Is a Dropshipping Profitable in Minnesota?
The dropshipping industry in Minnesota is seeing significant growth as we head into 2026. Local demand for these services remains strong, driven by Minnesota's expanding economy and population. For entrepreneurs willing to follow the correct compliance steps, starting a Dropshipping offers a path to sustainable revenue and independence.
However, profitability depends entirely on proper legal structuring. Operating without a formal entity puts your personal assets at risk.
The 3 Legal Steps to Launch
To operate legally and avoid state fines, you must follow these three foundational steps. Skipped steps are the #1 reason for business application rejections in Minnesota.
Form an LLC (Limited Liability Company)
To officially form your LLC, you must file the 'Articles of Organization' with the Secretary of State.
Get Your Federal EIN
The current processing time in Minnesota is roughly 2-3 business days. You can skip this wait by using an expedited filing service.
Open a Business Bank Account
Never mix personal and business funds. Doing so ("piercing the corporate veil") can void your LLC protection. Use your EIN and LLC formation documents to open a dedicated account at a local Minnesota bank.
How Much Does It Cost to Start a Dropshipping Business in Minnesota?
The cost to open a Dropshipping business in Minnesota depends on your specific needs, but the legal filing fees are fixed. Here is the breakdown for 2026:
| Item | Estimated Cost |
|---|---|
| State Filing Fee (LLC) | $155 |
| Annual Report Fee | $0 |
| Report Due Date | Dec 31 |
| Notes & Hidden Costs | Must file renewal, but fee is $0 |
* Fees are payable to the Secretary of State and are subject to change.