Form an LLC in Maine for Free with Inc Authority

The first step to starting an LLC in Maine is selecting an official business name that adequately reflects your brand. The name must be unique to your business and should not be used by any other business to avoid confusion.

Before you pick a business name, you must do some research to find out if your desired LLC name is available or has been taken by another business. You can use the free name search tool Inc Authority provides for this.   

Once you’ve chosen a unique business name, you must reserve it or risk losing it to another business or organization. For $20, you can apply to reserve your name with the Secretary of State of Maine for up to 120 days. 

Your business name must also adopt the LLC naming conventions mandated by the state of Maine. It must have “Limited Liability Company” attached to it. Otherwise, it can have any of the alternatives like “L.L.C”, “LLC”, “L.C”, or “LC”.

You must appoint a registered agent for your LLC in Maine. A registered agent is a business or individual who will be the official point of contact for your company. They will accept legal papers and tax documents on behalf of your LLC.  

You or any member of your LLC can serve as a registered agent or you can outsource it to commercial registered agent services providers. Whoever you choose, must have a permanent physical address in Maine. 

You can decide to run your company as a single-member LLC or multi-member LLC. A multi-member LLC allows you to hire employees and have several members, while in a single-member LLC, you would be the company’s sole member. 

The state of Maine also recognizes Low-profit LLCs (L3Cs). These are companies that can generate revenue and enjoy pass-through taxation. However, they must not have a political objective and have a charitable or educational purpose.

An operating agreement is an official document that outlines the terms of operations of an LLC. It acts as a binding agreement that allows the members of your LLC to make financial and functional business decisions according to guidelines. 

Maine government policies do not require LLCs to submit an operating agreement. However, we recommend that you create one to guide the operations of your company, especially if you plan to run a multi-member LLC in Maine. 

Before your LLC in Maine can become a legally registered entity, you must file your certificate of formation with the Secretary of State. A certificate of formation is an official document that contains crucial information about your LLC. 

This document should contain the name of your LLC, contact information, and details of your registered agent. The filing fee for this document is $175. However, the government gives you the option of expedited filing for an extra cost of $50-$100.

Also known as a federal tax identification number, an EIN is used by the IRS as a means of identifying your LLC for tax reporting purposes. It’s also necessary for opening a business bank account and paying the employees of your LLC. 

If you run a multi-member LLC, you must get an EIN. For a single-member LLC, you can use your social security number as an EIN. However, get an EIN even for a single-member LLC in case you decide to hire employees in the future.

Maine LLCs are required to have a business checking account that helps keep the business finances separate from its members’ finances. Once you’ve got an EIN, opening a bank account should be a pretty straightforward process. 

Besides your EIN, you’ll need other documents like the LLC operating agreement, certificate of formation, etc. As a startup, one business checking account should suffice for streamlining your finances. As you grow, you may need multiple accounts. 

The Maine government does not require LLCs to get a general state-level business license. However, depending on the particular county or city your business operates in, you may have to get a municipal license or tax license.

The type of goods or services your LLC provides will also determine if you need to get an industry-specific license. You’ll need a license if your LLC provides financial services, healthcare, architectural services, construction work, etc.

The great thing about starting an LLC in Maine is that you get to choose whatever tax structure you want. Other business entities do not enjoy this flexibility. LLCs generally enjoy pass-through taxation, avoiding double taxation. 

As an LLC owner in Maine, you’ll pay Maine’s individual income tax at the rate of 5.8% to 7.15% of your income. If you choose to be taxed as a C-Corp, you’ll pay the 21% federal income tax rate and 3.5% – 8.93% graduated corporate income tax.

If your LLC has at least one employee, whether full-time or part-time, Maine requires you to get worker’s compensation insurance. This type of insurance covers any work-related injuries that may occur from accidents or illnesses.  

It is not a requirement to obtain property and liability insurance for your LLC in Maine. However, it is advisable to get them because they protect your company from property damage, injury claims, and lawsuits that may affect your finances.

When you start a new company, you need to create logos, brand colors, designs, and other elements that are unique to your brand identity. Getting a trademark will protect your brand elements from being copied by another business. 

You must first check with the patent office’s Trademark Electronic Search System to verify that there are no trademarks similar to yours. Then, submit your application to the U.S. Patent and Trademark Office (USPTO) and await approval.

Although this is not a mandatory step, it is highly recommended. One of the keys to staying ahead in a digital age is creating a website for your business. Ensure you design it with your brand logo, colors, and other unique brand elements. 

