According to (SBA) or U.S. Small Business Administration, Maine has a thriving small business community, with over 147,000 small businesses making up 99.2% of all businesses in the state. If you’re considering starting a business in Maine, establishing a limited liability company is a perfect option. If you are now ready to learn how to start an LLC in Maine, here’s our guide to help you make the process easy.
Starting an LLC in Maine includes the following steps:
#1: Name Your Maine LLC
#2: Hire a Maine Registered Agent
#3: Get Your EIN
#4: File Your Certificate of Organization
#5: Create Your Operating Agreement
#6: Pay Legal Obligations and File Annual Reports
Maine LLC Specifications
- Registration: To register, file a certificate of formation with the Secretary of State. Include the LLC name, effective date, member/officer/manager designations, registered agent details, and an authorized entity’s name with a dated signature. Attach the completed letter sheet, downloadable from the Secretary of State’s website, along with the required filing fee.
- Forms and Fees: The certificate of formation filing fee is approximately $175. Expedited services cost $50 for 24-hour service and $100 for immediate service. Verify current fees with the Secretary of State.
- Timeline: Normal processing takes five to 10 working days. Expedited options include 24-hour and immediate turnaround.
- Naming Requirements: Ensure your LLC name is distinguishable and complies with specific word requirements. Check name availability before filing.
- Formation: Forming an LLC involves filing a certificate of formation with the Secretary of State.
If your LLC has multiple members, having a limited liability operating agreement in place is highly advisable.
If your LLC provides professional services, you may need to acquire specific licenses and permits from the professional licensing boards in your state.
Ready to start your LLC journey? Start an LLC now.
1. Name Your Maine LLC
Naming an LLC in Maine requires careful consideration and adherence to specific laws. Here are the key points to keep in mind:
- Your LLC name must be unique and distinguishable from other LLC or corporate business names.
- The name of your Maine LLC must include one of the following: “Limited liability company,” “Limited company,” “L.L.C.,” “LLC,” “L.C.,” or “LC.”
- If establishing a low-profit LLC, include “L3C” or “l3c” in the name.
- The words “limited” and “company” can be abbreviated to “Ltd.” and “Co.,” respectively.
To check the availability of your desired name, search the Secretary of State’s website for existing LLC names.
Reserve Your Maine LLC Name
If your chosen name is available, but you’re not yet ready to file the rest of your LLC paperwork, you can reserve it for 120 days by submitting an application to the secretary of state with a $20 fee. You cannot renew name reservations, so proceeding with the LLC formation process is important within the reservation period.
Additional Consideration:
URL Availability: Conduct an internet search to ensure a matching domain name is available for your preferred business name. While it may not seem crucial at the moment, having a dedicated webpage for your business can be a strategic move. By reserving your domain name now, you can secure it for future use when creating a website. Before finalizing your LLC name, it is essential to check the availability of the URL to ensure that you can obtain it for your business.
2. Hire a Maine Registered Agent
In Maine, registered agents play a vital role in the operations of an LLC. They are individuals or corporations authorized to conduct business within the state and possess permanent addresses therein. A registered agent’s primary duty is to receive legal documents on behalf of the Maine LLC and ensure timely notification of its members.
The registered agent must be at least 18 years old and have a physical address in Maine. Consider hiring a commercial registered agent. Typically, companies pay between $50 and $300 per year for this service, which is crucial to uphold legal compliance and ensure proper state registration for your company.
You can submit a Statement of Appointment or Change, which allows you to designate a commercial or noncommercial registered agent and change your registered agent later if needed. Please note that this process has a $ 35 filing fee.
Commercial vs. Noncommercial Registered Agents
In Maine, there are two types of registered agents for your LLC: commercial and noncommercial.
Companies that charge a fee provide registered agent services, known as commercial registered agents. These companies register with the State of Maine using a “public number.” While they require payment, they typically guarantee prompt delivery of your documents. You may have legal recourse if they fail to deliver due to the paid service.
On the other hand, noncommercial registered agents can be individuals you know, such as neighbors or family members. While choosing a noncommercial agent may save you money, there is a risk that they may not pass along important documents. It is important to choose a trustworthy agent for this role.
