How to Start a Roofing Business in Minnesota: The Residential Roofer License and $15,000 Bond

If you are looking for a Minnesota roofing contractor license, the short answer is this: roofing is the one single-skill trade in Minnesota that must be licensed on its own. A company that contracts directly with the owner of a 1 to 4 unit home for roofing work needs a residential roofer license from the Minnesota Department of Labor and Industry (DLI), or a building contractor or remodeler license that covers the work. This guide walks through the residential roofer route, which covers roofing only, and the $15,000 surety bond that comes with it.

Minnesota has no general statewide business license. Filing your company with the Secretary of State is a filing, not a license. Registering with the Department of Revenue is a tax registration, not a license. The roofer license is the trade license you actually need, and DLI issues it.

What you need before you start

Gather these items before you open the DLI application. Most delays come from missing paperwork, not from the state review.

• A legal business name, and an entity filed with the Secretary of State if you form an LLC or corporation
• A federal Employer Identification Number (EIN), which most LLCs and corporations need
• A Minnesota Tax ID and a Sales and Use Tax account from the Department of Revenue
• One qualifying person who will sit for the DLI exam
• A $15,000 contractor surety bond from a surety company
• General liability insurance at $300,000 per occurrence, including $10,000 property damage
• Proof of workers' compensation coverage, or a written exemption
• A BCA background check form completed by each owner and officer
• Payment for the license fee, the Contractor Recovery Fund fee and the exam fee

Step 1: Confirm you need the residential roofer license

The residential roofer license applies when your company contracts directly with the owner of a 1 to 4 unit home for roofing work. Three points matter here:

• The roofer license covers roofing only. It does not let you contract gutters, soffit or fascia.
• Roof penetrations for solar installations count as roofing. If your crew cuts into the roof deck to mount solar racking, that work falls under the roofer license.
• A building contractor or remodeler license is the alternative if you plan to do broader remodeling. Compare the scope of each license on the DLI site before you choose.

If your roofing work is for a general contractor rather than the homeowner, confirm with DLI which license applies to your role. The answer changes the paperwork you file.

Step 2: Form your business entity

You can operate as a sole proprietor, but most roofing companies form an LLC so that business debts and contract claims stay separate from personal assets. An LLC is formed by filing Articles of Organization under Minnesota Statutes, Chapter 322C, with the Minnesota Secretary of State at the Business Filings Online portal. The filing fee is $155 online or in person, which is expedited service, and $135 by mail, which is not. The Secretary of State does not publish a guaranteed turnaround in business days.

First-time filers run into these points most often:

• The name must contain the words limited liability company or the abbreviation LLC. It cannot contain corporation or incorporated, or their abbreviations.
• The name must be distinguishable from every domestic LLC, LLP, corporation and limited partnership on the Secretary of State records. Search the business database before you file.
• Forming an LLC does not require newspaper publication. Only assumed names (DBAs) do.
• The LLC needs a registered office at a Minnesota street address. A PO box alone is not accepted. Naming a registered agent is optional for a Minnesota LLC.
• The LLC files an Annual Renewal every year. It costs $0 if the entity is active and in good standing, and it is due December 31. Missing that date results in termination of the LLC without further notice under Minn. Stat. 322C.0705. Reinstatement costs $65 by mail or $85 online or in person.

If you will work under a name other than your legal name, such as Northside Roofing LLC operating as Northside Roof Pros, you need a Certificate of Assumed Name. It costs $50 online or in person, or $30 by mail, and it must be published for two consecutive issues in a qualified legal newspaper in the county of your principal place of business. Failure to publish may make the certificate invalid. Renew it annually at no charge. Details are at the Secretary of State's assumed name page.

Use the exact legal name from your Secretary of State filing on every later document: the DLI application, the bond, the insurance certificate and your tax registration. A name mismatch is one of the simplest ways to stall the file.

Step 3: Register for taxes

Before you make taxable sales, register with the Minnesota Department of Revenue for a Minnesota Tax ID and a Sales and Use Tax account. Start at the Revenue business registration page. The Revenue registration is a tax step, not a license, so it does not replace the DLI license.

Two tax points to raise with a CPA:

• The state sales tax rate is 6.875 percent, and local sales taxes apply on top. Ask Revenue how the tax applies to the labor and materials on your invoices, since that depends on how each job is structured.
• 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. An LLC 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 C corporations, S corporations and partnerships, while single member LLCs that report only on the member's individual return are exempt.

Step 4: Name a qualifying person and pass the exam

The license belongs to the business, but a qualifying person must demonstrate roofing knowledge to DLI. That person passes a DLI exam for $50. There is no experience prerequisite to sit for it, so a new owner can take the exam before building a track record. Ask DLI for the current exam information before you schedule, and confirm what role the qualifying person must play in supervising the work. Choose someone who will actually oversee the crews, because that person's knowledge stands behind the license.

