Everything Needed to Start a Business and Form Your Maine LLC or Corporation
- Maine Business Facts and Environment
- Step 1: Decide on a Business Structure
- Step 2: Pick a Business Name
- Step 3: Register the Business
- Step 4: Obtain Your Federal Employer Identification Number
- Step 5: Open Company Bank and Credit Accounts
- Step 6: Set-up An Accounting System
- Step 7: Obtain Licenses and Permits
- Step 8: Hire Employees (if applicable)
- Step 9: Obtain Business Insurance
- Step 10: Systemize and Organize
- Step 11: Branding and Marketing
- Step 12: Annual and Ongoing Requirements
- Important Maine Contacts
Maine Business Facts and Environment
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 DBA, a Corporation, or an LLC. Click here to learn more about business entities.
- 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.
- A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. 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 but provides very easy management (doesn’t require directors or officers) and taxation. 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.
Step 2: Pick a Business Name
Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (changing your business name is possible, but the best practice is to keep the original name). 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.
- Maine 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 Maine:
- 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
- File the “Articles of Incorporation” with the Maine Secretary of State Corporate Division.
- Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
- Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.
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.
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.
- Learn about how our fast and affordable company formation services can work for you
- Read our verified reviews and 100% Satisfaction Guarantee
- Contact our friendly support team if you have any questions
Step 4: Obtain Your Federal Employer Identification Number
Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLCs 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.
TIP: We will obtain your EIN for you if we form your company.
Step 5: Open Company Bank and Credit Accounts
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 about what you need to do 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
Click here to view a list of our recommended banks in our Vendor Network.
TIP: Our business formation service includes a free banking resolution for your use.
Step 6: Set-up An Accounting System
Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.
Company documents generally are required to be kept for 3 years, including a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments, or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.
Review our list of Accountants, Accounting Software, and Bookkeepers in our Vendor Network.
Step 7: Obtain 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 8: Hire Employees (if applicable)
If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.
Review our list of recommended Payroll Providers in our Vendor Network.
Step 9: Obtain Business Insurance
There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.
Click here to view our list of insurance providers in our Vendor Network.
Step 10: Systemize and Organize
Prepare the business as if someone needed to take it over and run it for you. This means your company needs a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.
Step 11: Branding and Marketing
Now that you’ve set up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.
Step 12: Annual and Ongoing Requirements
DBA: Your Fictitious Business Name should be valid for 5 years, with the 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: Businesses 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.
Click here to view our MyCompanyWorks Premium™ service which can automate most of your ongoing compliance tasks.
Important Maine Contacts
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
- Maine Business Corporation Act – note this is the broad code that includes various other topics including Maine’s business corporations.
- Maine Limited Liability Companies – the specific act that applies to Maine LLC’s.
- 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. Maine Angel Investors
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
- The Maine Small Business Development Centers (Maine SBDC) provide comprehensive business management advice, counseling and education.
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.
