Maine LLC (5-Step Guide) – How to Easily Create an LLC in Maine

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The process of getting an LLC for a business can be undoubtedly burdensome. This is an inexcusable fact, especially when you want to get it done as quickly as possible. But, do you know there is an easy way to do so? Well, this 5-step guide is filled with details of how to get started in the process and keep your business running smoothly.

In Maine, many businesses are rising, and that is because the business structure of having a Maine LLC is well-regulated. It is easy to file taxes, and more importantly, it is quicker to manage and regulate your Maine LLC. With a state like Maine with great industries, it is wise to enjoy the benefits, and protection Maine LLC gives.

So, if you are on the verge of having a Maine LLC or are asking why you need a Maine LLC, let’s look at the key reasons and check out the pros and cons of having one. Then finally, we would look at the easy ways you can form your Maine LLC.

Table Of Contents

Start a Maine LLC With Professional Help Today [jump to offer]
Why Would You Want a Maine LLC?
Quick Maine LLC Pros & Cons
- Pros
- Cons
How to Form Your Maine LLC in Five Easy Steps
Form an LLC in Maine With Professional Help Today
Final Thoughts
FAQs About Maine LLC

Why Would You Want a Maine LLC?

Aside from the benefits peeped into in the introductory part, there are yet so many reasons why Maine LLC is a good idea for every business owner in the state. Regardless, let’s look at these few highlighted reasons why Maine LLC may be your best bet.

Liability risk protection: By using a Miane LLC, your assets and those of any other persons connected to the business are protected. So, if your company gets sued or is indebted, you won’t lose your personal properties.
Taxes: Unlike other business structures, the advantage of using a Maine LLC is to personalize tax based on personal income, not on general revenue. So, for every income the company registered gained, the tax will be paid based on what individuals make personally, not on the shared income.
Flexible record keeping: The structure of a Maine LLC gives a less rigid method of recording than a regular corporation which is more of an advantage than a disadvantage.

Quick Maine LLC Pros & Cons

Having seen why you should choose to have a Maine LLC, check out these pros and cons.

Pros

Personalized profits and loss distribution: Having a Maine LLC gives you the access to customize your business structure and decide how to distribute the profits and losses. You would specify how you want the profits to be allocated on the operating agreement, and it will be adhered to. So, whether you are there or not, everybody gets their share, and it keeps the business running for long without hiccups on returns distribution.
Increased business incentives: There are so many incentives your business will enjoy for having a Maine LLC, of which the most popular one is Pine Tree Development Zones (PTZ). If you registered your company in the PTZ, you would automatically gain access to corporate tax credits, tax exemptions, and many more. However, it depends on the sector your business falls under for these benefits to be practical. If it is technology, manufacturing, and financial services, then you can be sure to enjoy the listed benefits.
Financial benefits: The Finance Authority of Maine is responsible for providing financial support to businesses, especially startups with Maine LLC. If you are in a Rural area, an authority is required to give a maximum amount of $500,000 with other investments benefits. Also, an investment card will be issued if your business invests in equity investment and is located in the rural part of the state. That card will be equivalent to about 39% of the initial investment.

Cons

Although Maine LLC has cons, they are not substantial to be used as a decisive measure compared to the pros.

LLC registration is time-demanding
Compared to other corporations, LLC takes more time. But the process can be faster with the help of dedicated agencies.
Cost is higher

Although there are free and affordable Maine LLC that you can settle for, it is not cost-effective compared to any other structure that doesn’t need filling. This is because you will have to pay some annual fees and additional state fees that could be beyond budget.

How to Form Your Maine LLC in Five Easy Steps

Forming your Maine LLC can be done quickly using these five steps. If you are already settled that this is what you want for your business, don’t worry, all you need to get it down is detailed below.

Step 1: Create a Business Name for Your Maine LLC

Before doing any paperwork at all, you first have to choose a name for your Maine LLC. You will have to follow some specific guidelines as they are requirements to getting a legal name for Maine LLC.

Suffixes: The first guideline to consider is the abbreviation at the end of the name you choose. For any name, it must end with any of the following – LLC, L.L.C, L.C, or LC. If it doesn’t have these, it will be an invalid name.
Precise names: Any name that is confusing such that it looks like government-related names are often not considered. If the name also has a relationship with University or sounds offensive or illegal, it will be void.
Distinct names: The name you choose must not already be taken or similar to any other limited liability company. So you have to check if the name you choose is available for use by checking the Maine secretary of state’s website.
Valid URL: Creating a name for Maine LLC also comes with getting a domain and a corresponding URL. Even if you haven’t gotten a website yet, it is best to get the domain to secure a spot for your name for future purposes.
Trademark: Having confirmed the name you want to use and bought a domain, it is essential you take a step forward to trademark it. Trademark helps to secure your name from theft which is a security protection every business needs. Not just the name, but you also need to trademark any business brands used like logo, tagline, etc. You can also find if your trademark is already registered through the Maine state website.

