesota are:

• Sales and use tax
• Income withholding tax
• Unemployment insurance tax

Minnesota tax ID requirements

Business tax registration

Local

The State collects local use tax annually. If you buy things outside of Minneapolis and spend over $770 in a year, you have to pay a 0.5% local use tax.

It is due April 15 for all taxable purchases in the previous year if the seller did not collect use tax at the time of sale.

Determine your local use tax

See the Minnesota Department of Revenue sales tax fact sheets to:

• See whether you owe local use tax for:
  • Individuals 
  • Businesses
• Calculate your use tax amount

See sales and local use tax on the Minnesota Department of Revenue

Tax basics from Minnesota DEED

Minnesota Department of Revenue Business Center

Tax information for Minnesota businesses

Unemployment Insurance Minnesota