How to Start an LLC in Maine (Step-by-Step Guide)

If you’re considering forming a Maine LLC, you’re making a smart choice for protecting your assets while enjoying flexibility in business operations.

To establish your LLC successfully, you must choose a unique business name, designate a registered agent, and file a Certificate of Formation with the state.

But there’s more.

Filing your Certificate of Formation in Maine costs about $175 and can only be done by mail. It takes 10 – 15 business days for it to be approved.

This guide compiles all the information you need to start an LLC in Maine today.

What Are the Steps to Start an LLC in Maine?

To start an LLC in Maine, you need to:

• Step 1. Choose and search for a unique name
• Step 2. Choose a registered agent in Maine
• Step 3. File Certificate of formation with the state
• Step 4. Create an Operating Agreement
• Step 5. Get an EIN from the IRS
• Step 6. File a BOI Report
• Step 7. File your Maine annual reports

The first five steps are the most critical steps you must follow, while the rest comes later.

But let us dive more in-depth into these steps so I can show you how to get them:

Step 1: Select a Unique Name for Your Maine LLC

Choosing the right name for your Maine LLC is important and requires some steps. First, your name must be distinguishable from existing businesses in Maine. You can check the availability of names on the Maine Secretary of State’s website.

Your name must include one of these phrases:

• Limited liability company
• Limited company
• L.L.C.
• LLC
• L.C.
• LC

For a low-profit LLC, use “L3C” or “l3c.” You can also shorten “limited” to “Ltd.” and “company” to “Co.,” but make sure it remains distinguishable from others.

If you find a name you like but aren’t ready to file, reserve it for 120 days. This costs $20 and involves mailing an Application for a Reservation of Name to the Secretary of State. This reservation cannot be renewed.

If you want to use a different name, file a Doing Business As (DBA) name. This requires a Statement of Intention and a $125 fee. A DBA isn’t necessary, but it’s useful for branding.

You can also file a trademark for your business name or signs. To file a trademark in Maine, you must file an Application for Registration of Mark, which costs $60.

Before finalizing your name, consider checking if a matching URL is available. This can help with online marketing.

These steps will help you choose a unique and effective name for your Maine LLC.

Step 2: Select a Registered Agent in Maine for Your LLC

A registered agent is a crucial part of your LLC. This person or company receives critical legal documents on behalf of your business. These documents may include lawsuit papers or official government correspondence.

Choosing the right registered agent is essential. They will be the point of contact for your LLC, so they must be reliable and available.

Who Can Be a Registered Agent?

You have a few options for who can be your Registered Agent in Maine:

• You: You can act as your registered agent, but remember you must be available during business hours to receive documents.
• A Family Member: A trusted family member can be your registered agent.
• An LLC Formation Service: Professional services offer expertise in handling official correspondence and ensuring compliance with state regulations.
• A Lawyer: A legal service firm can also serve as your registered agent, providing additional legal support if needed.

Requirements for Maine Registered Agents

Maine law requires registered agents to have a physical street address, not just a P.O. Box. The address must be where the agent can consistently receive legal documents and official mail during regular business hours.

Additionally, the registered agent must be at least 18 years old and available to accept service of process. This means they must be present to handle any legal notices or court documents delivered to the LLC.

What registered agents do I recommend for Maine?

I highly recommend Northwest registered agent services for obvious reasons.

They offer a range of benefits that set them apart, including a free year of registered agent service, which helps you save (about $300) on initial costs.

You’ll receive a complimentary operating agreement essential for outlining your LLC’s internal structure. My favorite part? Northwest also allows you to use their office address for your LLC filing, keeping your address off public records and enhancing your privacy.

Their free email forwarding service ensures you stay on top of important correspondence, and their exceptional customer support is always available to assist you whenever needed.

Step 3: File Maine LLC Certificate of Formation

You must file the Certificate of Formation to establish your LLC in Maine officially. This document is essential as it legally creates your LLC. This form includes vital details such as your LLC’s name, address, registered agent, and members’ or managers’ names.

To file your Certificate of Formation in Maine, follow these steps:

Step #1. Complete the Form: Obtain and complete the Maine Certificate of Formation from the Maine Secretary of State website.

When you complete your Certificate of Formation, be ready to provide:

• Name of your LLC
• Effective date: This can be the filing date or a future date.
• Type of LLC: Specify if it is an L3C or PLLC, if applicable.
• Registered agent’s name and contact info.
• Payment information: Choose between a check, money order, or credit card.
• Any other details you want to include as an exhibit.