Step 2: Get a Registered Agent in Maine

You are already settled with the name for your Maine LLC, and it is trademarked; the next thing is to choose a registered Maine agent to stand in for you. Some people act as Maine agents, but that could be a wrong move because of the demand for a registered agent. What a registered agent does is stand as the middle man to get the legal document concerning your LLC. This work will surely be time demanding; hence, hiring an agent in Maine and above 18 years is the best option for you. There are some specific business advantages a registered agent will provide for you.

To know more – read our full guide on Registered Agents.

Privacy is guaranteed. For a business owner who is also a registered agent, the government will always direct access to the owner. Why is that? The registered agent has to fill in an address that would be the business owner’s, which means that information is not hidden from the public. Instead of having to go through the hassle of being public or not, you can protect your privacy by employing the services of a registered agent. Plus, it makes it easier to operate with an agent in the picture at any hour of the day. You also don’t have to bother with paperwork when you change location because your home address isn’t the same as your agent’s address.
Flexibility is enhanced. Hiring a registered agent will guarantee flexibility in your business management. If you have to go to a different location for business dealings, your agent will stand in for you for any paperwork that needs to be done. More so, the agent is resident in Maine, which is a plus for attending to any legal documentation that needs to be done. You will also get the opportunity to operate outside business hours with a registered agent and bring in more profit.
Company’s impression will be protected. In a bid to protect your image, registered agent are needed to help with keeping the company running without any distraction. So, in case of any unpleasant law situations like a lawsuit, the registered agent will take care of it discreetly and help you avoid facing those awkward moments. Also, the agents are always up-to-date, so you can be sure of getting first-hand updates on every situation.
Documents will be better organized. If you become your agent or give a friend, there is every tendency of getting overwhelmed or letting some disorganization go because of familiarization. But with a registered agent service, it is easier to get those documents organized and meet deadlines.
Business expansion will be possible. As a business owner who wants to expand to another state, being a registered agent will be impossible; hence, hiring agents all over the states will be inevitable. Advancement in different states comes with having more agents since your LLC will require that. So, if you want expansion, registered agents are the go-to services.

Step 3: File the Certificate of Formation for Maine LLC

Having done steps one and two, the next step is to file for certification of formation (full guide here). You need to complete the form, which can be done online as explained in the Maine certificate of formation. The content of the form you need to fill includes:

Company’s name and address
The date of filing
Your registered agent’s name and address (which could be commercial or non-commercial)
LLC members or owners
Signature
Business duration

Also, the file Maine certificate of formation LLC is attached with a cover letter that has the following information.

Business’s name
Certificate of Formation
The receiver’s address ( The secretary of state address)
Information of contact person.

After filling these forms, to submit the form, you will have to do it in person to the address of the state’s secretary with a separate fee. The address you will send it to will be the address where the Secretary of State’s office will return documents which are written below:

101 State House Station
Secretary of State Department
Division of Corporations, UCC, and Commissions
Augusta, ME 04333

This filling can be tiring as it involves so much paperwork but some agencies can help with these processes.

Step 4: Prepare your Maine LLC Operating Agreement

Every Maine LLC is expected to have a legal document that shows your business’s ownership and operating structure. If you have done the previous steps, it is essential you move on to create the operating agreement to lay out the functioning of your business. The operating agreement contains specific rules and functions that are agreed upon by LLC members of your business.

Here’s our full guide on operating agreements.

Though it is mandatory to prepare an operating agreement for Maine LLC, it also has some crucial benefits you wouldn’t want to miss. By creating the operating agreement, your business automatically looks more formal, and that is an excellent way to protect your LLC reputation. It will also help to contain all forms of controversies that might occur among the LLC members since there will be a document to refer to.

Now, in the operating agreement document, some specific three things need to be outlined.

Responsibility of all members of LLC: Every member of the LLC has a responsibility and also has a particular amount of returns allocated based on the income. So, it is expedient that it is stated clearly in the agreement.
Hierarchy and roles: The employees also need to be aware of the roles they have to play and the level in the hierarchy chart. Stating these clearly will help everyone know where they stand and who to accord respect to.
Selling and buying details: It is vital to restrict some types of buying and selling as it might not favor some of the members of the LLC. So, the written agreement will guide against unnecessary adjustment to profits due to a buyout change, LLC member dismissal or death.