Your website should also have a domain name that matches your legally registered business name or DBA (doing business as). This makes it appear more professional and credible, thus attracting potential investors or business partners.  

After you’ve registered your LLC in Maine, you must keep up with certain ongoing compliance requirements mandated by state laws. You’re required to file an annual report with the Secretary of State. The legal deadline for this report is June 1.

The annual report verifies that you’re still a viable LLC operating under state laws. The filing fee for this report is $85 for domestic LLCs and $150 for foreign LLCs. You can also choose to file it online or print it out and submit it by mail. 

These are the benefits you’ll get with the free plan. 

• Business Name Search: Inc Authority makes it easy for you to find available business names using the free name search tool on its website. It allows you to search through a comprehensive list of registered firms to find available names. 

• Registered Agent Services for One Year: Even with the free plan, Inc Authority provides free registered agent services for your LLC. This saves you the trouble of hiring a paid registered agent to serve as your company’s point of contact. 

• Secure Document Management: With Inc Authority’s free plan, you don’t need to worry about losing the paperwork associated with your LLC. It provides a secure online database to store your operating agreements, annual reports, etc. 

• Tax Advisory: Inc Authority’s services don’t just stop at business formation. It also provides tax advisory services from experts who will guide you through the process of choosing a suitable tax structure that will maximize your tax savings. 

• LLC Formation: This is the main service that Inc Authority offers. Its team of experts guides you through every step of forming an LLC in Maine, ensuring that you provide all the necessary documents and make no mistakes when filing them. 

• S-Corp Election and Filing: Are you thinking of choosing an S-Corp tax structure for your LLC in Maine? Not a problem. Inc Authority’s professionals will help you review and file the S-Corp election form in no time and get the special tax status. 

• Business Funding Analysis: Your LLC needs adequate access to funding sources in order to grow and expand. Inc Authority recognizes this need and assesses your short-term finance needs and provides reliable funding options for you.

The free LLC formation plan gives you the basic features you need to set up a functional LLC in Maine. However, if you’re looking for more personalized services, you should consider the paid plans.

Price: Free

This plan provides the features in the free plan, with the following additional benefits:

• LLC Operating Agreement: Your LLC needs to have an operating agreement to guide how the company will function. Inc Authority will provide professional templates to help you draft a comprehensive operating agreement for your LLC in Maine. 

• Employer Identification Number: Maine law mandates all LLCs to get an EIN for tax identification purposes. The Starter plan gives you access to experts who will make the EIN application process as seamless as possible for you.

• Corporate Forms and Documents: Establishing an LLC in Maine involves different types of forms, documents, and legal paperwork. With this plan, Inc Authority will give you the guidance and templates needed to draft the necessary documents. 

• Annual Compliance Reminders: It can be difficult to remember all the annual compliance requirements your LLC in Maine must keep up with. Inc Authority lets you focus on your business by sending reminders to help you stay compliant.

• In-Depth Tax Consultation: While the free plan comes with basic tax advisory services, the Starter plan gives you a more detailed look into your tax structure. Inc Authority’s experts will offer more personalized insights to maximize your taxes. 

• Web Domain + 5 Business Email Addresses: In this digital age, establishing an online presence for your business is necessary. Inc Authority will provide  5 business email addresses and a web domain to match your business name. 

Price: Custom

Take a look at the additional benefits you’ll get over the Starter plan. 

• Customer Success Advisor: When you choose the Fasttrack plan, which is Inc Authority’s highest-tier plan, you get a dedicated customer success advisor who will be your point of contact at every step of the way. They’ll answer your questions and help you make the best decisions concerning your LLC in Maine. 

• Private Banking Specialist: Besides a customer success advisor, you’ll also be assigned a private banking specialist to assist you with the financial planning aspect of your business. They’ll ensure you understand how to streamline your finances and help you choose the most suitable business banking options.

• Personalized Business Advisory: Inc Authority is not just concerned about helping you start your LLC in Maine. It also offers additional services to ensure your business is running as it should. With the Fasttrack plan, you’ll get business advisors to help you create a solid business plan that meets your goals.  

• Expedited Preparation and Filing: Although the Maine state government offers expedited filing for some LLC formation processes, you’ll have to pay extra for it. The Fasttrack plan automatically includes expedited preparation and filing. This means you can get access to same-day filing and processing at no extra cost. 

The Fasttrack plan is the most expensive plan Inc Authority offers, but it comes with more personalized services tailored to your specific business needs. If you’re working with a limited budget and can afford to be patient, you can start with the Free plan.