How to Start an LLC in Maine

Many business owners choose to set up their businesses as limited liability companies (LLCs) to protect their personal assets and enjoy tax advantages. 

Maine offers a straightforward LLC formation process, enabling you to get your business started in a few simple steps. Here’s what you need to know to start your Maine LLC. 

How to form a Maine LLC in 6 steps

Forming a Maine LLC involves naming your business, appointing a registered agent, creating and filing required documents, registering for applicable taxes and licenses, and obtaining an employer identification number (EIN).

Step 1. Choose your business name

The first step in starting your LLC is selecting a business name. Your LLC name must be unique and meet Maine’s LLC naming requirements. 

Maine requires LLC names to meet the following requirements.

• The name of the LLC must contain either the words “limited liability company” or “limited company,” or any of the following abbreviations: "L.L.C.," "LLC," "L.C.," or "LC.” “Limited” can be abbreviated as “Ltd.,” and “company” can be abbreviated as “Co.”
• If the business is a low-profit limited liability company, it can typically use the abbreviations “L3C” or “l3c.” A low-profit limited liability company must meet certain criteria, including furthering a charitable or educational cause as its main purpose.
• The name must be distinguishable from those of existing Maine corporations, LLCs, or limited partnerships. 
• The name should be distinct from assumed, fictitious, reserved, or registered Maine entity name filings. 
• The name needs to be unique compared to registered marks unless the owner of the mark also owns the LLC and files ownership proof with the Maine Secretary of State. 

The Maine Secretary of State does not consider the presence of the following words or terms (or their abbreviations) when deciding whether an LLC name is distinct:

• Chartered
• Company
• Corporation 
• Incorporated
• Limited
• Limited company 
• Limited liability company
• Limited liability partnership
• Limited liability limited partnership
• Limited partnership
• Professional association
• Professional corporation
• Professional limited liability company
• Registered limited liability partnership
• Service corporation

In addition, the words “and,” and “the,” special characters and differences in punctuation or capitalization are disregarded when determining distinguishability. 

The Maine Secretary of State may reject LLC names that contain obscene language, promote abusive or illegal activity, or insinuate a false connection with public institutions.

Finally, your LLC name cannot contain words such as “bank,” “savings,” or “trust” without obtaining authorization from the Maine Bureau of Financial Institutions.

If your LLC name isn’t distinguishable from names of existing Maine businesses, it will be refused for filing. Conducting a business name search can help you ensure that your name is unique. You can check to see if any other businesses are already using your desired LLC name by using the Maine Secretary of State’s Corporate Name Search tool. 

The Corporate Name Search tool enables you to search any business entities that have either filed their name or filed for mark protection with the Maine Secretary of State’s Division of Corporations. You can search using the exact business name or a keyword or partial keyword. Narrowing the search will give you the most accurate results. 

If you have checked the Corporate Name Search tool and have determined that your chosen name is distinct, you might consider reserving your business name. You can reserve your business name for 120 days by filling out a Maine LLC Application for Name Reservation form and submitting the form along with a $20 filing fee to the Maine Secretary of State. You have the option of paying an additional $50 fee for 24-hour expedited service or a $100 fee for same-day processing. 

Step 2. Appoint a registered agent

A registered agent is an individual who functions as the point of contact to receive service of process for an LLC.

A Maine registered agent must have a physical address in Maine and be able to receive any legal documents on behalf of your LLC. You can appoint an individual to the position, or use a registered agent service.

You can appoint a registered agent by filling out a Statement of Appointment form and submitting the form and a $35 filing fee to the Maine Secretary of State. 

Step 3. File the certificate of formation

The next step in forming your LLC is filing a Certificate of Formation (Form MLLC-6) with the Maine Secretary of State.

Your Maine LLC certificate must include the following information:

• The name of the LLC
• The filing date
• Whether the company is a low-profit LLC
• Whether the company is a professional LLC
• The name of the LLC’s registered agent if they are a commercial registered agent or
• The name, street address, and mailing address (if different from the street address) of the LLC’s noncommercial registered agent
• The name, phone number, email address, and mailing address of the LLC’s contact person

You also have the option of ticking a checkbox to indicate that you are submitting a statement of authority along with the certificate. A statement of authority describes the authority granted to specific individuals to carry out transactions on behalf of the LLC. It can also be used to detail limitations on their authority. If you are submitting a statement of authority along with your certificate of formation, you will need to complete the Statement of Authority form and pay an additional $50 filing fee.

