How To Start An LLC In Maine 2024?
Reviewed by Jazmin Castello - MBA
The article is checked by our editorial team, Which includes entrepreneurs who are painfully aware of how overwhelming and challenging it is to start a business for the first time.
The main reason for forming a Limited Liability Company[1] is to limit your liability for business debts and lawsuits. However, there are several other advantages including flexibility when it comes to management, ownership, and taxation. If you’re just starting a business or you have been operating as a sole proprietor in Maine, you need to consider forming an LLC. However, the process of forming a Maine Limited Liability Company can sometimes overwhelm you. That is why we have decided to offer a step-by-step guide and helpful resources on how to start an LLC in Maine. We will start by highlighting the filing requirements[2] and all the costs involved.
5 Basic Steps To Start An LLC In Maine 2024
- Choose a name for your LLC
- Choose a registered agent
- File articles of organization
- Create an LLC operating agreement
- Obtain an EIN
How To Start An LLC In Maine?
Here are the 5 key steps you need to follow when forming an LLC in Maine:
Choose A Name For Your LLC
Choosing an LLC name is the first step in forming your LLC in Pine-tree-state. Maine has naming requirements that you have to adhere to. In addition, the name you have chosen should be unique and easily searchable by potential customers.
When choosing a Maine LLC name:
Follow The Maine LLC Naming Guideline
Maine has some LLC naming guidelines[3] that you have to adhere to for your LLC name to be accepted. These guidelines include:
- The name phrase must include either “limited company,” “limited liability company,” or simply (LLC, LC, L.L.C., or L.C.) at the end.
- The name should not include words or phrases that can confuse the public with government agencies e.g. State Department, FBI, etc.
- Words such as University, bank, and attorney may require not only additional paperwork but also a licensed individual like a lawyer, a detector, etc.. to be part of your company.
- The name should also be unique and distinguishable from any other Maine LLC, LLP, partnership, or corporation.
Check For Name Availability
You need to check the name you are interested in on the Maine Secretary of State’s business name database to ensure it is not taken already by other LLC owners.
You also need to check if your business name is available as a web domain.
Choose A Registered Agent
A registered agent can be a person or business entity designated to receive important legal documents on behalf of your company. As long as you are 18 years old, you can serve as your registered agent or hire a professional.
However, hiring a professional will save you a lot of time to grow your business rather than staying in the office all the time waiting for government feedback.
Maine offers a long list of registered agents that you can choose from. Besides, they offer one of the best charges for registered agents in the industry.
You only need to sign up and you will immediately get logged into your online account. From your online account, you will see everything you need to make a filing with the state including the registered agent form. You can download the form and fill it out.
Once done, you can print it and deliver it in person or just send it via email to:
- Department of the Secretary of State
- Division of Corporations, UCC, and Commissions
- 101 State House Station
- Augusta, ME 04333-0101
File Articles Of Organization
This is known as the Certificate of Formation in Maine. You cannot form your LLC in Maine without filing a Certificate of Formation with the Secretary of State.
The form usually requires the following information:
- Name of your company.
- Filing date (you have the option of choosing a later date different from the date you file the paperwork).
- Your designation as either a low-profit LLC or a professional LLC (Complete only if you meet the required specifications).
- A registered agent (commercial or non-commercial).
- Any attachment you decide to include.
- A signature by one authorized person.
Once done, you can mail it to
Department of the Secretary of State
Division of Corporations, UCC, and Commissions
101 State House Station
Augusta, ME 04333-0101
Once the state approves your LLC application, your paperwork will be available within 10 – 18 days.
Create An LLC Operating Agreement
An LLC agreement is not a mandatory requirement in Maine but is highly advisable. It is an internal document that describes how your LLC will be run.
The document defines the responsibilities and the rights of each member of the company and the managers. In the absence of the LLC agreement, the state LLC law will govern how your LLC operates.
Obtaining An EIN
An Employer Identification Number (EIN) is also called a Tax ID Number. It is a requirement in Maine if an LLC has more than one member.
For a one-member LLC, you will need an EIN only if you have employees or if you choose to be taxed as a corporation, other than a sole proprietorship.
You can obtain an EIN by filling out an online application on the Internal Revenue Service website. There are no filing fees required.
Filing Requirements & Overall Maine LLC Costs
The cost to form an LLC in Maine can vary greatly depending on your business requirements. We have tried to exhaust all the necessary instances that you may have to incur some charges. If you are planning to start an LLC in Maine, this will help you figure out what to expect.
Maine LLC Filing Fees
The main cost of forming an LLC in Maine is filing a Certificate of Formation with the Secretary of State. The filing fee for the Maine LLC certificate of formation is $175. Compared to what other states offer, we can say this is average pricing.
Unlike other states that allow you to send your applications via mail or online, Maine only recognizes mail applications. To mail in your Certificate of Formation, send it to
Department of the Secretary of State
Division of Corporations, UCC, and Commissions
101 State House Station
Augusta, ME 04333-0101
Maine Registered Agent Fees
Every Maine LLC is required to nominate a Maine registered agent also called Maine Commercial Clerk. A registered agent is an individual or business entity tasked with receiving important legal documents for your business.