Step #2: File by mail through the US Postal Service or FedEx/UPS: You can file your Certificate of Formation by mailing the completed form to:

Mailing Address if using US Postal Service
Department of the Secretary of State
Corporations, UCC, and Commissions
101 State House Station
Augusta, ME 04333-0101

OR

Mailing Address if using FedEx/UPS
Department of the Secretary of State
Corporations, UCC, and Commissions
6 E. Chestnut Street, 5th Floor
Augusta, ME 04330

Step #3: Pay the Filing Fee: The fee to file the Certificate of Formation is $175. Payment can be made by check, money order, or credit card voucher.

There are options for expedited processing: an extra $50 for 24-hour processing (next business day) and $100 for same-day processing.

Once your Certificate of Formation is filed, the state will review and approve it. This process usually takes 10 – 15 business days. After approval, your LLC is officially recognized, and you can start your business activities, obtain your EIN, open a bank account, etc.

Step 4: Prepare Your LLC Operating Agreement

An operating agreement is an internal document that outlines how your LLC will be run. It details the roles and responsibilities of the members and managers.

While not required by law in Maine, it is highly recommended. This agreement can help prevent misunderstandings among members and set clear rules for how your LLC operates.

Here are some key components to include in your operating agreement if you choose to prepare one:

• Ownership Structure: Listing all members and their ownership percentages.
• Management Roles: Specify who will manage the LLC. This can be member-managed or manager-managed.
• Voting Rights: Define how decisions will be made. Will all members have equal votes?
• Profit Distribution: Explain how profits and losses will be shared among members.
• Meeting Procedures: Outline how often meetings will occur and how members will be notified.
• Amendment Process: Describe how changes can be made to the agreement in the future.

This document also serves as a reference point if any issues arise. It helps ensure everyone is on the same page.

When drafting your operating agreement, please keep it simple. You can constantly adjust it later if your business needs to change. This flexibility is crucial as your LLC grows.

Consult a legal expert to ensure your agreement covers all necessary points. This step helps protect your interests and those of your members.

Step 5: Obtain an EIN for Your LLC

An Employer Identification Number (EIN) is a unique nine-digit number the IRS assigns. It would be best if you had an EIN for various reasons. It allows you to open a business bank account, apply for loans, and file taxes.

Getting an EIN is essential for your Maine LLC. Without it, you may struggle with tasks like applying for business permits and making contracts with vendors.

How to Apply for an EIN:

• Online: Visit the IRS website. This is the fastest way to get your EIN.
• By Mail: Fill out Form SS-4 and send it to the IRS. This option takes longer.
• By Fax: You can also fax the completed Form SS-4.
• Phone: U.S. residents can call the IRS at 1-800-829-4933 to apply.

How Much Does It Cost To Get EIN?

Obtaining an EIN is free. However, some services charge $100 or more to help you with the entire process.

How Does it Take to Obtain my EIN?

• Online: Get it immediately.
• By Mail: Expect 4 to 6 weeks.
• By Fax: Usually within 1-2 weeks.

Step 6: File a BOI Report

As part of running your LLC in Maine, you must file a Beneficial Ownership Information (BOI) report. This requirement helps the state identify individuals with significant control or ownership over the company.

When to File:

• If your LLC was formed before January 1, 2024, you need to submit your initial BOI report by January 1, 2025.
• For LLCs formed in 2024, the BOI report is due within 90 days of your formation notice.

How to File:

• Gather Your Information: This includes details about owners and significant stakeholders.
• Choose a Filing Method: You can file your report online using FinCEN’s BOI E-Filing System or submit a PDF file offline.

Essential Details to Include:

• The full name of each beneficial owner.
• Their date of birth and address.
• A unique identifying number, such as a driver’s license or passport number.

Filing the BOI report is crucial. Missing the deadline may lead to penalties or legal issues. Stay informed on any changes to reporting requirements to keep your LLC compliant.

Step 7: File Annual Report for your Maine LLC

Every Maine LLC that operates in the state must file an Annual Report each year to stay in compliance and maintain good standing with the state. This filing is mandatory, even if your business has not been active during the year.

You can submit your LLC’s Annual Report online through the online filing service or by creating a pre-printed report you can file via mail. Filing online is generally recommended because it’s more convenient, and the processing time is faster.

The filing fee is $85, regardless of whether you file by mail or online.

If you file by mail, processing times vary depending on the season. It typically takes about a week during less busy periods, but it may take 1-2 weeks near the filing deadline. Online filings are processed immediately.

Your LLC’s Annual Report is due by June 1st each year, with your first report due in the year following your LLC’s formation. For example, if your LLC was established on September 15, 2024, your first report must be filed by June 1, 2025.

