Maine Foreign Qualification
Businesses planning on operating in Maine but that are based in another state will have to take steps to qualify for operations in Maine. Foreign qualification is required in order to remain fully compliant, and understanding how it works is key for any business ready to branch out into Maine.
What is Foreign Qualification?
Foreign qualification is the process of registering a business to operate in a state other than the one it was formed in. If your business currently exists outside of Maine, you must foreign qualify in order to legally have any kind of physical business presence within the state. This includes everything from a storefront to an office to just having employees working in Maine.
Why Does A Company Need Foreign Qualification?
Why You Need To Do It – It’s required by law, to put it plainly. Businesses must foreign qualify if they wish to legally have any kind of physical presence within Maine.
When Should You Do It? – It’s important to begin the process as soon as your company finalizes its plans to start business within Maine. The sooner you begin, the less likely it is that you’ll face any kind of delay when it is time to begin operations. Generally, you will need Maine foreign qualification if your company falls under any of the following criteria:
- Has a physical presence in Maine
- Buying a property there
- Have remote employees
- Accepts orders in Maine
- Owns a bank account in Maine
What Happens If Your Entity Does Not Foreign Qualify?
Failure to foreign qualify means that your business can’t bring forth a lawsuit in Maine at all. It also can bring numerous penalties, fines, and fees as well as potential tax related issues such as back taxes and criminal or civil tax-related fees.
Steps To Obtain Foreign Qualification
There are several steps that a business must take in order to receive Maine foreign qualification. These include the following.
1. Obtain Certificates – Maine requires LLCs to file a Statement of Foreign Qualification to Conduct Activities. Corporations should file an Application for Authority. You can download both forms from the Maine Secretary of State website. Aside from this form, you will also need to obtain a Certificate of Existence from your home state.
2. Collect And Submit Information – The basic information that will be requested includes things about your business. Fill out the documents as requested, providing all applicable information honestly.
LLC
- Name of LLC in home state
- LLC name following Maine’s requirements
- A fictitious name, if your LLC name is unavailable
- The original date of formation
- Name of home state
- The principal office street address
- The purpose of your LLC’s business in Maine
- Registered agent information
- Names and addresses of each manager, if any
- The date when your LLC will commence activities in Maine
- An authorized signature
Corporation
- The original name of the Corporation
- A fictitious name if the original name is unavailable
- Registered agent information
- Name of the home state
- The original date of formation
- The principal office street address
- A mailing address, if applicable
- The names and addresses of all officers and directors
- An authorized signature
3. Appoint Registered Agent – Next, appoint your registered agent. This is the person or entity responsible who receives documents from the government and handles much of the paperwork involved in compliance. To simplify things for themselves, most businesses rely on third party providers like DoMyLLC to serve as their registered agents.
4. File The Application – Once you fill out the information, you’ll be ready to file the application. Return it to the Secretary of State along with the filing fee of $250.
5. Ongoing Maintenance – Maine requires all businesses to file an annual report to maintain their compliance. This is due by June 1 of each year and can be done by mail or online. There is an $85 filing fee.
What Is the Difference Between Foreign Qualification And Incorporating?
Incorporation is a process that creates a new business entity. Foreign qualification doesn’t create a new business or modify the existing one. It merely allows a company to operate outside of its home state legally.
How DoMyLLC Can Assist With Streamlining The Process
We understand that running a business is a huge process. That’s why we work to simplify things for our clients. We do all of the work involving foreign qualification and can serve as your registered agent. This removes the workload and the hassle from you and lets you focus on running your business. We offer:
- Dedicated account managers
- Ongoing, unlimited customer support
- Name availability checks
- Full filing and registration for foreign qualification
If you’re serious about getting the best results from your Maine foreign qualification, we’re here to help. Contact us today to learn more.
Maine Foreign Qualification FAQs
What Paperwork Is Required?
You’ll be required to submit a Certificate of Existence along with The Statement of Foreign Qualification To Conduct Activities.
What Fees Are Needed?
Maine charges a filing fee of $250.
Who Can File For Foreign Qualification?
Any business operating in another state that wishes to move operations into Maine will have to file.
Do You Need An Attorney For Foreign Qualification?
You will not need an attorney to register for foreign qualification. However, you may wish to speak to your lawyer to ensure full compliance and legal protection for your business.
What Information Is Needed For The Certificate Of Authority?
Basic information about your business including:
- Business name
- Date of formation
- Type of business
- Names of managers or members
- Current physical and mailing address
- Registered agent information
What If My Name Is Not Available?
You’ll have to choose a fictitious name and file under it. This will have no impact on your name when operating in states outside of Maine.
Maine Business Resources
Maine Office of Secretary of State
Phone:
(207) 624-7736
Address:
Maine State Department
101 State House Station
Augusta, ME 04333
If you’re interested in more info on foreign qualification, call 888-366-9552.