How to Start a Home Inspection Business in Minnesota: No State License, City Evaluator Licenses

If you have searched for a minnesota home inspector license, you may have found conflicting answers. The short version: Minnesota does not issue a state license for general home inspectors. No licensing statute or board exists for general inspections. That does not mean you can start taking paid jobs tomorrow. Your business is shaped by city rules, a few specific state licenses, and the same filing and tax paperwork every Minnesota business handles. This guide covers what to check, in what order, and what each step costs.

This is informational content, not legal or tax advice. Rules change and city ordinances vary. Confirm details with the agencies named below, and talk with a qualified attorney or CPA before you choose a business structure or sign a lease.

Materials and information you need before you start

Gather these items before you file anything. Most of them feed directly into the formation steps and the city applications.

• A Minnesota street address for your registered office. A PO box alone is not accepted. The registered office does not have to match your main place of business.
• A proposed business name. An LLC name must include the words limited liability company or the abbreviation LLC, and it cannot include corporation or incorporated.
• A list of the cities and counties where you plan to work, so you can check each one's rules.
• A federal Employer Identification Number from the IRS, which you will need for tax registration and any employees.
• A written inspection agreement and a sample inspection report. City reviewers and insurers often ask to see both.
• Insurance quotes, including errors and omissions coverage.
• A filing budget covering the state fees listed in the steps below.

Step 1: Confirm that no state home inspector license applies

Minnesota has no state license for general home inspectors. Because this is the foundation of everything else, verify it yourself rather than relying on a competitor's website or a forum post. Contact the Minnesota Department of Commerce licensing office and ask in writing whether any state license applies to general residential home inspections. Save the reply with your business records.

The absence of a state license does not remove your other obligations. You still need city licenses where they apply, insurance, and accurate written reports. You can also search for any activity-specific license through License Minnesota at mn.gov/elicense, which lets you browse by topic, by agency or through an A to Z index.

Step 2: Check the point-of-sale evaluator rules in every city you serve

This step is where most new inspectors get caught off guard. Minneapolis and St. Paul run Truth-in-Sale-of-Housing (TISH) programs. When a home is sold in those cities, a TISH evaluation is required, and the evaluator must be licensed by that city.

The two cities differ in what they ask for:

• Minneapolis asks evaluators for a certificate of insurance. Both cities say evaluators set their own prices.
• St. Paul asks for a third-party national exam plus a practical test. Check its current evaluator fee and application directly with the city, because the requirements and fees can change.

Neither city issues a general business license, so a TISH license does not replace the category licenses described in Step 7. Also remember that some suburbs run their own point-of-sale rules. Minnesota has 87 counties, about 853 cities and about 1,780 townships, so no single state answer covers local practice. Before you market in a suburb, ask its building or licensing office whether a point-of-sale inspection or evaluator license applies.

Step 3: Get radon licensing if you test for radon

Radon work is licensed by the Minnesota Department of Health (MDH) under Minn. Stat. 144.4961. The two professional categories are separate:

• Radon measurement professional: $150 per year.
• Radon mitigation professional: $250 per year.

Confirm these figures with MDH before you budget, since fees and program details can change. If you offer radon testing as an add-on, you need the measurement license before you test. Think carefully before pursuing the mitigation license as well. An inspector who also sells the fix for a problem they found may face questions about objectivity from clients, lenders and insurers.

Step 4: Decide whether you will perform any repair work

Inspection itself generally does not require a trade license, but repair work does. If you or a partner will perform electrical, plumbing or similar repairs, that work is licensed through the Minnesota Department of Labor and Industry (DLI). HVAC has no state license, only a $25,000 mechanical bond filed with DLI. Ask DLI to confirm exactly which activities trigger a license before you add any service.

Many inspectors decide to stay out of repair work entirely. Recommending a contractor you also own or work for can damage the trust your reports depend on, and it can create conflicts that are hard to explain to a buyer after a dispute.

Step 5: Choose your entity and form it with the Secretary of State

Most home inspectors choose between a sole proprietorship, an LLC or a corporation. A sole proprietorship requires no state formation filing unless you operate under an assumed name. An LLC or corporation is formed by filing with the Minnesota Secretary of State (SOS). Formation is a filing, not a license, and it does not authorize you to inspect homes.

• Articles of Organization (LLC): $155 online or in person, which is expedited service, or $135 by mail, which is not expedited.
• Articles of Incorporation (corporation): $155.
• Name reservation: $55, good for 12 months and renewable in additional 12 month periods. Use this if you need time to finish setup.

Search for name availability and file online through the Minnesota Business and Lien System at mblsportal.sos.mn.gov/Business/Search. The SOS does not publish a guaranteed turnaround in business days on its forms, so plan for some waiting time, especially if you file by mail.

Tax treatment matters as much as the filing fee. An LLC taxed as a partnership or disregarded entity passes income through to its owners, who pay Minnesota individual income tax at 5.35 to 9.85 percent. A corporation that files federally as a C corporation pays the 9.8 percent corporation franchise tax. A minimum fee under Minn. Stat. 290.0922 also applies to some entities, so confirm which rules apply to your structure with a CPA.

Every domestic entity must maintain a registered office at a Minnesota street address. A registered agent is optional for domestic entities, so you do not have to pay for one, but you do need an address where the state can deliver legal notices.

