Fifteen Fortune 500 companies are headquartered in Minnesota, including 3M, Target, and General Mills. Minnesota is also home to the Mayo Clinic, one of the world's leading research hospitals, and Medical Alley, a health-tech cluster composed of over 800 healthcare industry organizations.
What are the reasons for doing business in Minnesota?
Minnesota has a long history of fostering growth and innovation. In addition to being the first state to have a pro-bono patent assistance program, Minnesota offers robust incentives for industry development. One example is the Minnesota Job Creation Fund, which provides financial investments to businesses involved in activities such as manufacturing, warehousing, distribution, and technology.
Another draw for companies, particularly in terms of recruitment, is Minnesota’s quality of life. Minnesota performs well when it comes to primary indicators such as education, voting rights, and access to good healthcare.
How is Minnesota’s infrastructure?
Minnesota’s economy is supported by a modern infrastructure network that includes marine freight, road, rail, air, broadband, and cybersecurity. In the category of infrastructure, Minnesota was ranked number one by U.S. News & World Report. CNBC gave the state an A- for this category.
What is the cost of doing business in Minnesota?
The cost of doing business in Minnesota is higher than in other states. Minnesota has a corporate tax rate of 9.8% and an income tax rate that ranges from 5.35% to 9.85%. There is a state general tax rate of 6.875%, plus additional taxes at the local level. However, Minnesota does not levy sales tax on clothing for general use, food grocery items, and prescription and over-the-counter drugs.
What are other challenges of doing business in Minnesota?
Minnesota has been experiencing labor supply constraints due to an aging population and low or negative net migration rate.