How to Start a Business in Maine
Maine Business Facts
Small businesses make up a great part of Maine’s economy. In 2014, three-fifths of the private workforce comes from companies with less than 500 employees. One of the big challenges Maine is confronted with is the sparse population. Hence, the need to strengthen tourism in Maine is highly imperative.
Major Companies Headquartered in Maine
Maine is the headquarters of many major companies including L.L.Bean, DEXX Laboratories, Ahlstrom-Munksjö, TD Bank, and Hannaford Supermarkets.
Startup Environment
Starting a business in Maine is easy because of the ready access to capital, collaborative environment, and supportive communities. For many startups, conforming to state regulations and obtaining mandatory licenses or permits is reasonably straightforward and simple.
Step 1: Decide on a Business Structure
There are 3 basic options: a Corporation, LLC or DBA. Click here to learn more about business entities.
- A Corporation is a separate entity (provides liability protection to the owners) with a structure that includes shareholders, directors and officers. It’s more complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
- An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity and provides very easy management (doesn’t require directors or officers) and taxation. The LLC has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.
- A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
Step 2: Choose a Business Name
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Maine, but we highly recommend you do the following before searching Maine state databases:
- Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
- Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
- Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself. Tip: Search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.
- Make sure your company name choice is available by searching the Maine Business Entity Database and doing a name search on the State of Maine website. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).
NOTE: Familiarize yourself with the Maine naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.
Restrictions on Maine Business Name & Business Purpose
- Business names should be unique.
- New Hampshire corporate names may have the following approved designations:
- Corp.
- Corporation
- Inc.
- Incorporated
- Limited
- Ltd.
- The use of the following words and phrases in corporate names is considered “restricted” in New Hampshire:
- Banc
- Bank
- Banking
- Banque
- Insurance
- Savings
- Trust
Step 3: Register the Business
Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in Maine.
How to form an LLC in Maine
- File the “Articles of Organization” with the Maine Secretary of State LLC Division.
- Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.
How to Incorporate in Maine
NOTE: When registering a new company the Secretary of State can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.
TIP: Check our order form to see how long Maine is currently taking to process regular and expedited orders.
How to File a DBA in Maine
- Check the state database of business names.
- Complete the DBA registration form.
- The filing fee varies depending on the town.
Optional Considerations when registering a Maine business
- Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).
Ready to register a business in Maine?
- We specialize in registering businesses in Maine.
Step 4: Obtain your Federal Employer Identification Number (FEIN or “EIN”)
- Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.
- To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.
- You can read more about corporate tax laws in Maine on the Maine Department of Revenue Taxation Division site.
Ready to Start Now? Let Us Do The Work
Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.
Step 5: Open Company Accounts: Bank and Credit Cards
To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).
Top 5 Major Banks in Maine
- Camden National Bank
- Bangor Savings Bank
- KeyBank
- TD Bank
- People’s United Bank
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Obtain Business Licenses and Permits
Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).
TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.
Step 7: Annual and Ongoing Requirements
DBA: Your Fictitious Business Name should be valid for 5 years, with option for renewal.
LLC: Maine corporations are required to file a Periodic Report with the Maine Secretary of State by June 1 each year, in addition to general taxation. Information on your business’ taxes can be found here.
Corporation: Business in Maine should file a report by June 1 annually to the Division of Corporate and Consumer Services. LLCs and Corporations will pay a filing cost of $85.
Important Maine Contacts
Maine Secretary of State
Bureau of Corporations, Elections and Commissions (for Corporation and LLC filings)
101 State House Station
Augusta, Maine 04333-0101
Phone: 207-624-7736
Maine Taxation Departments
Maine Labor and Employment Departments
Maine Startup Resources
1. Small Business Administration (SBA) Maine District Offices
2. SCORE Maine
- SCORE Maine’s 121 mentors provide FREE services at numerous locations across the state with more than 3,100 clients counseled in 2017. SCORE helped create 578 jobs in Maine and assisted 386 Maine new businesses started in 2017.
- Portland SCORE, conveniently located in downtown Portland, offers free, confidential small business mentorship and workshops.
3. Maine Legal Statutes
4. Maine Chambers of Commerce
- Maine State Chamber of Commerce
- Mid-Maine Chamber of Commerce
- Southern Midcoast Maine Chamber
- Bangor Region Chamber of Commerce
5. MaineBusinessWorks
- MaineBusinessWorks, a program of Maine Small Business Development Centers and the Department of Economic & Community Development, provides access to a broad array of business development assistance available throughout the State of Maine including business education, financing programs, and small business information and/or assistance.
6. Angel.co Maine Startups
- A list of all 230+ Maine Startups and 4,800+ Maine angel investors registered with Angel.co. Good research resource.
7. Maine Business News
8. DECD
- At Department of Economic and Community Development DECD, we are more than two dozen experts whose broad mission is to help communities and businesses prosper through a variety of programs providing everything from targeted tax relief to community block grants to tourism marketing.
9. Maine Small Business Development Center
10. Maine Environmental Leader Program
- The Environmental Leader program is a self-guided process offered by Maine DEP (Department of Environmental Protection) as part of its sustainability efforts that encourages lodging facilities, restaurants and grocers to implement selected initiatives from those offered in the department developed workbook to achieve points toward certification.