Step 5: Buy the $15,000 surety bond

The residential roofer license requires a $15,000 surety bond. A surety company issues the bond, and you pay the surety a premium. The premium is not a fixed state fee. It depends on your personal credit, business history and the surety's underwriting, so get quotes from more than one agent.

Check three things on the bond before you pay. The principal name must match your entity name exactly. The bond must be written for the license type you are applying for. And the bond must stay in force, because a lapsed bond can put your license at risk. Put the renewal date on your calendar the day the bond is issued. Confirm the exact bond form and wording on the DLI site.

Step 6: Carry the required insurance

Residential roofers must carry general liability insurance at $300,000 per occurrence, including $10,000 property damage. DLI lists the roofer limits separately from the building contractor limits, so make sure you are reading the roofer page when you brief your agent. Ask your agent for a certificate that matches those limits. Also ask whether the policy covers the specific work you plan to sell, including solar roof penetrations if you intend to do them.

Step 7: Provide workers' comp proof and BCA background forms

Provide proof of workers' compensation coverage, or a written exemption, as DLI requires. If you plan to hire crew, plan on carrying coverage from the start. If you will work alone with no employees, ask DLI and your insurer which exemption applies and what paperwork it requires.

Each owner and each officer must complete a BCA background check form. Every person gets their own form, so do not assume one filing covers the whole team. Collect these early, because background results can take time and they are a common reason an application waits.

Step 8: Submit the application and pay the fees

The fees below are as of 2026. Confirm each one at dli.mn.gov before you pay, since fee schedules change.

Item	Amount	Notes
Residential roofer license (initial)	$180	DLI license fee
Contractor Recovery Fund fee	$320, $420 or $520	Set by gross receipts: $320 under $1 million, $420 for $1 million to $5 million, $520 above $5 million (Minn. Stat. 326B.89). Check with DLI which receipts figure sets your tier.
Qualifying person exam	$50	No experience prerequisite
Surety bond	$15,000 bond amount	The premium you pay the surety varies and is not a state fee
License renewal	$185	Includes a $5 continuing education fee. Confirm the renewal schedule with DLI.

Budget for the license, the recovery fund fee, the exam and the bond premium together before you commit to a start date. The bond premium and insurance cost are the two items most likely to surprise a first-time applicant.

Step 9: Check city and county requirements

A DLI license does not replace local permits. Minnesota has 87 counties, about 853 cities and about 1,780 townships, and each one sets its own building permit rules. Ask the building department in the city where the job sits whether a re-roof needs a permit, and whether they will want to see your DLI license before issuing one. If the job is in a township, ask the township clerk or the county which office issues the permit.

Minneapolis and Saint Paul license by category, and neither issues a general business license. If your company will operate in either city, check whether roofing contractors need a category license there, and confirm the requirement with the city before you take a job.

Common mistakes to avoid

• Treating the Secretary of State filing or the Revenue registration as the license. Each is a separate step, and neither one authorizes you to contract roofing work.
• Bidding gutters, soffit or fascia under a roofer license.
• Forgetting that solar mounting penetrations count as roofing work.
• Promising to pay or rebate a homeowner's insurance deductible. Minn. Stat. 325E.66 prohibits contractors from promising to pay or rebate an insurance deductible, so keep that language out of your sales pitch and your contracts.
• Using different names across the Secretary of State filing, the DBA, the bond, the insurance and the DLI application.
• Letting the bond or insurance lapse, or missing the LLC Annual Renewal due December 31.
• Using the building contractor insurance limits when the roofer page sets its own.
• Skipping the city permit and starting work before it is issued.

What to expect once you are licensed

Once DLI approves your application and your bond and insurance are on file, you can contract residential roofing work under the license. Have the bond, insurance certificate and BCA forms ready before you submit. DLI does not guarantee a processing time in this guide, so check with DLI for the current timeline before you schedule your first job.

Expect the paperwork to continue after approval. Keep the license current, renew the bond and insurance on time, track the LLC Annual Renewal, and keep job files with contracts, permits and inspection records. That documentation is what protects you if a homeowner dispute arises.

Useful Minnesota resources

• Minnesota Department of Labor and Industry, the residential roofer license and exam: dli.mn.gov
• Minnesota Secretary of State, business search and filings: sos.mn.gov
• Minnesota Department of Revenue, tax registration and rates: revenue.state.mn.us
• License Minnesota, a lookup of licenses by trade and agency: mn.gov/elicense
• Minnesota Small Business Development Center Network, business advising: mn.gov/deed/business/help/sbdc

Important disclaimer

This article is informational, not legal or tax advice. Licensing rules, fees, bond terms and tax treatment change, and the figures above should be confirmed with the agencies named before you act on them. Where the answer depends on your situation, such as subcontracting for a general contractor, working across several license types, or the tax treatment of your invoices, consult a qualified attorney or CPA.