Fractional CFO Services in Minneapolis-St. Paul
Fractional CFO and controller services for Minneapolis-St. Paul construction, contractors, distribution, manufacturing, and service businesses.
Minnesota Coverage
Fractional CFO and Controller services for Twin Cities businesses.
Vessel Advisors supports businesses across Minneapolis, St. Paul, and the broader Twin Cities metro — medical device and life sciences suppliers, manufacturers, food and agribusiness operators, professional service firms. Our team includes CFOs and Controllers local to the Twin Cities, backed by a vetted national bench of senior finance leaders who support businesses that need expert help.
The Twin Cities have one of the most concentrated corporate footprints in the country — Medtronic, General Mills, Cargill, Target, 3M, U.S. Bank — and a mid-market business base built to serve and supply that footprint. The finance-function sophistication expected here reflects it.
How can we help?
What’s going on in your business and where would you like help?
An Inc. 5000 Fastest-Growing Private Company for two consecutive years.
The Market
The corporate density here sets a high bar for the companies that supply and partner with it.
The Twin Cities have more Fortune 500 headquarters per capita than almost any US metro. The business base built around those companies — medical device suppliers, contract manufacturers, food and agribusiness partners, professional service firms — is expected to operate at a level of financial sophistication that matches its enterprise customers.
What we see most from a finance standpoint: medical device suppliers scaling into ISO- and FDA-regulated reporting requirements; food and ag operators managing complex commodity and channel mix; contract manufacturers whose accounting infrastructure hasn't kept up with the size of the customer relationships they're now serving; and family-owned operators in industries with long tenure preparing for generational transitions or sales.
What we see most:
- Medical device and life sciences suppliers serving the Medtronic-adjacent ecosystem.
- Manufacturers and industrial suppliers across the broader Upper Midwest.
- Food, beverage, and agribusiness operators — production, processing, distribution.
- Professional service firms — engineering, consulting, IT services — scaling with corporate demand.
- Family businesses and multi-generational operators preparing for the next stage.
Industries
Where we work most in Minnesota.
Medical device and life sciences
Medical device manufacturers, life science suppliers, and healthcare-adjacent operators serving the Medtronic ecosystem and beyond. FDA and ISO compliance, cost accounting, and the reporting depth enterprise customers expect. More on how we serve technology and growth-stage companies.
Manufacturing and industrial
Contract manufacturers, industrial suppliers, and specialty producers across the Upper Midwest. Inventory accuracy, gross margin visibility, standard cost discipline. Our manufacturing case study shows the pattern.
Food, agribusiness, and consumer products
Food and beverage manufacturers, ag operators, and CPG brands serving retail and enterprise customers. Trade spend, channel margin visibility, co-manufacturer cost accounting, and the reporting depth retail relationships require.
Professional services and family businesses
Engineering, IT services, consulting firms, and family-owned operators across the metro. Utilization economics, engagement-level profitability, and succession-ready financial infrastructure. More on how we serve family-owned businesses.
Minnesota Taxes and Compliance
Minnesota's top individual income tax rate is 9.85%. The 2026 tax bill revived the pass-through entity tax at that rate through 2027.
The same bill, signed May 27, 2026, moved federal conformity to May 1, 2026 and treats research costs differently for C corporations than for pass-through owners. Sales tax tops 9% in Minneapolis, St. Paul and Bloomington, and employers now pay Paid Leave premiums and provide earned sick and safe time.
Taxes
Individual income tax
5.35% to 9.85% for individuals
S corporation and partnership income reaches owners at these rates, and the top one starts above $203,150 for a single filer in 2026. Net investment income over $1,000,000 carries another 1%. State law bars cities from imposing a new income tax, and Minneapolis, St. Paul and Bloomington levy none.
Corporate franchise tax
9.8%, with a 5.8% alternative minimum tax
C corporations pay 9.8% of Minnesota taxable income. When 5.8% of alternative minimum taxable income comes to more, the difference is owed as alternative minimum tax.
Minimum fee
Up to $12,830 for 2026, S corporations included
The fee is set by the sum of Minnesota property, payroll and sales, from $0 below $1,280,000 to $12,830 at $51,280,000 or more. C corporations owe it on top of the franchise tax, and S corporations and partnerships owe it even when their owners pay all the income tax. Partnerships with more than 80% of income from farming are exempt.
Pass-through entity tax
9.85% at the entity level, through 2027
The tax lapsed after 2025. The 2026 bill revived it retroactively to January 1, 2026, and it now ends after tax year 2027. A partnership or S corporation elects each year by the return due date, extensions included, with approval from owners holding more than 50%, and the election binds every qualifying owner.
