With an economy hitting midground, Maine is still one of the most business-friendly states across the nation. Straightforward regulations and a collaborative business environment make it attractive for multiple entrepreneurs-to-be.
Small businesses represent 99.2% of all enterprises in the state and an LLC structure is extremely popular among startuppers. In addition, the state allows certified specialists to operate using a special LLC type. So let’s consider how to form a PLLC in Maine.
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According to Maine law, you are entitled to register a professional LLC to legally back up your business in this state if you are one of the following certified professionals:
Before creating a PLLC in Maine make sure that:
If you qualify for PLLC formation, registering this type of entity in Maine is not something you can’t handle on your own. It’s a relatively easy five-step process and our guide will take you through it.
It’s the prime step to take since your filing application won’t be even accepted by the state regulator unless your PLLC name meets the naming requirements that are in force in Maine:
Notably, if the targeted moniker appears available in Maine and you really like it, you can put your projected PLLC name on hold in the state for a period of up to 120 days. It’s a great option if you are not ready to file yet and don’t want your name version to be stolen.
To initiate PLLC registration in Maine, you should find a registered agent (RA). An RA is a statutory rule for all types of incorporated entities across the US. And the state of Maine is not an exception.
The good news is that RA regulations in Maine are neither strict nor limiting. You can appoint:
The key requirement is a physical address in the state and an RA’s consistent presence at that address during normal business hours to receive and process your company’s official correspondence.
With that, your RA options in Maine are quite diverse:
Our best recommendation for an RA position is a registered agent service in Maine. It won’t hit your budget too much and you can rest assured the job will be done by professionals.
At this point, you are ready to file a PLLC in Maine. Submitting formation documents to the Secretary of State is what the PLLC registration is formally about.
In Maine, the LLC statute is called a Certificate of Formation. You’ll have to complete Form MLLC-6, print it out, and mail it to the following address:
Secretary of State
Division of Corporations, UCC, and Commissions
101 State House Station
Augusta, ME 04333
Notably, the state of Maine allows for mailed filings only. You can’t file online or bring your documents to the state office in person.
The Certificate of Formation is a sort of your company’s business card. It covers basic information and data that will appear in state records after your Maine PLLC registration. When applying, you should check that the following data is entered correctly:
While this document is optional in many other US states, it’s mandatory in Maine. Under the Revised Statutes Section 1531.1.B of the state legal code, you should compile this document after your PLLC registration and store it with your other business docs.
Since an Operating Agreement is the company’s bylaw, state filing is not required. However, the importance of this instrument shouldn’t be underestimated. It will serve to:
Unlike a Certificate of Formation, an Operating Agreement is a comprehensive document customized to an individual business scenario and situation. It should reflect agreements and covenants between your Maine PLLC members regarding the following points:
An EIN is an Employer Identification Number or a Federal Tax ID. It’s issued by the Internal Revenue Service (IRS) for free to make your business visible to tax authorities and other official bodies and agencies.
By function, the EIN works as a Social Security Number for a person. You’ll need it to identify your company as a taxpayer and it’s a requirement in the following situations:
As stated above, in Maine, you can file your PLLC formation documents only by mail. The state filing fee to pay for the entity registration is $175.
While a state fee is a bare Maine PLLC cost, there might be some other expenses that will pop up on your final cheque:
|An expedited filing fee for the same-day processing||$100|
|A name reservation fee to keep your desired name version intact until you are ready to file||$20|
|DBA registration fee to use a different company name for marketing purposes||$125|
|The RA service for an annual subscription||between $50 and $300|
When forming a PLLC in Maine, state registration is only a part of the whole affair. To get your business off the ground and operate it on the right foot, there are a few important post-formation steps you should complete.
Avoid a typical mistake of many beginner businessmen who choose to use their personal bank accounts for business. Mixed funds will put your corporate veil protections at risk and your personal assets could be claimed to settle business commitments.
By opening a dedicated account for your newly formed entity, you’ll split personal and business cash flows from the start to prevent any confusion and make accounting a lot easier.
Similar to multiple other states, Maine doesn’t require a state-level license. It means you won’t have to pay for operating a business in its jurisdiction.
However, most likely than not, you’ll have to get some types of permissive documents under local requirements. Check with your municipal office for local licenses and permits pertaining to your business.
Besides, professional LLCs in Maine might be called to get some specific business certifications depending on the type of service you provide and the industry you work in. You can find appropriate licensing resources and info on the Maine government website.
Business comes not only with opportunities but also with risks. And you can manage those risks and minimize the damage by maintaining proper insurance for your business.
The most common types of insurance policies for PLLCs include:
By creating a PLLC in Maine, you’ll get a number of benefits both for yourself and for your business. On the other hand, you’ll also have certain commitments. Thus, to maintain your business’s lawful status in Maine, you need to:
Match annual reporting requirements and file your report before June 1 each year and pay an $85 fee.