How to Form an LLC in Maine

Co-authored by Clinton M. Sandvick, JD, PhD

Last Updated: May 25, 2021 References

A Limited Liability Company (LLC) is a business structure that separates the finances of the owner or owners from those of the company. This means that the owners' personal assets are protected if the LLC fails.^{[1]
X
Research source} Forming an LLC in Maine, like in most states, is simple and affordable.

Part 1

Part 1 of 2:

Registering Your LLC

1
Select a name. Consult with your partners if you have them and choose an appropriate name for your LLC. Anything is fine, as long as it is not already taken by another company operating in your state. It must also be contain some form or abbreviation of the words "limited liability company." Acceptable forms of this include "limited liability company" or the abbreviations “L.L.C.,” “LLC,” “L.C.,” or “LC." Be sure that your name meets these criteria before reserving an LLC name, because otherwise your name might be rejected.^{[2]
X
Research source}
- Search for your chosen name the Maine business name database at https://icrs.informe.org/nei-sos-icrs/ICRS. This will allow you to see whether or not your company name is already taken.^{[3]
  X
  Research source}
- Reserve your LLC name by mailing in an "Application for Reservation of Name," found at http://www.maine.gov/sos/cec/corp/llc.html. The reservation costs $20 and is valid for 120 days.^{[4]
  X
  Research source}
2
Appoint a registered agent. The registered agent acts a legal representative of your company, usually to accept any legal papers served to the LLC. Your registered agent can be a person or another business, but needs to at least have a physical presence in Maine (a Maine street address).^{[5]
X
Research source}
- It's easiest to choose a registered agent from the list provided by the state department. The list of registered agents in Maine can be found at http://www.maine.gov/cgi-bin/online/moraa/cra_list.pl.
3
Prepare and File the Certificate of Formation. This document officially creates your LLC. Fill out the proper form at http://www.maine.gov/sos/cec/corp/llc.html under "Certificate of Formation." The certificate must include the names and addresses of both the LLC and its registered agent. This certificate must be completed and mailed in to the Maine Secretary of State along with a check for $175.^{[6]
X
Research source}
- Send the check and Certificate of Formation to the following address: Secretary of State, Division of Corporations, UCC and Commissions, 101 State House Station, Augusta, ME 04333-0101
- Assuming there are no delays or issues with your application, your certificate of formation will be mailed to you within five to ten business days.^{[7]
  X
  Research source}
4
Consider writing an operating agreement. An operating agreement sets up how your LLC will be managed and run, specifying things like compensation and management structures.^{[8]
X
Research source} Single-owner LLCs in Maine are not legally required to have an operating agreement, but it is highly recommended that they do.^{[9]
X
Research source} However, Maine law requires that multi member LLC's draft an operating agreement.^{[10]
X
Research source} An operating agreement should generally include the following:
- The names of the members and their percentage interests in the LLC (how much each person owns)
- How profits and losses will be distributed
- Member voting rights and regulations for meetings
- Member responsibilities
- Management structure
- Provisions for members leaving/selling-out from the LLC^{[11]
  X
  Research source}
Advertisement

Part 2

Part 2 of 2:

Fulfilling Additional Requirements

1
Obtain an EIN. In order to pay employees, you need to contact the IRS to apply for an Employer Identification Number (EIN). To apply for an EIN, contact the IRS by phone or visit their website at https://www.irs.gov/Businesses/Small-Businesses-&-Self-Employed/Apply-for-an-Employer-Identification-Number-(EIN)-Online.
- If you have a single-owner LLC and don't plan to hire employees, you still may want to get an EIN. This will allow you to be taxed as a corporation.^{[12]
  X
  Research source}
2
Register with Maine Revenue Services. If you plan to have employees or sell goods to customers, or collect any sales tax at all, you will have to register with Maine Revenue Services. To register, you can go online to https://www.maine.gov/cgi-bin/online/suwtaxreg/index and fill out the required forms there. To do so, you'll need certain information about your LLC, such as its:
- EIN (or your SSN if you don't have an EIN)
- Address
- Commencement dates for accounts
- Manager contact information^{[13]
  X
  Research source}
3
Obtain business licenses and permits. In some locations, you may have to file for additional permits and licenses from the state and local governments.^{[14]
X
Research source} This also depends on the type of business you have created. For example, a bar would need alcohol licenses and safety permits. These licenses and permits may also require additional fees.^{[15]
X
Research source}
- Determine what licenses and permits you are required to have by checking out the Small Business Administration's guide at http://www.sba.gov/content/search-business-licenses-and-permits.
- Or, check with your local Chamber of Commerce for more information.^{[16]
  X
  Research source}
Depending on your type of business, you might need to purchase workers compensation insurance. Most physical business locations will also require you to have general liability insurance. Check with your local Chamber of Commerce or the Small Business Administration to learn which types of insurance you are required to have. Alternately, consult with a lawyer in your area.^{[17]
X
Research source}
5
File Annual Reports. After your LLC is up and running, you will have to file an annual report each year and pay a fee of $85. The first one is due on June 1 of the year following the creation of the LLC. Subsequent registrations are due at the same time in subsequent years.^{[18]
X
Research source} You can pay these fees and file your reports online at http://www10.informe.org/aro/index_on.html.
- You can get a preprinted annual report form from the Maine Secretary of State's website at http://www10.informe.org/aro/form_download.html.^{[19]
  X
  Research source}
Advertisement

Expert Q&A

Search

Add New Question

Ask a Question

200 characters left

Include your email address to get a message when this question is answered.

Submit

Video

Tips

LLCs formed outside of Maine must file an application, found at http://www.maine.gov/sos/cec/corp/llc.html under "Statement of Foreign Qualification to Conduct Activities," with the Secretary of State with the required $250 fee to do business in the state. They must also submit a Certificate of Existence or Good Standing from the foreign LLC’s home state and ensure that their business's name is not currently being used in Maine before filing.^{[20]
X
Research source}

Thanks
Helpful 0 Not Helpful 0
You must be at least 18 years old to form an LLC.

Thanks
Helpful 1 Not Helpful 0