Federal conformity
The federal code as of May 1, 2026
C corporations add back 80% of the federal domestic research deduction and subtract a quarter of that addback in each of the next four years. Individuals and pass-through owners expense research costs in full. Bonus depreciation is still an 80% addback, the new federal write-off for qualified production property is not added back, and federal §179 limits now apply.
Sales tax
9.025% in Minneapolis, 9.875% in St. Paul
Bloomington's rate is also 9.025%, including the 0.5% city tax it added on April 1, 2024, the day St. Paul's city rate rose to 1.5%. All three rates include the 1% metro-area tax that began October 1, 2023.
Employers
Minimum wage
$16.37 an hour in Minneapolis and St. Paul
Minneapolis applies $16.37 at every employer size, and St. Paul applies it to employers with more than five employees; St. Paul's smallest employers pay $14.25 until July 1, 2027, when they reach $15.00. Bloomington follows the state rate of $11.41, which rises to $11.87 on January 1, 2027. Minnesota allows no tip credit.
Earned sick and safe time
48 hours a year, at every employer size
Employees who work 80 or more hours a year in Minnesota accrue one hour per 30 worked, up to 48 a year, with an 80-hour balance cap unless the employer agrees to more. A 2025 amendment lowered the documentation trigger: an employer may now require documentation only after more than two consecutive scheduled work days, not three.
Minnesota Paid Leave
0.88% of wages for 2026 and 2027
Employers may collect up to 0.44% from employees. Employers with 30 or fewer employees and an average wage no more than 150% of the statewide average pay 0.66%. Premiums and wage detail reports are due quarterly, the first on April 30, 2026, and Minnesota has no separate state disability insurance.
Retirement plan mandate
Secure Choice registration by December 31, 2026 at 50 to 99 employees
Employers with five or more covered employees and no qualified retirement plan register and facilitate payroll IRA contributions, or certify an exemption. The deadline for 100 or more employees passed on June 30, 2026. Employers with 25 to 49 employees follow on June 30, 2027, 10 to 24 on December 31, 2027, and five to nine on June 30, 2028.
Hiring rules
Pay ranges in job postings at 30 employees
Since January 1, 2025, employers with 30 or more employees at one or more Minnesota sites list a starting salary range, or a fixed rate, and a general description of benefits in every posting. Employers of any size may not ask about or consider an applicant's pay history.
Unemployment insurance
$44,000 wage base in 2026
New employers' rates are set by industry: 1.00% for most sectors, and 1.98% to 8.90% in construction, depending on the trade. Highway, water and sewer, concrete foundation, masonry and site preparation contractors start at 8.90%.
Construction
Prompt pay and retainage
10 days down the chain, 5% retainage cap
On private jobs, each tier pays the next within 10 days of being paid for undisputed work, with interest at 1.5% a month, and an unpaid party may suspend work after 10 days. Minnesota sets no deadline for a private owner's payment to the general contractor. For agreements since August 1, 2019, private retainage is capped at 5% and released within 60 days of substantial completion.
Mechanics' liens
120 days to record a lien statement
Subcontractors and suppliers give the owner a pre-lien notice within 45 days of first furnishing, except on a nonresidential improvement that adds more than 5,000 usable square feet or is made to a property that already has more than 5,000. The lien statement is recorded within 120 days after the last work or materials, and a suit to foreclose must start within one year of the last item furnished.
Questions Minneapolis–St. Paul owners ask
Can we still use non-competes in Minnesota?
No. Non-competes entered on or after July 1, 2023 are void, for employees and independent contractors alike, except in the sale or dissolution of a business. Nondisclosure, trade-secret and customer non-solicitation agreements fall outside the ban. Since July 1, 2024, a service provider also can't bar its customers from soliciting or hiring the provider's employees, a rule that matters to agencies and professional services firms.
How quickly does a departing Minnesota employee have to be paid?
A discharged employee's wages are due immediately on demand, and an employer that hasn't paid within 24 hours of the demand owes a penalty of up to 15 days of average daily earnings. An employee who resigns is paid by the first regularly scheduled payday after the last day. If that payday is less than five calendar days away, the second payday is allowed, as long as it falls no more than 20 calendar days after the last day.
Can a Minnesota company get its R&D credit back as cash?
Partly. The credit is 10% of the first $2,000,000 of Minnesota qualified research spending above the base and 4% above that, open to corporations, partners and S corporation shareholders. An unused credit is 19.2% refundable for 2025 and 25% for 2026 and 2027, but only when the election is made on a timely return, extensions included. Whatever isn't refunded carries forward 15 years.
Do we owe Minnesota tax on our equipment and inventory?
