State guide · Minnesota
Starting a Medical Practice in Minnesota
What physicians need to know about Minnesota's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Firm (PA, PC, or PLLC)
LLC permitted
No
CPOM enforcement
Moderate
Top income tax
9.85%
Min. franchise tax
None (corporate AMT may apply)
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
Minnesota physicians may form a Professional Firm under Minn. Stat. Chapter 319B, which permits PCs, PAs, or PLLCs. All owners must be licensed Minnesota physicians.
Filing is with the Minnesota Secretary of State.
- •Form a Professional Firm under Chapter 319B (PC, PA, or PLLC structure)
- •All owners must be licensed Minnesota physicians
- •File Articles of Incorporation or Articles of Organization with the Secretary of State
- •File Annual Renewal with the Secretary of State
Corporate Practice of Medicine
Minnesota recognizes a moderate Corporate Practice of Medicine doctrine via Chapter 319B (Professional Firms Act). Fee-splitting is prohibited.
Tax Considerations
Minnesota has a graduated personal income tax with a top bracket of 9.85% — among the highest in the country. PTE election available.
- •Top personal income tax: 9.85%
- •No franchise tax (corporate AMT may apply)
- •Pass-Through Entity Tax election available
- •6.875% statewide sales tax
Minnesota Board of Medical Practice
Minnesota does not require entity registration with the Board of Medical Practice for general practices. Individual physicians are licensed.
- •No general entity registration required
- •All practicing physicians must hold an active Minnesota medical license
Employment Law Considerations
Minnesota has expanded employee protections recently. Earned Sick and Safe Time (ESST) requires paid sick leave for most employers. Minnesota Paid Family and Medical Leave (PFML) benefits begin in 2026.
- •Earned Sick and Safe Time (ESST) — paid sick leave
- •Minnesota Paid Family and Medical Leave: contributions begin 2026
- •Non-competes banned for employees signed after July 2023 (Minn. Stat. §181.988)
- •Minnesota minimum wage adjusts annually
- •Pay transparency required on job postings (effective 2025)
Heads up
Minnesota banned most non-compete agreements signed after July 1, 2023. Verify with counsel before requiring any new physician non-compete.
Official resources
Bookmark these official agency portals for Minnesota entity formation, tax registration, and medical board information.
Looking for Minnesota licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for Minnesota.
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