How to Invoice as a General Contractor in Minnesota

How to invoice as a general contractor in Minnesota: MN sales tax 6.88% (services usually exempt), late fees capped at 1.5%/mo under Minn. Stat. §334.01. Step-by-step guide with a free template.

State sales tax
6.88%
Late fee cap
1.5%/mo
Net terms
30 days
Deposit
25%

1. Minnesota-specific invoice requirements

  • Sales tax line: 6.88% state rate. Most services rendered in Minnesota are exempt from sales tax — but materials, parts, and tangible goods are not. State 6.875%; combined 7-8.875% in metros.
  • Late-fee cap: Minnesota statute Minn. Stat. §334.01 caps interest on unpaid invoices at 1.5% per month. Spell out the rate in writing on every invoice and in your contract — courts won't enforce undisclosed fees.
  • Right-to-cancel notice: Customers in Minnesota get 72-hour cancellation rights on certain home-services contracts. Disclose this in your terms.

2. General Contractor line items + standard terms

Every general contractor invoice in Minnesota should itemize work clearly. Standard general contractors use Net 30 terms with a 25% deposit required upfront.

  • Mobilization — billed by flat.
  • Labor — billed by hour (~$85 default).
  • Materials — billed by itemized.
  • Subcontractor markup — billed by percent.

3. General Contractor licensing in Minnesota

Most states require a general contractor license over a job-value threshold (varies $500-$50K). Bonding and insurance commonly required.

4. Send and follow up

Send the invoice the same day work completes. Use software that records open events and offers a one-click online payment so you don't need to chase a check by mail. Minnesota customers expect digital payment options today — accepting card and ACH typically reduces days-to-paid by 30–50%.

Average invoice
$4,850
State
MN
Net terms
30 days
Deposit
25%

Minnesota metro guides

Metro-specific guides include the combined sales-tax rate and local pricing benchmarks.

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