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Minnesota · MN

Business Banking for Auto Dealers in Minnesota

Free business checking with 1.75% APY, built-in accounting, and unlimited sub-accounts for auto dealers in Minnesota.

Starting an Auto Dealership Business in Minnesota

State Tax Rate

5.35%–9.85% (graduated)

LLC Filing Fee

$155 (LLC)

Major Markets

Minneapolis, St. Paul, Rochester, Duluth

Key Requirements in Minnesota

Dealer license required from the Minnesota DMV or motor vehicle division
Surety bond required (amount varies by state, typically $10,000–$50,000)
Must maintain a physical dealership location with proper signage
Compliance with FTC Used Car Rule and state lemon laws
Sales tax collection and remittance required in Minnesota

Best Banks for Auto Dealers in Minnesota

Compare Minnesota's top business banking options for auto dealers.

1

Holdings

$0/mo · 1.75% APY

Free business checking with built-in AI accounting, unlimited sub-accounts, and FDIC insurance up to $3M. Available nationwide including Minnesota.

Key Features

  • Free business checking
  • Built-in AI bookkeeping
  • Unlimited sub-accounts
  • 1.75% APY on all balances

Pros

  • No fees, no minimums
  • Accounting included free
  • FDIC insured up to $3M

Cons

  • No physical branches
  • No cash deposit
2

Bremer Bank

Regional bank

Best for: auto dealers wanting an established Minnesota bank

Pros

Upper Midwest focus, strong ag and commercial lending

Cons

Moderate fee structure

3

Bridgewater Bank

Community bank

Best for: auto dealers in the Twin Cities

Pros

Twin Cities focused, business-first banking

Cons

Limited to Minneapolis/St. Paul metro

4

Alerus Financial

Regional bank

Best for: auto dealers in northern Minnesota

Pros

Minnesota/North Dakota, strong business services

Cons

Smaller branch presence

Why Auto Dealers in Minnesota Choose Holdings

Free Business Checking

No monthly fees, no minimums, no hidden costs. Every dollar stays in your business.

Built-In AI Bookkeeping

Automatic transaction categorization, real-time P&L and balance sheet. No QuickBooks needed.

1.75% APY on Every Dollar

Your operating funds earn interest while they sit. No tiered rates, no caps.

Unlimited Sub-Accounts

Organize funds by job, project, or purpose. Track payroll, taxes, and expenses separately.

Auto Dealers Banking in Minnesota — FAQ

How do I get an auto dealer license in Minnesota?

To become a licensed dealer in Minnesota, you'll need to: obtain a surety bond, secure a physical lot location, pass a background check, register your LLC ($155), and apply through the Minnesota Department of Motor Vehicles. Requirements vary for new vs. used car dealers.

What banking features do auto dealers in Minnesota need?

Auto dealers need banks that understand floor plan financing, high-value inventory transactions, and title processing. Look for business checking with high transaction limits, ACH capabilities for auction purchases, and AI bookkeeping that tracks per-vehicle profitability.

Do auto dealers in Minnesota need a separate business bank account?

Absolutely — Minnesota requires licensed dealers to maintain proper financial records. A dedicated business account is essential for tracking vehicle purchases, sales revenue, floor plan payments, reconditioning costs, and sales tax collection.

What insurance do auto dealers need in Minnesota?

Auto dealers in Minnesota need garage liability insurance, lot coverage (physical damage for inventory), workers' comp, and a dealer bond. Most floor plan lenders also require specific insurance coverage levels. Budget $5,000–$15,000/year depending on inventory size.

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Ready to open your account?

Holdings offers free banking with 1.75% APY for auto dealers in Minnesota. Open your account in minutes.

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