How to Dissolve an LLC in Maine? (Step by Step Guide)

Delina Chantel Yasmeh
Published by Delina Chantel Yasmeh | Author
Last updated: February 21, 2024
FACT CHECKED by Lou Viveros, Growth & Transition Advisor
Methodology
We meticulously research and verify the information presented in our articles. By consulting reliable sources and ensuring factual accuracy, we are committed to providing readers with well-informed, trustworthy content.

If you own a Maine LLC and decide to terminate the business, there is a systematic approach to dissolve the company effectively.

As a legal expert and business advisor with over 10 years of experience, I'll provide you with a detailed guide on how to dissolve your Maine limited liability company.

Quick Summary

  • To dissolve an LLC in Maine, comply with your company's operating agreement and follow all state requirements.
  • File the Articles of Dissolution or Certificate of Cancellation to the Maine Secretary of the State by mail, fax, or in person.
  • The dissolution steps outlined become particularly relevant in light of Lending Tree's data, which shows a 22.5% failure rate for Maine businesses in their first year, highlighting the importance of preparedness for LLC owners.
  • In my view, the detailed steps for dissolving an LLC in Maine highlight the importance of strategic planning and legal compliance in the lifecycle of a business.


6 Steps to Dissolving an LLC in Maine

Steps to dissolve an LLC in Maine should be followed to legally terminate the business.

Step 1: Vote to Dissolve the LLC

A group of employees discussing about how to dissolve an llc in maine

Follow the provisions in your Maine LLC Operating Agreement. It is important to read through this agreement carefully and make sure that you understand the steps involved in dissolution.

Step 2: Notify Creditors About Your LLC's Dissolution

In light of the 4,571 Maine establishments that closed from March 2021 to March 2022, as per the US Small Business Administration, the process of dissolving an LLC in Maine, including notifying all creditors, becomes even more pertinent [1].

The notice should encompass critical details, including the deadline for creditors to submit their claims, which is typically determined by state law. It should also provide clear instructions on how and where creditors should submit their claims.

We were thorough in notifying all our known creditors as the notice we sent served as a legal notification of our LLC's dissolution and underscored their entitlement to collect any outstanding debts.

Step 3: File Final Tax Returns and Obtain Tax Clearance

Close all tax accounts including business taxes, filed federal taxes, and any other tax obligations registered under your Maine business name.

You will need to contact the Maine Revenue Services and request that they close your company's tax account. You can find their contact information on their website.

Once you have closed all tax accounts, you will need to file a final return with the state of Maine.

This return must include all information about your LLC assets and liabilities. Be sure to keep copies of this return for your records.

In our case, after completing all the final returns we applied for a tax clearance certificate from the Maine Revenue Services as proof that our company has paid all of its Maine LLC taxes and is up-to-date on its filings.

Step 4: File Articles or Certificate of Dissolution

Two coworkers looking at a laptop

File the Articles of Dissolution, also referred to as Certificate of Cancellation, to the Maine Secretary of State [2]. You can do this by mail, fax, or in person. The filing fee for Maine Articles of Dissolution is $75.

We submitted our document through the mail and included a check for the filing fee. You can also attach a money order.

"When filing the Articles of Dissolution in Maine, ensure that your business name, address, and contact information are clearly stated on the form. Additionally, it is essential to specify the date and the reason for the dissolution."

-Jon Morgan, Co-Editor & Co-Founder of Venture Smarter

Once our form was processed, we received a Certificate of Cancellation in the mail.

Related Articles:

Step 5: Distribute Assets

A person looking at a black folder

In the dissolution of our Maine LLC, the allocation of assets was a meticulously managed procedure.

After settling all outstanding debts and commitments, the remaining assets of the LLC were distributed among the members following the terms specified in the LLC's operating agreement

If your LLC lacks any distribution terms, you must follow the rules dictated by Maine state law. This typically involves determining the share of each member based on their ownership percentage or their initial investment in the LLC.

The process must be carried out transparently and fairly to ensure that all members receive their rightful portion of the assets, which can encompass cash, tangible assets, or any other property previously held by the Maine LLC.

Step 6: Close All Accounts and Cancel Licenses and Permits

In the process of concluding the dissolution of a Maine-based LLC, the closure of accounts and the revocation of licenses and permits is a pivotal final step.

This step entails the methodical closure of all business-related accounts, including bank accounts, lines of credit, and any other financial accounts linked to the LLC, thereby ensuring the complete disentanglement of all financial connections.

Furthermore, the LLC must nullify any business licenses, permits, or registrations it may possess. This is a critical measure to legally terminate the LLC's operations and mitigate any potential future liabilities.

FAQs

What Does It Mean When a Company Has Been Administratively Dissolved?

Administrative dissolution is when the state of Maine dissolves your LLC for failure to pay franchise tax, submit annual reports, and hire a registered agent.

To reinstate your dissolved Maine LLC, you must file all required paperwork and pay tax obligations.

How Much Does It Cost to Dissolve an LLC in Maine?

It costs $75 to dissolve an LLC in Maine. The filing fee covers the processing of the Certificate of Cancellation.

How Long Does It Take to Dissolve an LLC in Maine?

It takes 5-10 business days to dissolve an LLC in Maine after the Secretary of State receives your application.

References:

  1. https://advocacy.sba.gov/wp-content/uploads/2023/11/2023-Small-Business-Economic-Profile-ME.pdf
  2. https://www.maine.gov/sos/cec/forms/mbca/mbca11.pdf

About The Author

Author
Delina Chantel Yasmeh, J.D./Tax LL.M, specializes in Mergers and Acquisitions at Deloitte and PwC, managing billion-dollar transactions. Educated in Accountancy at California State University and holding advanced degrees from Loyola Law School, she is highly skilled in tax law. Delina also dedicates time to pro bono work for women and children.
Learn more about our editorial policy
Growth & Transition Advisor
LJ Viveros has 40 years of experience in founding and scaling businesses, including a significant sale to Logitech. He has led Market Solutions LLC since 1999, focusing on strategic transitions for global brands. A graduate of Saint Mary’s College in Communications, LJ is also a distinguished Matsushita Executive alumnus.
Learn more about our editorial policy

You May Also Like

Leave a Reply

Your email address will not be published. Required fields are marked *