Step 6: Register for taxes with the Department of Revenue

Register with the Minnesota Department of Revenue for a Minnesota Tax ID and, where required, a Sales and Use Tax account. Registration must be in place before you make taxable sales. Start at revenue.state.mn.us, and use the online new business registration at the Revenue new business registration page.

Tax registration is not a business license. The state sales tax rate is 6.875 percent, with local taxes added on top. Whether your inspection fees or any add-on services are subject to sales tax is a question to put to the Department of Revenue directly, not one to settle by assumption.

Step 7: Apply for local licenses and zoning approval by category

Minnesota has no general statewide business license. Cities and some counties license businesses by category and activity, and zoning rules decide whether you can work from a home office. Call the city's licensing and zoning offices in each place you plan to operate, and ask three questions:

1. Does a business license apply to my category of work?
2. Does a home occupation permit apply if I work from my house, and what limits does it place on client visits, signs and vehicles?
3. Does the city require a point-of-sale evaluator license or any other inspection-related registration?

Minneapolis and St. Paul license by category and do not issue a general business license, so your questions there should focus on the specific categories that apply to you.

Step 8: File a Certificate of Assumed Name if you use a trade name

If you will operate under a name other than your legal name or your LLC name, you need a Certificate of Assumed Name (a DBA). File it with the Secretary of State's Business Services office. The fee is $50 online or in person, or $30 by mail.

Do not skip the publication step. After filing, the certificate must be published for two successive issues in the legal notices section of a qualified legal newspaper in the county where your principal place of business is located. Failure to publish may render the certificate invalid. The certificate must be renewed each year, and renewal is free. Assumed names are filed only with the Secretary of State, not with a city or county.

Forms and instructions are on the state's page at sos.mn.gov assumed name (DBA) page.

Step 9: Buy insurance before your first paid inspection

Get quotes for errors and omissions insurance, which covers claims that your report missed or misstated a defect, and general liability insurance, which covers injuries or property damage at a site. Ask whether the policy covers the specific services you plan to offer, including radon testing if you add it. Minneapolis asks TISH evaluators to provide a certificate of insurance, so have your policy in place before you apply.

Insurance costs vary widely by coverage limits, claims history, and the services you offer. Get at least two written quotes and read the exclusions, which are where many inspection claims are decided.

Step 10: Calendar your annual obligations

An LLC or corporation must file an Annual Renewal with the Secretary of State every year. The fee is $0 if the entity is active and in good standing, but the filing is due by December 31 each year. Missing it has real consequences. Under Minn. Stat. 322C.0705, an LLC that fails to file by December 31 is terminated or revoked without further notice. Reinstatement costs $65 by mail or $85 online or in person under the current fee schedule. A corporation that misses the deadline is dissolved under Minn. Stat. 302A.821 and must go through reinstatement.

Put the December 31 deadline, your DBA renewal date and your insurance renewal date on one shared calendar.

Tips and common mistakes to avoid

• Assuming no state license means no rules. The absence of a state license shifts the work to cities, insurers and your own contracts. It does not remove them.
• Checking only your home city. Every city and suburb you serve can have different point-of-sale rules. Check each one before you advertise there.
• Quoting fees from old web pages. City evaluator fees and applications change. Confirm St. Paul and Minneapolis requirements with the city before you budget.
• Using a PO box as your registered office. The state does not accept a PO box alone as the registered office.
• Skipping DBA publication. A filed assumed name that was never published may be invalid, which can undermine contracts signed under that name.
• Doing repairs without a trade license. Electrical and plumbing work requires DLI licensing, and HVAC contractors must file a mechanical bond with DLI. Confirm the scope before you accept repair jobs.
• Letting insurance lapse or going uninsured. A single uninsured claim can cost far more than a year of premiums.
• Missing the December 31 renewal. Reinstatement costs more than the renewal itself, and an administratively terminated entity can create problems with bank accounts and contracts.

Expected results

Working through these steps in order often leaves you with a formed entity, a tax registration, the right city paperwork for each market you serve, and insurance that matches your services. Those pieces may take several weeks, depending on how quickly the agencies respond and how many cities you target. Treat the timeline as an estimate, not a promise.

Completing the paperwork does not guarantee clients or revenue. What it typically does is remove the most common reasons a new inspection business gets stopped, delayed or sued. Inspectors who keep clean records, carry adequate insurance and stay current on city rules tend to be in a stronger position when a sale closes and questions come up.

Where to confirm the details

• Minnesota Secretary of State: sos.mn.gov, with business search and online filing at mblsportal.sos.mn.gov/Business/Search
• Minnesota Department of Revenue: revenue.state.mn.us
• Minnesota Department of Health (radon licensing): confirm current fees and program details directly with MDH
• Minnesota Department of Labor and Industry (trade licensing): confirm which repair activities require a license
• Minnesota Department of Commerce licensing office: confirm that no state license applies to general home inspections
• License Minnesota: mn.gov/elicense
• Minnesota Small Business Development Center Network, run by the Department of Employment and Economic Development: mn.gov/deed/business/help/sbdc
• U.S. Small Business Administration, Minnesota district: sba.gov/district/minnesota

When to talk to a professional

Talk with a Minnesota attorney before you choose a structure, sign a franchise or partnership agreement, or write inspection contracts with liability limits. Talk with a CPA about LLC or corporation tax treatment, the minimum fee, and whether your fees are subject to sales tax. An attorney can also review your inspection agreement and your approach to repair referrals.

This article is informational content, not legal or tax advice. Verify every fee, deadline and license requirement with the named agency before you act on it.