Forming an LLC (Limited Liability Company) in Maine is easy and affordable. The following are few easy steps on how to start an LLC in Maine. LLCs form in two ways, domestic or foreign. Suppose you plan to set up an LLC in states other than Maine; visit How to Start an LLC for a quick list of the states.
On this page, you’ll learn about the following:
- How to Start a Maine LLC
- After Starting your Maine LLC
- Why an LLC in Maine
- Top 3 Businesses in Maine
- Maine LLC Formation Review
How to Start a Maine LLC
Suppose you’re planning to invest in some profitable business where you won’t have to put your personal assets at risk. Maybe you have a prospective business or corporation that you want to set up in Delaware. In that case, forming an LLC in Maine is the simplest option for you.
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. This section gives you a step-by-step guide on How to Start an LLC in Maine.
Step 1: Decide a Name for Your LLC
If you are to start an LLC in Maine, the first thing you do is decide on a business or company name, and how to name your LLC may be tricky. Take note, however, that any successful business started with coming up with a name. Thus, you have the option to choose a name that complies with the Maine business naming requirements. It must also be easily searchable for potential clients.
Why do you need a proper business name?
If you want your LLC to have special identification, your company name is essential. However, many people face many issues by avoiding focus on choosing a business name for their LLC business formation filings.
Here are some of the major benefits of choosing the best LLC names.
- Helps establish a company’s presence in the market;
- Creates a new identity that will resemble your LLC;
- Allows ease in finishing your LLC registration process;
- You can get the EIN once you have your name registration certificate
What are the requirements when deciding a name for your LLC?
A name search is vital to make sure your business’ name is unique. Check the availability of your name with Corporate Name Search on the Maine Secretary of State website. Reserve the name by completing the Application for Reservation of Name and send it to the Secretary of State Division of Corporations, UCC and Commissions 101 State House Station Augusta, ME 04333-0101.
- Don’t include words that could confuse people about your company. Words like ‘treasury, state department.’
- You should also avoid restricted words like ‘bank, attorney, university,’ because they may require a lawyer and more paperwork.
- As for a business website and your URL name, check if your name is still available for domain use with NameCheap.
Reserve a business domain
Even if you don’t have plans to set up a website today, it will help if you buy a domain to avoid others from using your name for their website, so do visit NameCheap for your domain name and Kinsta for web hosting.
If you have decided on your URL name and have reserved it, set up a professional email account with Google GSuite.
Step 2: Assign a Registered Agent Service in Maine
A registered agent for service is your authorized person or business entity that will act or work on your behalf. This person or business will receive significant tax forms, legal documents, a notice of lawsuits, and other official government correspondence in Maine. Choosing Maine-registered agents for your LLC is required.
Make sure your registered agents are residents of Maine. It could also be a business. Here are the recommended agents:
Our Rating & Pricing
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$49 + State Fees
$299 + State Fees
$399 + State Fees
These LLC formation services are recommended agents’ registered services as they are authorized to conduct business in Maine. Compare them to check the best yet cheapest option for you. Besides, these professional service providers can guarantee you 24-hour service because they have been in the business for years.
Step 3: File Certificate of Formation in Maine
A Certificate of Name Reservation is needed to file a Certificate of Formation, as other states call it. You need to make reports of this certificate with the Maine Secretary of State, which costs $175. You may file them online or by mail.
This Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in Maine, like if it is a member-managed or managers-managed. LLCs with employees can check the Maine state government website for the guidelines before they hire employees.
Before you start filing your forms, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your Maine LLC will offer.
How to File by Mail
If you prefer filing real-life forms for your Maine LLC registration, then you can download the Maine Limited Company Certificate of Formation, fill it out and send it to the Secretary of State Division of Corporations, UCC and Commissions 101 State House Station Augusta, ME 04333-0101.
Step 4: Create Your Maine LLC Operating Agreement
An operating agreement is a document that legally outlines the proprietorship or partnership and operating procedures of your LLC. This internal document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
Starting an LLC in Delaware does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all your details of business operation. This document would be useful if you decide to dissolve our Maine LLC later.
Step 5: Filing a Maine LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes and taxes in general. It is like a Social Security number dedicated to a business’ taxes. The EIN is necessary for any active business or any form of business for that matter.
It is also called a Federal Employer Identification Number (FEIN) or a Federal Tax Identification Number (FTIN). You will need this number for taxation filing and to determine tax classification options.
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
After Starting your Maine LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business account
- File Maine business permits & licenses
- Get liability for business insurance with coverage for employees
- File a Maine LLC annual report or biennial report
- Already existing LLCs that wish to operate in Maine must register as a foreign Maine LLC.
This page has provided you with steps to LLC formation and filing processes. You now have to remember the upcoming filing deadline and filing fee or filing cost, including fees for late filings to make sure your LLC is up-to-date.
