How to Start a Construction Business in Minnesota
- 1). Visit the website of the Minnesota Department of Labor & Industry and download a license application packet for "residential building contractor/remodeler."
- 2). Take and pass the required examinations. You must pass both a Minnesota Business and Law exam and a Residential Building Contractor exam. The exams are administered by a private company, Pearson VUE. Visit the Pearson VUE website to download a Candidate Handbook and to schedule your exams. You must document your passing scores on your license application.
- 3). Choose a business name and register it with the Minnesota secretary of state's office. You must include proof of registration with your application. If you are going to operate as a sole proprietorship you need only file for a Certificate of Assumed Name. Visit the secretary of state's website to file online. If your business is going to take another legal form--a limited liability partnership or a corporation, for example--navigate to the appropriate section of the secretary of state's website for detailed instruction. Meet with a lawyer and an accountant for professional advice before you register.
- 4). Authorize a criminal background check by the Minnesota Bureau of Criminal Apprehension. Complete and sign the relevant form, which is included in your application packet. The form must be submitted with your application.
- 5). Obtain federal and state tax identification numbers. In both cases, you can register online.
- 6). Obtain general liability and property damage insurance with a limit of at least $100,000 per occurrence. Have your insurance agent complete the Certificate of Insurance form, which is included in your application packet.
- 7). Visit the website of the Minnesota Unemployment Insurance program, if you will have employees, and register online. Obtain workers' compensation insurance from a commercial insurance agent, since Minnesota does not administer workers' compensation insurance as do other states.
- 8). Complete your application and submit it, along with all supporting documentation and fees, to the indicated address. Upon approval, you will be sent a contractor license.