Opting for the cheapest online registered agent service may seem appealing, but checking online reviews is advisable to ensure their reputation. If your agent fails to deliver important legal documents on time, you may face penalties even if it’s not your fault. Investing in a reputable service may be worth the higher fee in the long run.
3. Get Your EIN
If your LLC has two or more members, you must obtain an EIN (Employer Identification Number) from the IRS for tax purposes.
4. File Your Certificate of Formation
To bring your LLC to life, you must file the official document known as the certificate of formation. This document encompasses your business planning, naming decision, and designation of a registered agent. You can file your Maine LLC certificate of formation by mail or FedEx/UPS using the addresses provided on the form. When completing the certificate, ensure you have the following information ready:
- Name of your LLC
- Effective date (which can be the filing date or a future date)
- If applicable, indicate whether your LLC is an L3C or a PLLC
- Provide the name and contact information of your registered agent (for commercial registered agents, include the name and CRA public number)
- Include any additional matters or attachments
- Provide your customer contact information
- Specify your preferred method of document retrieval (in person or by mail)
You can make the filing payment through a check, money order, or credit card voucher.
Expedited filing options are available for an additional fee:
- Process by the next business day for $50
- Process on the same business day for $100
Foreign LLCs looking to register in Maine should follow the same steps as domestic LLCs but file and submit a statement of foreign qualification to conduct activities instead of a certificate of formation. The filing fee for foreign LLCs is $250.
While the LLC filing process is relatively straightforward, ensuring accuracy from the start is crucial. Consider utilizing formation companies that can assist you with preparing and filing your paperwork for a nominal fee while guaranteeing that your documents will be accepted.
5. Create Your Operating Agreement
While not legally required, having a Maine LLC operating agreement is crucial for ensuring smooth business operations. It helps prevent confusion regarding important policies and procedures, especially if you have multiple members or employees. This can ultimately save you time and money. You can find free online resources that guide drafting an operating agreement. Typically, these agreements cover topics such as:
- Management
- Ownership
- Admission of new members
- Meetings
- Voting
- Contributions
- Compensation
- Dissolution
- Profit and loss distribution
Make sure to keep a signed copy of the operating agreement at your main place of business or office. It is also wise to have another copy stored at home or on a hard drive. People, including business partners, can be unpredictable. A legally binding operating agreement will protect your interests when conflicts arise.
6. Continue Legal Obligations and File Maine LLC Annual Reports
File annual reports with the Secretary of State by June 1 each year. These reports can be submitted online or by mail, accompanied by the required $85 filing fee. It’s important to note that filing fees may change, so it is advisable to check with the Secretary of State for the most up-to-date fee information.
Ensuring compliance with state legal requirements is essential if your LLC provides professional services.
Furthermore, please be aware that each state may have additional ongoing legal obligations. These obligations include state taxes, annual or biennial reports, and other requirements.
LLC State Guides
FAQs About How To Start an LLC in Maine
Can I file my LLC documents online in Maine?
Yes, you can file your LLC documents online through the Secretary of State’s website.
How long does it take to create an LLC in Maine, and can it be expedited?
The timeline for LLC formation in Maine can vary, typically taking several weeks. Nevertheless, expedited processing is an option for an additional fee, reducing the processing time to a few business days. Check with the Maine Secretary of State for current information on fees and timeframes.
What if I already have an LLC in another state and want to operate in Maine?
To operate your existing LLC in Maine, you must register as a foreign LLC. This involves filing the required forms and paying the necessary fees to gain legal recognition for conducting business in Maine.
What are the pros and cons of starting an LLC in Maine?
Pros include limited liability protection for LLC members, relatively straightforward compliance and reporting requirements, and taxation as a pass-through entity. Cons include high initial filing fees for LLC formation and the obligation to file an annual report and pay a fee in Maine.
How much does it cost to form a Maine LLC?
Forming a Maine LLC includes a $20 optional name reservation fee and a $175 certificate of formation fee. Additionally, you may hire a registered agent service for around $50 per year. Consider other potential expenses, such as purchasing a website domain or advertising in Maine newspapers to promote your business.