If you miss the June 1st deadline, a $50 penalty is added to the $85 filing fee, bringing the total to $135. Failing to file within 65 days after June 1st (by August 5th) will result in the state administratively dissolving your LLC.

You can file your Annual Report as early as January 2nd each year. While the state no longer sends mail reminders, email reminders are sent if you provide your email address on your Certificate of Formation.

What are the Different Methods To Start a Maine LLC?

You have several options for forming an LLC in Maine. Each method has its benefits and drawbacks. Here’s an overview of the main methods you can choose from.

DIY LLC Formation in Maine

Starting your LLC yourself can save you money. However, you must follow specific steps, including filing the Certificate of Formation with the Maine Secretary of State.

All by yourself, no third party!

Pros:

• Cost-Effective: You save money by not hiring anyone.
• Control: You have complete oversight of each step.
• Learning Opportunity: You gain knowledge about the process.

Cons:

• Time-Consuming: It may take longer if you are unfamiliar with the process.
• Complexity: You must ensure all forms are correctly filled out.
• Privacy issue: If you serve as your registered agent, you risk having your address out there.
• Lack of Guidance: You might miss the necessary steps.

Using a Professional/Online LLC Formation Services

Many online services can help you form your LLC. These platforms guide you through the entire process, handling most paperwork.

Pros:

• Convenient: They manage the filing, saving you time.
• User-Friendly: Most platforms have easy-to-understand instructions.
• Support Available: Many offer customer service for questions.
• Privacy benefits: Most services allow you to use their address for free, so your address doesn’t get compromised

Cons:

• Costs: You’ll pay a service fee.
• Variable Quality: Some services may not be as reliable as others.

Hiring an Attorney

Working with an attorney is another option for forming your LLC. This method ensures you have professional legal guidance throughout the process.

Pros:

• Expertise: An attorney knows the legal requirements and can avoid pitfalls.
• Customization: Your LLC can be tailored to your specific business needs.
• Support with Complex Situations: Ideal for businesses with unique circumstances.

Cons:

• Higher Costs: Legal fees can be expensive.
• Dependence on Others: You may rely heavily on the attorney’s schedule.
• Potential Delays: The process may take longer due to attorney workloads.

What is The Cheapest Alternative Way to Form an LLC in Maine?

If you want to start an LLC in Maine on a budget, the most affordable option is to do it online. By filing the Certificate of Formation directly with the Maine Secretary of State, you only pay the $175 filing fee.

This DIY approach helps you avoid the extra fees of hiring a service or lawyer, saving you money for other business expenses.

However, while DIY is cost-effective, it requires some effort. You’ll need to understand all the forms and regulations, and missing a detail could delay your application or create problems later.

Consider using a registered agent if you prefer not to handle everything yourself.

They can make the process smoother by ensuring you receive important documents and helping you stay compliant with state requirements. Although this adds a bit to the cost, it can provide valuable support and peace of mind.

Who Provides the Best LLC Services in Maine?

There are a myriad of Maine LLC services from which to choose. Choosing the wrong one can affect your Maine LLC formation timeline—I know this from my experience using a few and researching a dozen over the years.

Here are some top-rated options you should consider:

Best Maine LLC Service	Google Rating	LLC Formation Cost	Registered Agent Fee
Northwest Registered Agent	4.7/5	$39	Free for one year
Doola	4.6/5	$0 (plus state fees)	$297/year
Tailor Brands	4.4/5	$0 (plus state fees)	$199/year
ZenBusiness	N/A	$0 (plus state fees)	$199/year

Besides, the fact that other services bill you for their registered agent in the first year, and Northwest offers it for free, is a HUGE plus for me.

Northwest Registered Agent stands out in Maine LLC formation due to its commitment to transparency, customer service, and privacy. Using their address helps protect your personal information, making them a reliable choice.

How Much Does It Cost To Form an LLC in Maine?

Starting an LLC in Maine involves a few costs. The fee to file the Certificate of Formation with the state is $175.

Here’s a breakdown of the costs you can expect:

Requirement	Cost
New LLC Filing Fee (Certificate of Formation)	$175
Name Reservation (optional)	$20
Trade Name Filing (optional)	$125
Trademark Registration (optional)	$60
LLC Formation Service (optional)	$39 (via Northwest)
Registered Agent Fee (optional)	$0 (via Northwest)
Annual Reports	$85
Total Estimated Costs	$260 – $405

When forming a new company in Maine, budgeting about $260-$405 for the first year is ideal. Then, if you want to go further, you can get other bells and whistles like a virtual mailbox, custom website, trademark services, premium EIN services, etc.