Why an LLC in Maine
With a GDP of $56.8 billion, Maine has gained large popularity lately. Apart from the growing economy, the state currently has active LLCs in manufacturing industries, art, education, management, and other industries. The state offers diverse business funding options to start-ups. LLCs need to get business licenses to make any business transactions. Also, businesses get a reduction in tax liabilities and other tax benefits in Maine. The main advantages of starting an LLC in this state are as follows,
Creditors can get some silent rights
The first benefit of the LLC in Maine is that all the creditors get some silent rights under section 1573. It means that any creditor who is providing funds to an LLC member will be given interest based on the charging order. The creditor has all the rights to revive, and if in case that creditor doesn’t claim that silent rights, it will be provided to the member.
Formation of LLC is easy
When one is going to Start an LLC in Maine, then they have to file many documents. But in Maine, there is an act under which one doesn’t need to give their partners’ names in the papers. The name of members and the managers is required to be attached with the annual report only.
This way, the LLC member has a person who can file all the forms on behalf of their LLC, and they don’t have to go through hectic procedures. This person can be some legal authority or some other business also.
Duration of the LLC
When an LLC has formed in the Maine state, then the time duration for which that LLC will exist is perpetual. It means that no matter whether the founding member of the LLC is alive or not, the LLC will be registered and keep functioning for a more extended period of time.
Freedom of selection
There is a freedom of selection in the Maine LLC with the help of which one can create the voting and non-voting members. Along with that, they can also customize the members who can contribute to their profits and loss. It will help in setting the LLC on a path of success.
Moreover, when a contract is made, it is allowed for LLC to make changes in them easily. According to the Government Acts, one can easily make changes in proportion and tailor the risk and profit percentages to a smooth and better management system.
Top 3 Businesses in Maine
Maine is known as one of the best states in terms of providing the best business environment. That is why new entrepreneurs are deciding to form an LLC in Maine. But before you take any further action in your LLC, you should know which state’s most profitable industries are. Also, note the contribution that they have made towards the GDP of Maine. So, here is the list of the best ones.
It is noticed that the contribution of the healthcare sector of Maine to its economy is $10 billion in 2016, which is intended to increase in net years. The healthcare centers, or hospitals, have employed more than 35,000 people, which is roughly 8% of the total population that allows, which makes it one of the largest institutions around the state.
From the 18th century, shipbuilding has started in Maine State and has been a leading producer of wooden ships during World War 1. More than 200 companies in the state build all range of boats and yachts no matter what you require. Moreover, they also make ships for military, commercial purposes like battleships, cruisers, destroyers, etc.
Maine has also become a tourist spot with the beautiful coastlines and American history present in the state. The tourism sector’s contribution to the state GDP is near $10 billion and pays a tax of $600 million to the state. Moreover, other industries like restaurants, agriculture, and fisheries are also supported by tourism as tourists spend money in these sectors, making it a savior of other sectors.
Some small businesses that have flourished well in Maine are:
- Coffee shops
- Dairy and poultry farms
- Hotel online advertisements
Maine LLC Formation Review
Time needed: 1 hour and 5 minutes.
To recap, here are the easy steps again when forming an LLC in Maine. Click on the steps in this list to read the full detail.
- Name your Maine LLC
The first thing you must do is to choose a company name, which should include the phrase “limited liability company,” or one of its abbreviations (LLC or L.L.C.).
- Choose a registered agent
In Maine, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
- File a formation certificate
Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create operating agreement
An operating agreement is not a strict requirement but something encouraged when you start an LLC.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
A “domestic LLC” is one that conducts business in a state where it was formed. Meanwhile, a “foreign LLC” is an existing LLC that extended business to another state.
For Domestic LLCs, it is vital to have a Certificate of Name Reservation and Certificate of Formation. For the foreign LLCs, you must have a Certificate of Good Standing.
The cost to form an LLC varies per state.
Seldom do L.L.C.s use D.B.A. or a ‘Doing Business As’ name nor a fictitious business name. However, if you want to have one, you make read more about DBAs here.
This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
>Your name should have “L.L.C. or LLC” or the phrase “limited liability the business.”
>Do not include words that could create confusion between your LLC and any government business.
>Words like ‘bank, attorney, university’ are restricted as well.
>Lastly, your name should distinguish from other limited liability corporations, limited partnerships, or registered limited liability partnerships.
Typically, you can file your LLC name online or by mail. Check with the state where you will set up your LLC name. Take note that the fees for business names may also vary per state.
As for a website and your URL name, check if your name is still available for URL use with NameCheap to see if your name is available as a web domain. Even if you don’t have plans to set up a website today, it will help if you buy a URL. Buying it can help to prevent others from getting your name; check out WPEngine, Kinsta, and GoDaddy for hosting and building your website.
No. Never mail these documents or payments to the Secretary of State directly.
The reason you might need an E.I.N. is that it would help for three reasons:
>Opening a business bank account
>Filing and managing federal and state taxes
>Hiring employees or agents
You are not required a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
International EIN applicants do not need an SSN to get an EIN.