The next time you see the Welcome to Minnesota sign, consider it an opportunity to establish a business in the seventh-best state for business in the US.
It makes sense that many people would rather set up an enterprise somewhere in the south, where the sun is on their face much of the year, than in the Upper Midwest.
But the climate aside, Minnesota has the ideal atmosphere for starting and running a successful business.
Here are business advantages The North Star State has you shouldn’t miss out on.
Favorable Tax Laws
Tax laws can be a nightmare for small businesses and startups. If state laws on taxation are not favorable, you could easily find yourself struggling.
New businesses in Minnesota have some advantages that can significantly reduce their tax burden.
The state doesn’t tax personal property, utilities, and inventory. You won’t have to pay for the stuff sitting in your store. You also won’t get taxed for internet access or information services.
State Incentives
Minnesota has lucrative incentives for those who choose to run a business in the state. A company registered as a C and S Corporation or an LLC becomes eligible for state-based programs like the following:
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Opportunity Zones
Minnesota established Opportunity Zones as a program to help develop low-income communities.
As such, these zones welcome long-term investments from companies which are in turn rewarded with business incentives such as a temporary tax deferment on capital gains. You’re also eligible for a permanent exclusion from taxable income received on capital gains.
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DEED Programs
The state’s Department of Employment and Economic Development (DEED) has introduced financing programs to assist in job creation. DEED programs like the Minnesota Innovation Loans for Entrepreneurs (MILE) and the Minnesota Job Creation Fund help businesses create and retain jobs.
Limited Liability
Running a business in a place that doesn’t offer protection for personal property can be a huge risk to personal assets when things go wrong.
You won’t have to worry about creditors going after your personal wealth as the owner or investor in an LLC. That’s because Minnesota has limited liability protection that restricts business lawsuits to the business.
The Twin Cities
Minnesota’s Twin Cities, Minneapolis and Saint Paul, are uniquely designed to favor businesses. These are large, connected cities, but that’s not the point, as you can get that in any other state.
What makes the Minneapolis-Saint Paul metropolitan area perfectly suited for businesses is that it’s home to more than half of the state’s population. It is the state’s economic, political, and cultural hub which makes it a favorable environment for businesses.
High Quality of Life
Minnesota is a beautiful state, with all four seasons creating distinct and captivating sceneries. It’s a land of prairies, rolling hills, lakes, and vast forests. Residents have access to the natural beauty, from the shores of Lake Superior to the woodlands in the state’s six national parks.
Between nature and the many modern attractions, Minnesotans are able to enjoy an exciting and fulfilling lifestyle.
In addition, Minnesota has excellent healthcare, ranking fourth in the country for healthy lives. As one of the least stressed states, you can expect a healthy workforce capable of supporting your business.
Closeness to Major Cities
A place that acts as a gateway to major cities is ideal for business since the connection influences trade. Minnesota’s location in the Upper Midwest makes it easy to access major US cities and Canadian cities within hours.
Large water bodies like Lake Superior and Mississippi River link Minnesota to several states, opening the borders for business.
Cannabis Laws
The cannabis industry in the US is huge, making it lucrative for businesses. But not all states have legalized marijuana. In Minnesota, medical cannabis has been legal since 2014 and is now legal for recreational use as well.
You could start a successful business within Minnesota’s medical marijuana industry. Marijuana Doctors have helpful info if you want to learn more about the state’s medical marijuana program.
Final Thoughts
The economy, infrastructure, and job growth are other factors that make Minnesota one of the best states for business.
It’s important to keep in mind that the type of business you start affects its success. But overall, Minnesota is supportive of business growth.