How Much Does It Cost to Start a Thrift Store in Minnesota?
Starting a Thrift Store in Minnesota typically costs between $19,600 and $196,000, with a median estimate of $73,500. Minnesota’s cost of living is 2% below the national average, which helps reduce operating expenses like commercial rent and labor. LLC formation in Minnesota costs $155 to file. Most thrift store businesses take 1-3 months to launch.
Last updated: March 2026
How Much Does It Cost to Start a Thrift Store in Minnesota?
Low
$19,600
Medium
$73,500
High
$196,000
National average: $20,000 – $200,000
Interactive Startup Cost Calculator
Startup Cost Calculator
Thrift Store in Minnesota
Options
One-Time Costs
$68,404
Monthly Costs
$0
First Year Total
$68,404
Full Cost Breakdown
| Cost Category | Low | Medium | High | Notes |
|---|---|---|---|---|
| Retail Space Lease & Build-Out | $7,840 | $29,400 | $78,400 | Thrift stores do well in lower-rent commercial spaces. A 3,000-5,000 sq ft location allows sufficient inventory volume. |
| Fixtures & Display Equipment | $2,940 | $9,800 | $24,500 | Used store fixtures are often available from closed retail stores at 50-80% off new prices. |
| Opening Inventory Purchase | $2,940 | $9,800 | $29,400 | Purchase lots from estate sales, storage unit auctions, and liquidation pallets to launch quickly. |
| POS & Inventory System | $294 | $1,470 | $4,900 | Square or Shopify POS works well for thrift stores. Full inventory tracking is impractical for donated goods. |
| Licenses & Permits | $98 | $784 | $2,940 | Most states require a secondhand dealer permit for reselling used goods. Some cities require individual item tagging with acquisition date. |
| Insurance | $784 | $2,450 | $6,860 | Slip-and-fall liability is significant in thrift stores. Property insurance covers inventory and fixtures. |
| Marketing & Donation Campaign | $490 | $2,940 | $9,800 | Building a strong donation pipeline is more valuable than paid advertising for thrift stores. |
| Working Capital Reserve | $3,920 | $11,760 | $29,400 | Thrift stores with consistent donation sources can break even quickly. The key is product quality and pricing. |
| Total Startup Cost | $19,306 | $68,404 | $186,200 | Required costs only |
Licenses & Permits in Minnesota
Licenses & Permits in Minnesota
General Business License
Minnesota does not have a statewide general business license. Businesses must register their entity with the Minnesota Secretary of State and register with the Minnesota Department of Revenue for sales and use tax and withholding tax purposes. Some Minnesota cities require local business licenses, though this varies by municipality. Minneapolis and Saint Paul have their own business licensing requirements. Many business types are regulated through specific licensing programs at the state level.
Industry-Specific Licenses
- Food Handler License — Minnesota Department of Agriculture or Local Health DepartmentCost: $100-$800 • Renewal: Annual
- Residential Building Contractor License — Minnesota Department of Labor and IndustryCost: $150-$500 • Renewal: Annual
- Cosmetology Salon License — Minnesota Department of Labor and Industry — Board of Cosmetologist ExaminersCost: $50-$150 • Renewal: Annual
- Real Estate Broker License — Minnesota Department of Commerce — Real EstateCost: $150-$400 • Renewal: Annual
- Child Care Center License — Minnesota Department of Human Services — Child Care LicensingCost: $50-$200 • Renewal: Annual
- On-Sale Intoxicating Liquor License — Minnesota Department of Public Safety — Alcohol and Gambling Enforcement or Local AuthorityCost: $300-$3,000 • Renewal: Annual
- Cannabis Retailer License — Minnesota Office of Cannabis ManagementCost: $2,500-$10,000 • Renewal: Annual
- Pesticide Business License — Minnesota Department of AgricultureCost: $50-$200 • Renewal: Annual
Home-Based Business Rules
Minnesota municipalities regulate home-based businesses through local zoning ordinances. Minneapolis allows home occupations in all residential zones with restrictions on customer visits, signage, and deliveries. Saint Paul has similar home occupation rules. Minnesota's rural areas are generally very accommodating of home-based businesses. The state's Cottage Food Law specifically supports home-based food production and direct consumer sales.
Monthly Operating Costs
After launch, plan for these ongoing monthly expenses for your Thrift Store:
Low
$3,000/mo
Medium
$8,000/mo
High
$22,000/mo
Revenue Potential
Annual Revenue Range
$80,000 – $700,000 (annual)
Profit Margins
20-40%
Break-Even Timeline
6-18 months
How Minnesota Compares to Neighboring States
Minnesota is close to the national average for Thrift Store startup costs, with a cost-of-living index of 98. Compared to neighboring Wisconsin ($71,250 median startup cost), Minnesota has higher costs for a Thrift Store.
| State | Est. Cost | LLC Fee |
|---|---|---|
| Minnesota (current) | $73,500 | $155 |
| Wisconsin | $71,250 | $130 |
| Iowa | $68,250 | $50 |
| South Dakota | $72,750 | $150 |
| North Dakota | $74,250 | $135 |
Common Mistakes to Avoid
- 1
Accepting all donated items indiscriminately — low-quality donations cost money to sort, display, and dispose of
- 2
Not pricing aggressively — thrift customers expect deals; overpricing drives customers away
- 3
Ignoring the online resale opportunity — high-value items on eBay and Poshmark dramatically increase revenue
- 4
Not creating a clear policy on what donations you accept — community confusion about acceptable items creates operational chaos
- 5
Underestimating inventory sorting labor — processing donated goods is time-intensive and often underestimated
Next Steps to Launch Your Thrift Store
- 1
Register your Thrift Store as an LLC with the Minnesota Secretary of State ($155 filing fee)
- 2
Apply for a Minnesota sales tax permit/seller's permit — thrift sales are taxable retail transactions
- 3
Obtain a Minnesota business license and local retail establishment permit for your thrift store location
- 4
If operating as a nonprofit, apply for 501(c)(3) tax-exempt status and Minnesota charitable registration
- 5
Establish donation intake policies, pricing guidelines, and a quality control process for all incoming merchandise
- 6
Get commercial property and general liability insurance for your retail store ($1,500–$3,500/year)
- 7
Set up your POS system — many thrift stores use Lightspeed or Square with barcode labeling for fast pricing
- 8
Create a consignor program or estate sale acquisition strategy to ensure consistent quality inventory flow
Frequently Asked Questions
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Start a Thrift Store in Other States
See the national overview for Thrift Store or browse all businesses you can start in Minnesota.