No. Minnesota exempts all personal property except a short list that includes utility generation, transmission and distribution property, pipelines, railroad docks and manufactured homes. A manufacturer's or distributor's equipment and inventory aren't taxed, and there is no personal property return to file.
Does the 2026 tax bill change our 2025 Minnesota return?
It can. The new conformity date applies federal changes from the dates they took effect federally, and the C corporation research addback applies to tax years beginning after December 31, 2024. The Department of Revenue has said it won't adjust returns for these items, and affected taxpayers amend once updated forms are out. Refund claims filed on or after May 28, 2026 are allowed within 3½ years of the return's due date, extensions included, or 2 years after payment.
Can I inherit the seller's unpaid taxes when I buy a Minnesota business?
Only in a narrow case. The successor rule covers sales, withholding and petroleum taxes, and it applies when more than half of the seller's property changes hands outside the ordinary course and the Department of Revenue has filed a tax lien against the seller. The buyer then notifies the department at least 20 days before paying or taking possession, and a buyer who pays without withholding is liable up to the purchase price. If the department doesn't respond within the 20 days, the buyer is liable only for the liened amounts. See how we work with newly acquired businesses.
When does an out-of-state seller have to collect Minnesota sales tax?
Once it makes 200 or more retail sales, or more than $100,000 of retail sales, into Minnesota over the prior 12 months. Marketplace providers follow the same thresholds, and neither changed in 2025 or 2026. Prewritten software is taxable in Minnesota, including when it is delivered electronically.
Figures verified October 2026 against the Minnesota Statutes and Laws 2026, chapter 128, the Minnesota Department of Revenue, the Department of Labor and Industry, Unemployment Insurance Minnesota, Minnesota Paid Leave, Minnesota Secure Choice and the cities of Minneapolis and St. Paul. This is general information, not tax or legal advice.
Minneapolis–St. Paul Finance Talent
Median pay for Twin Cities financial managers sits within 1% of the national figure.
The Bureau of Labor Statistics counts 12,460 financial managers, the category that covers controllers and finance directors, in the Minneapolis-St. Paul-Bloomington metro. Their median pay of $165,620 is level with the national median of $166,570. Accountants and auditors earn a median $86,500, above the national $83,680, while the 90th percentile for financial managers is $293,100, below the national $323,270.
The metro has 6,279 business locations with 50 to 499 employees, according to Census, and their searches for controllers and finance directors draw on that pool of 12,460. A company that needs CFO judgment doesn't have to win one of those searches to get it.
Sources: U.S. Bureau of Labor Statistics, Occupational Employment and Wage Statistics, May 2025, Minneapolis-St. Paul-Bloomington, MN-WI MSA. U.S. Census Bureau, County Business Patterns 2023 and Vintage 2025 population estimates.
How we engage.
When It's Broken
Put out the fire.
Interim CFO & Controller. At the loss of a key employee. When things crash or break. We deploy interim professionals — repairing what's broken and keeping the system running while you decide what's next.
When You're Building & Exiting
Advise and serve.
CFO, Controller & Accounting Team. Right-sized financial leadership — and the team to execute. Embedded for the long run. The CFO Power Team: right roles, right cost.
When You Don't Know What You Don't Know
Assessment services.
Financial Discovery Assessment. A structured deep-dive that reveals where your finance function stands today — and what it needs to support where you're going.
Transaction Readiness Assessment. Will the books and reporting tell the right story to a buyer or investor — and do the systems and processes support merger or acquisition activities?
Coverage
We cover the Twin Cities.
Our team includes CFOs and Controllers based in the Twin Cities. We staff engagements with local presence and pull in the vetted national bench when scope requires additional depth. Coverage area: Minneapolis, St. Paul, Bloomington, Plymouth, Eagan, Woodbury, Edina, Maple Grove, and the broader Twin Cities metropolitan area.
Nearby coverage: Milwaukee and Southeast Wisconsin, Kansas City, and Chicago and the Midwest.
Call the team
866-324-4473Our Proprietary Diagnostic
The Financial Discovery Assessment shows you what’s working, what’s missing, and the plan to get where the business needs to go.
Every Assessment applies the same structured examination — accounting systems and technology, processes and procedures, team members and team structure, and team-member will-skill — refined across hundreds of engagements in businesses that look like yours.
The output is the Financial Heat Map System: dollarized findings, hidden inefficiencies, and a sequenced plan. It’s presented at the Executive Action Meeting, where your stakeholders review findings and recommendations in non-clinical, non-technical language they can act on.
We’ve walked into hundreds of businesses at the stage yours is in now. We know where to look. We know how to fix what we find.
Prefer to call? 866-324-4473