That said, the most significant (and essential) expense for every Maine business owner is filing the Certificate of Formation, which costs $175.

Pros and Cons of Forming an LLC in Maine

6 Important Things To Do After Creating Your Maine LLC

After forming your Maine LLC, you should take several essential steps. These actions will help ensure your business operates smoothly and complies with state regulations. Here’s what you need to focus on right away.

1. Research the Best Licenses and Permits for Your Business

Maine doesn’t have a state general business license. However, depending on the location of your LLC, you may need a local business license or permit.

It’s essential to find out what licenses and permits your business needs. This depends on your industry and location. Typical requirements include health permits, business licenses, and zoning permits.

You can start by checking with:

• Maine Secretary of State: They provide information on business licenses.
• Local Government: Your town or city may have specific regulations.

Make a list of needed permits and application deadlines. Failure to obtain the correct licenses can result in fines or business closure.

2. Create Business Accounts for Your Maine LLC

Opening a separate bank account for your LLC is essential for keeping your business finances organized and distinct from your funds. This separation simplifies your accounting and helps safeguard your assets by clearly distinguishing between personal and business transactions.

When choosing a bank, look for one that offers business-friendly services, such as waived fees, free online banking, and other features that can benefit your business. To open the account, be prepared to provide your EIN and a copy of your Articles of Organization.

A dedicated business account streamlines your financial management and simplifies tax preparation.

Having all your business transactions in one place lets you easily track your income and expenses, ensuring everything is well-organized and accessible when tax season rolls around.

3. Understanding Maine Tax Requirements and Managing Your Taxes

Maine has specific tax regulations for LLCs. Make sure you’re aware of both state and federal tax obligations. Your LLC might pay income, sales, or employment taxes, depending on your activities.

Here are key points to consider:

• Obtain an EIN: This is vital for tax purposes and hiring employees.
• Sales Tax: If you sell goods, register for sales tax collection.
• Estimated Taxes: You may need to pay estimated taxes quarterly.

Stay organized with tax documents and deadlines. Accounting software can help you manage your finances and prepare for tax time.

4. File your Maine Annual Report

Every Maine LLC that operates in the state must file an Annual Report each year to stay in compliance and maintain good standing with the state. This filing is mandatory, even if your business has not been active during the year.

You can submit your LLC’s Annual Report online through the online filing service or by creating a pre-printed report you can file via mail.

The filing fee is $85, regardless of whether you file by mail or online.

If you file by mail, processing times vary depending on the season. It typically takes about a week during less busy periods, but it may take 1-2 weeks near the filing deadline. Online filings are processed immediately.

Your LLC’s Annual Report is due by June 1st each year, with your first report due in the year following your LLC’s formation.

If you miss the June 1st deadline, a $50 penalty is added to the $85 filing fee, bringing the total to $135. Failing to file within 65 days after June 1st (by August 5th) will result in the state administratively dissolving your LLC.

5. Get Business Insurance for an LLC

Just as you wouldn’t leave your home without coverage, your LLC also needs the right business insurance to guard against potential risks and liabilities. Insurance protects your company’s assets and ensures financial stability in case of unforeseen issues or legal claims.

Your insurance needs will vary based on your business operations.

For example, general liability insurance covers risks such as slip-and-fall accidents or property damage if your LLC operates from a physical storefront.

Conversely, if you run your business as a consultant and work remotely, you might only need professional liability insurance to cover potential service errors or omissions.

6. Setup Your Business Online Presence (optional)

In today’s digital age, online presence is essential for attracting customers. Establishing a website and social media profiles can help promote your business.

Here’s how to get started:

• Create a Website: Use easy website builders or hire a professional.
• Set Up Social Media Accounts: Focus on platforms where your target audience spends time.
• Utilize Online Listings: Register on Google My Business and other review sites.

Engaging online boosts visibility and can lead to more customers.

Maine LLC vs. S Corp vs. Partnerships vs. Sole Proprietorship vs. Corporations

When starting a business, it’s essential to understand the differences between the options available to you. Choosing the proper structure depends on your business needs and future goals.

Here’s a breakdown of each type:

Sole Proprietorship

A Maine sole proprietorship is the most straightforward way to start a business. Imagine you’re running a lemonade stand on your own. You make all the decisions and keep all the profits.

However, there’s no legal separation between you and your business. If your lemonade stand faces financial trouble or legal issues, your assets, like your car or home, could be at risk.

It’s easy to set up and manage, but it does leave you personally responsible for any business debts.

Partnership

A Maine partnership involves teaming up with one or more people to run a business together.

Think of it as joining forces with a friend to open a café. You share the profits and responsibilities, and you both make business decisions.

