How Much Does an LLC Cost in Maine (Formation Fees Revealed)

Starting an LLC in Maine is a smart move for your business if you want personal asset protection and taxation benefits.

But there are some costs associated with doing so, and it's essential to be aware of these before beginning the process.

We consulted our team of licensed LLC experts and reviewed the Maine Secretary of State's website for accurate documents and cost details.

Here's everything you should anticipate cost-wise regarding LLC formation in Maine.

Quick Summary

How Much Does an LLC Cost in Maine?

An LLC in Maine costs $178 to file the Certificate of Formation online or $175 if you file by mail. Additionally, there are other costs that you may bear during the process, including name reservation, Maine registered agent fee, business licenses, annual reports, and more.

Maine LLC Filing Fee

As a business owner, your Maine LLC will be formally constituted whenever you submit the required paperwork to the Secretary of State [1].

During the registration process, you must pay the processing fee of $175 ($178 online) and attach your Certificate of Formation together with a Customer Contact Cover Letter to the SOS department.

Before submitting these forms, verify the details, such as the LLC name, filing date, registered agent contact details, and official signature.

Note the standard processing by the Maine Secretary of State is 30 to 35 business days.

However, expediting your filing is also a paid option. Same-day processing costs $100 more, and 24-hour processing costs $50 more.

Maine Registered Agent Service Fee

Every limited liability company must designate a registered agent who collects statutory letters on your corporation's behalf.

The Model Registered Agents Act, Chapter 6-A, mandates registered agents to have a street address in Maine.

During regular business hours, they must be ready to take service of process and other legal correspondence.

You must include the details for your registered agent on the Maine Certificate of Formation.

Maine enables you to operate as your own registered agent, but you must be present in the same physical place every working day of the year. If this does not work for you, consider employing a registered agent.

Maine registered agent service fee ranges between $40 and $300.

You will be alerted immediately of any service of process or other legal document receipts if you choose a professional provider.

All your legal papers will be promptly scanned and stored in your internet portal, where you can view them anytime.

Maine Business Tax

Maine LLCs are pass-through structures for tax purposes. As a result, you won't have to pay company taxes.

Instead, the LLC's earnings "flow through" to its owners, who are then in charge of declaring the payments on their tax reports and incurring the 15.3% federal self-employment payroll tax.

Moreover, the Maine income tax on business revenue is due from shareholders and workers. Depending on the sum of income declared, state rates for income taxes change.

A 5.8% tax rate is applied to an income threshold under $23,000, while a 7.15% tax rate is applied to business revenue exceeding $54,450 [2].

Other LLC Filing Costs

Apart from the initial registration fees, you may incur other filing costs when starting a Maine LLC. These costs include the following.

1. Name Registration

You can secure your business name by submitting an Application for Reservation of Name to the Maine Secretary of State.

This is the right move if you know which name you'd like to call your LLC but aren't quite ready to launch your firm.

You'll have to pay $20 for this service, and no other company may use your safeguarded name for 120 days from the start of the reservation.

Check to see if the LLC name you want is available in Maine before reserving it.

2. DBA Name Filing

You must register a DBA with the Maine SOS if your LLC plans to conduct business using a name other than the one stated on your Certificate of Incorporation.

The Secretary of State will receive your Declaration of Intention to Transact Business Under an Assumed or Fictitious Business Name. That will set you back $125.

3. Maine Annual Report Fee

Maine requires you to file an annual report to maintain the information about your LLC current with the Secretary of State’s office.

A Maine annual report maintains the legitimacy and legal compliance of your LLC so that it may continue to operate legally.

The document is verified and filed with the Maine Secretary of State, and you must also pay the processing fee to complete the process.

The annual fee for the Maine LLC Annual Report is $85, and you must pay this fee every year as long as your LLC is operational.

4. Maine Certified Document Copies

Throughout the course of running your Maine business, you may require certified copies of vital records, including your Maine Annual reports or Certificate of Incorporation. These certified copies are important for many reasons. 

For example, a foreign state needs an accredited document copy if, as your company expands, you want to move your LLC there.

Copies that are state-certified cost $5 + $2 for each page.

5. Business Licenses

You might need extra business licenses based on your LLC's location in Maine and your sector [3]. For instance, you could require a City Business Permit if you run an LLC in Portland.

Depending on your location and profession, these additional business licenses for an LLC may cost more or less, although they are often not expensive. The state or local municipality can issue these permits.

6. LLC Operating Agreement

All LLC owners are required by the Maine Secretary of State to draft an operating agreement.

Operating agreements are legal documents that outline how a corporation will conduct voting, nominate new shareholders, and dissolve.

Your operating agreement may be oral or in writing in accordance with ME Rev. Stat. 1531, but we advise writing it down because it offers superior constitutional immunity.

You can draft the operating agreement for yourself at zero cost or hire an attorney to create it for a filing fee of $100-$300.

7. Maine LLC Certificate of Existence

A certificate of existence from the Maine Secretary of State demonstrates that your LLC is legitimately registered and current with the agency.

When your company expands, there may be circumstances where you need to provide a Certificate of Existence to a third party, such as when you're requesting a business loan.

It costs a filing fee of $30 to apply for a Maine Certificate of Existence. And this document is issued to LLCs that are compliant with state regulations.

8. Employer Identification Number

An EIN is like a security number for your LLC that the IRS grants. You will want an EIN if you intend to employ people so they may use it to identify your company when they file their taxes.

Additionally, an EIN is a necessary digit code that financial institutions ask for when you want to open a business bank account.

Send the IRS the Employer Identification Number Application (Form SS-4) to obtain an EIN. This submission is free if you do it by yourself, and you can complete it online, by email, or by phone.

However, if you hire a professional Maine LLC formation service, EIN registration can cost you a filing fee of $50-$100.

Foreign LLC Registration in Maine

You must incorporate a foreign LLC in Maine if you founded your LLC in a different nation but want to conduct business there.

You must submit a Maine Statement of Foreign Qualification to Conduct Activities and the $250 filing fee to complete a foreign LLC registration in Maine.

FAQs

Do You Need Professional Help with Your Maine LLC?

Forming an LLC in Maine gives you tax advantages over other business structures. Plus, it is easy to set up and manage an LLC in Maine, even if you are new to the LLC industry.

However, if you want to get your Maine LLC formed quickly and avoid costly mistakes, hiring a professional Maine LLC service might be your best option.

In addition to their professional and experienced staff, they incorporate automated technology into their filing systems and give you a personalized dashboard to monitor your LLC paperwork for future compliance filings.

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References:

1. https://www.maine.gov/sos/cec/corp/llc.html
2. https://www.maine.gov/revenue/faq/corporate-income-tax
3. https://www.maine.gov/portal/business/licensing.html