After preparing the operating agreement, please keep it safe with other documents and move to step five.

Step 5: Proceed to Apply for a Maine LLC EIN

A Maine LLC EIN is the Employer Identification Number associated with your LLC. Some call it a Tax Identification Number because it is used for most tax dealings. You have to apply through the Internal Revenue Service(IRS) website or mailing to get this number. But if you don’t want to go through any online stress or mail it, you can use outsourced agencies to get the number for you.

Here’s our full guide on how to get an EIN.

The next big question is, “why is EIN necessary?

To employ staff: Before you can hire an employee, you need to be working with an EIN to do so. It shows the public that you are an official employer who has the right to employ others.
To get business bank account privileges: First, when you have an LLC EIN, it is easier to open a business account. Not only that, but you get other privileges that have to do with organizing finances. Also, with EIN, it is possible to do multiple transactions on your account, which helps resolve so many financial issues.
For more manageable tax payment: One of the significant drawbacks to tax payment is commingly funds. When this is formed, it could lead to different court issues that would have been avoided if you have used your EIN to settle funds in your bank.

So, whether you had an EIN before converting to LLC or not, you must make another one as LLC requires a specific one for the conversion.

Form an LLC in Maine With Professional Help Today

Instead of going through the pressure of having to do all the Maine LLC processing yourself, get professional service help, of which the recommended two are justified below.

1. Create a Maine LLC With ZenBusiness

The reasons why ZenBusiness is highly recommended is extensive. First, they offer affordable LLC, which are good for managing business funds. Also, you get a registered agent to do all the paperwork for a discounted price of 50%. That is not all. They have some juicy features packaged for users to enjoy. You also get supported by them all the way, whether there is a need to or not. They also give at least two amendments per year for free if you obey all the legal requirements. So, if you purchase any of the ZenBusiness plans, there are so many things they would do for you, which will ultimately keep you standing right with the state.

Read our full ZenBusiness review here.

$0 + State Fees

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2. Create Maine LLC With Incfile

Everybody likes free deals, and Incfile gives just that and more. Even though it is free to form your Maine LLC with Incfile, you get to enjoy similar benefits as some paid agencies offer. However, you would have to pay the state when you file without additional charges to Incfile. More so, you have access to a registered agent without having to pay for at least one year, which is enough to kick start your business. So, if you are on a budget, it is a great option to go for Incfile and get the best still.

Here’s our full review of IncFile.

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Final Thoughts

Maine is already known to be a flourishing business state with about a steady 10% GDP increase from 2014 to 2019. This increase has contributed to the growth of significant development industries like healthcare, manufacturing, agriculture, and so many others. Therefore, having a Maine LLC in a state like this will mean better thriving opportunities. Plus, you will enjoy the liberty of running your company in a regulated state with lesser taxes to pay. No doubt, Maine LLC formation is a smart choice for any business owner.

FAQs About Maine LLC

1. How long does it take to process Maine LLC?

The process of getting a Maine LLC I do want to take more than 5-10 business days, and it can be faster depending on the agency handling it for you. You might have to pay extra, but it can be done to speed up your business establishment.

2. How is taxing structured for Maine LLC

If your company has a Maine LLC, you will be exempted from paying federal income taxes as a company. But the members of your LLC are to pay the taxes based on their personal income. They will pay Maine sales tax, and you will pay self-employment taxes. You only get to pay as a company if you sell taxable goods and services.

3. Where do I file the operating agreement and annual report?

No doubt, having an operating agreement is a must-have for Maine LLC, but you don’t have to file it to the State secretary’s office. On the other hand, the annual report would be filed to the Stats Secretay’s office, and that should be done on June 1 every year. Yet, both must be done whether or not they would get to the State’s office.

4. What do I need to do to dissolve the Maine LLC?

Peradventure, you don’t want to have a Maine LLC anymore; you can dissolve easily with no fees attached by submitting an application. This application that contains the dissolution will be filed directly to Maine’s State Secretary.

5. How do I choose a reasonable tax structure for my Maine LLC?

You can choose to separate your business account from your personal account, which is an excellent way to avoid some imposed tax. Though regular LLCs don’t have this structure but you can do it yourself or through the help of a tax professional since it is a better structure.

6. What are the specific permits and licenses Maine LLC requires?

There are so many licenses and permits you will need at the state and federal levels. Also, different locations have specific licenses you need to have. So, it is best to allow business license agents to research for you so you won’t miss out on any needed permits.

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