However, like a sole proprietorship, each partner is personally liable for any business debts or legal issues. If the business encounters financial trouble, your assets could be at risk, too. Partnerships are relatively easy to set up but require clear agreements between partners to avoid conflicts.

LLC (Limited Liability Company)

An LLC offers a blend of flexibility and protection.

Picture it as a protective umbrella over your lemonade stand. This structure separates your assets from your business, so if your LLC faces legal issues or debts, your personal belongings are generally safe.

LLCs are more formal than sole proprietorships or partnerships but offer management and tax treatment flexibility. They are ideal for small—to medium-sized businesses that want liability protection without the complexity of a corporation.

S-Corporation

An S Corporation is a more structured business form.

Think of it as a business where owners are shareholders, much like a small-scale company with multiple investors. It protects liability and allows profits to pass through to your tax return, avoiding double taxation.

This means you report the income and losses on your tax return, which can be beneficial for tax purposes. However, S Corps have stricter operational requirements and formalities compared to LLCs.

Corporation

A Maine corporation is the most complex structure, suitable for larger businesses aiming for significant growth. Imagine a big company with many shareholders. A corporation offers robust liability protection and is a separate legal entity from its owners, meaning your assets are protected.

Corporations can raise capital more efficiently by issuing stock and can offer employee benefits.

However, they come with extensive regulatory requirements, formalities, and paperwork, making them more suitable for businesses with significant resources and expansion plans.

My Final Thoughts: Forming an LLC in Maine

Starting an LLC in Maine is an exciting step toward bringing your business idea to life. Although it might seem like many steps initially, breaking them down makes the process more manageable and ensures you cover all the essential bases.

To start your LLC in Maine, follow these steps:

• Choose a name for your LLC that meets state requirements.
• Designate a registered agent to receive legal documents.
• Submit a certificate of formation to the Maine Secretary of State.
• Draft an operating agreement to outline ownership and management.
• Obtain an Employer Identification Number (EIN) for tax purposes.
• File a BOI Report to ensure transparency and compliance
• File an annual report to maintain good standing with the state

The filing fee for the Certificate of Formation is $175. There is an option for expedited processing of 24 hours for an extra $50 and same-day processing for an extra $100.

After forming your LLC, prepare for annual reports, which cost $85 yearly.

Learn More About Starting an LLC in Maine

If you need additional help to start an LLC in Maine, check out these valuable resources:

Frequently Asked Questions

Can I change my registered agent in Maine?

Yes, you can change your registered agent in Maine. To do so officially, you must file a form with the state.

How do I change my Maine LLC’s name?

To change the name of your LLC, you need to file a name change application with the state. This involves submitting the required form along with any applicable fees.

How do I renew my Maine LLC?

Renewing your Maine LLC involves submitting the annual report to the state. This report includes basic information about your LLC, and you must pay a renewal fee.

How do I dissolve an LLC in Maine?

To dissolve your LLC in Maine, file the Articles of Dissolution with the state. This requires submitting the proper form and any applicable fees.

How do I add a member to a Maine LLC?

You must amend your operating agreement to add a member to your Maine LLC. You should notify the state and update your records accordingly.

How do I add a DBA to an LLC in Maine?

You must file the appropriate certificate with the state to add a Doing Business As (DBA) name to your LLC. This allows you to operate under a different name.

Can a minor own an LLC in Maine?

Yes, a minor can own an LLC in Maine. However, there may be some limitations and additional considerations involved.

When is the Maine Annual Report due?

The Maine Annual Report is due on June 1st of each year. It must be submitted to maintain your LLC’s good standing.

Does LLC expire in Maine?

An LLC does not automatically expire in Maine if you file the required annual reports and pay the fees.

Can a non-resident open an LLC in Maine?

Yes, a non-resident can open an LLC in Maine. There are no residency requirements for forming an LLC in this state. Read our LLC guide for non-residents to learn more.

Can I buy a house or car with my LLC in Maine?

Yes, your LLC can buy property or vehicles in Maine. However, the purchases should be documented appropriately and aligned with your LLC’s business purpose.

Can you have multiple businesses under one LLC in Maine?

In Maine, you can operate multiple businesses under one LLC. However, it is essential to maintain precise records for each business activity.

Is Maine an excellent state in which to form an LLC? Is it worth it?

Maine offers benefits for LLC formation, like a favorable business environment and relatively low fees. Weigh these factors based on your specific needs.

Can one person form an LLC and start an LLC in Maine?

Yes, one person can form an LLC in Maine. This is called a single-member LLC and is a common choice for solo entrepreneurs.