The registered agent must have a physical address in Maine. You can select a third-party individual, a member of your company, or even yourself.
But you don’t have to go through the hectic process of looking for your registered agent. Maine offers several registered agents to choose from at a generous price. You can find a list of their commercial registered agents on the Maine Department of State website.
Maine only charges an annual fee of $45 for a registered agent.
Other Maine LLC Filing Costs
There are several other LLC formation costs associated with LLC filing. Though most of these are not mandatory requirements, they are very important. These charges include:
Application For Name Reservation
Maine allows you to reserve a name for your LLC if you are not ready to form an LLC just yet. You may reserve a name for up to 120 days before your LLC formation and Maine only charges $20[1] for this service.
“Doing Business As” (DBA) Name
A DBA, popularly known as an assumed name in Maine is a mandatory requirement if you want your LLC to operate in Maine with a name other than your official name. Though some states also refer to it as a fictitious name, Maine preserves that name for out-of-state corporations authorized to transact business in the state.
That said, registering an assumed name will run you down $125. The DBA name must be renewed every 10 years.
Annual Report Fee
All LLCs in Maine must file an annual report with the secretary of state by June 1st to maintain good standing with the state. The initial annual filing must be between January 1 and June 1 of the year following the year in which your LLC was formed.
To apply online, you will need your LLC’s state charter number to access the form online. Otherwise, you can get a preprinted annual report form from the Maine Secretary of State website. Once completed, you can forward it via email.
For domestic LLCs, you will pay an $85 filing fee, while foreign LLCs are charged a $150 filing fee.
Business License Fee
Depending on where your LLC is located and your business type, your LLC may need a either local or state business license. For a local license, you can inquire about the charges from the clerk of the city or town where your LLC is located. For the state license, check with the Maine government Business Answer for the expected fees.
The Top 2 LLC Services
For peace of mind, you can choose a business formation service to undertake the process on your behalf. There are several LLC formation services out there, each claiming to offer the best service. But for Maine LLC formation, consider these two best services:
| ZenBusiness | IncFile | |
| Award | Best overall | Cheapest Entry Package |
| Detail | Read Review | Read Review |
| Link |
ZenBusiness
ZenBusiness is fairly new in the industry but is already the most preferred by most entrepreneurs. The company balances its services and pricing well.
Their best deal is the entry package which is only charged at $39 plus $175 state filing fees but includes great features. ZenBusiness is the only LLC formation service that will offer you free registered agent service, free operating agreement template, and LLC formation at this price.
For more advanced features, you will have to upgrade to their top packages which are also generously charged. Some of the most important features offered in their two top packages include worry-free compliance, domain name registration, EIN, and rush filing among other features.
ZenBiusiness also boasts outstanding customer feedback. In addition to their great features and pricing, most customers praise them for their great customer support services.
IncFile
Formed in 2004, IncFile is one of the cheapest LLC formation services you will find in the industry. With their entry package, you will only have the $175 state filing fees to worry about. The free entry LLC package is a 1-year registered agent and preparation and filing of the articles of the organization as well as unlimited phone and email support.
For more advanced features, you will have to upgrade to their two top packages which include a long list of features. Some of the key features included are custom operating agreement, EIN, lifetime company alert, banking resolution, and expedited filing, among others.
That said, this is a great service if you are budgeted and only require basic LLC formation. Their entry package is entirely free.
Final Thoughts
Forming an LLC in Maine can be very simple if you follow the steps that we have offered. Their charges for filing the article of organization and the registered agent services are reasonable, making it one of the best LLC formation options. If you are planning to form an LLC in this state, we hope you will find our guide useful.
Frequently Asked Questions (FAQs)
If your LLC has employees each employee will have to file an individual tax return. You will also incur sales tax if your LLC will be selling goods. You’ll need to register with Maine Revenue Services (MRS) online[4] on the MRS website.
Yes. You simply need to register with the Maine Secretary of State by filing a Statement of Foreign Qualification to Conduct Activities[1] (MLLC-12). The filing fee is $250. Registered agent and any other requirements for LLC remain the same.
ABOUT THE REVIEWER
+ 4 sources
Bizreport Advisor adheres to strict editorial integrity standards avoids using tertiary references. We have strict sourcing guidelines and rely on peer-reviewed studies, academic research. To ensure the accuracy of articles in Bizreport, you can read more about the editorial process here.
- Maine.gov. (2015). Maine Corporations Division. [online] Available at: https://www.maine.gov/sos/cec/corp/llc.html.
- Maine.gov. (2013). Title 31, §1508: Limited liability company name. [online] Available at: https://legislature.maine.gov/legis/statutes/31/title31sec1508.html.
- Maine.gov. (2022). Maine Corporations Division. [online] Available at: https://www.maine.gov/sos/cec/corp/helpful.html.
- Maine.gov. (2023). MTP – Maine Tax Portal. [online] Available at: https://revenue.maine.gov/_/.