Once you have completed the certificate of formation, you can sign it and mail the form along with any supporting documents and a $175 filing fee (payable by check or money order) to the Office of the Maine Secretary of State. You can also pay the fee by credit card by filling out a credit card payment voucher and submitting it along with your certificate. 

 Step 4. Create an operating agreement

While not legally required in Maine, it’s still a good idea to create and maintain an LLC operating agreement. An operating agreement outlines the ownership structure of your LLC, describes the roles of each of the LLC owners (referred to as members), and details the company’s operational procedures. 

Maintaining an operating agreement can help ensure that members are on the same page about how the LLC functions and understand their individual responsibilities. 

Step 5. Obtain an EIN and open a business bank account

Once your LLC is set up, you can get an EIN (or federal tax identification number) from the IRS. An EIN is used to pay business taxes, open a business bank account, and hire employees. 

You can apply for an EIN online (for free) on the IRS website. You can also get an EIN using LegalZoom. We guarantee accurate filing—fill out a quick questionnaire and we will get back with a confirmed EIN for your business. 

Step 6. Register for state taxes and business accounts

Depending on your business activities, you may be required to register for state taxes or obtain business licenses.

For example, new businesses that sell goods or provide taxable services must register to file Maine Sales and Use Tax returns. Businesses that provide specific services, such as movie rentals, telecommunication services, and rent-to-own services must register for Service Provider Tax. New employers must register for income tax withholding. 

Many business licenses are provided at the local level in Maine. You can contact your town or city office to find out how to get a business license. Some types of businesses—such as those that sell liquor or food—must secure additional permits or licenses. Check the Maine government’s Resources by Profession page for licensing information for specific industries. 

What to do after forming your Maine LLC

Here are a few other steps you can take to set your LLC up for success.

• Register a domain name. Even if you don’t plan on doing business online, having a website can add to your business’s credibility and provide potential customers with information about your goods or services. Registering a domain name that aligns with your LLC name can help ensure that your audience can find you online. 
• Obtain a certificate of good standing. A Certificate of Existence serves as proof that your LLC exists and is in good standing. You can obtain a Certificate of Existence for $30 through the Maine Department of the Secretary of State’s Bureau of Corporations. 
• Consider a foreign LLC. If you formed your business in Maine but want to start doing business in another state, you may be required to register as a foreign LLC in that state.

Annual filing requirements for Maine LLCs

Maine LLCs must file an annual report (Form MLLC-13) each year by June 1 in order to remain in good standing. The filing fee is $85. If you don’t file on time, you may face a late filing penalty. If you don’t pay the penalty, you risk having your LLC revoked. LegalZoom’s annual report service can help you save time, allowing you to focus on your business.  

Annual reports contain current details about your LLC, such as its name, address, and registered agent. 

If the report is not received by the filing deadline, there will be a late filing penalty assessed. Failure to pay the late filing penalty will result in the administrative dissolution or revocation of your legal entity.

The cost of forming an LLC in Maine

The cost of forming an LLC in Maine can include the following expenses.

• Certificate of Formation: $175
• Annual report: $85 
• Name reservation: $20
• Statement of Appointment form: $35
• Registered agent service: $125-$250/year depending on the scope of services and support provided
• Expedited services: $50 for 24-hour service or $100 for same-day processing. 
• Business licenses: The cost of a business license varies depending on the license type. For example, an annual retail tobacco license costs between $100 and $150, while an eating and catering combination license costs $300.
• Total cost: Approximately $450 to $1,000 

How to start your Maine LLC with LegalZoom

LegalZoom’s LLC formation services make it easy to start your Maine LLC. Simply answer a few questions about your business and choose the plan that best fits your needs and we’ll take care of the rest. 

FAQs

Do I need a business license for my Maine LLC?

The type of business license you need for your Maine LLC depends on your industry type and location. For example, the licensure fee for an occupational therapist is $35, while a veterinarian license costs $95.

Contact your local municipality to determine your licensing requirements. 

How long does it take to form an LLC in Maine?

Processing time can take 25-30 days, but you can pay a fee for expedited services. 

How do I correct filing errors in ME?

If you need to correct a filing error, you can fill out a Statement of Correction form (Form MLLC-17) and mail the form and a $50 filing fee to the Maine Secretary of State. 

How do I dissolve a Maine LLC?

You can dissolve a Maine LLC by completing a Certificate of Cancellation form (Form MLLC-11C) and submitting the document and a $75 filing fee to the Maine Secretary of State.