What Is Maine Dissolution?
When you created your company in Maine, you needed the approval of the Secretary of State. This process officially registered your business. The same is needed when you close a company. The dissolution process informs the state about your company’s intention to cease all its business activities in the state.
Why Does A Company Dissolve?
Why do companies need to dissolve? – Companies have to dissolve to remove their liability for filing and tax obligations formally. Maine requires all business entities to submit formal paperwork for dissolution.
Who makes the decision to dissolve? – LLC members will decide on the fate of LLCs in Maine. Meanwhile, shareholders of the corporation will vote on a resolution that the board of directors has approved.
How long does it take to dissolve a business? – The time needed for a business entity in Maine to dissolve depends on how long it takes to complete all the necessary actions. Add to this the time it takes the state to process the documents, which is about 5-10 business days.
What Happens If Your Company Does Not Formally Dissolve?
Companies that do not dissolve formally remain in existence with the Secretary of State. Thus, they have filing and tax obligations. Failure to submit these requirements may lead to penalties.
Steps To Dissolve Your Business
To dissolve your business in Maine, your company should follow the steps the state has set.
1. File Articles of Dissolution with the state – An LLC has to file a completed Form MLLC-11C Certificate of Cancellation with the Bureau of Corporations, Elections, and Commissions of the Secretary of State. Meanwhile, a corporation has to submit Form MBCA-11 Articles of Dissolution to the same office. All forms must come with the Filer Contact Cover Letter and have original signatures. You can access the forms through the website of the Secretary of State.
2. Remove all liabilities and obligations – Liquidate the assets of the company and settle all its obligations. Follow the priorities based on the outline the law has set. Distribute any remaining assets depending on the interests and rights.
3. Give notice to any claimants – This task is optional, but it will be very helpful in protecting you from future problems. You may send a written notice to all known claimants and creditors. Explain to them that the company has filed for dissolution and notify them as to where and until when they can submit their claims. Do not forget to clarify that the company will no longer entertain claims after the deadline. You may also publish the notice in a newspaper to inform unknown claimants if there are any. It may even come in handy and serve as evidence in case someone raises concerns about their claims.
4. Tax clearance – The state does not require tax clearance when dissolving a company. However, you have to make sure that your company no longer has remaining tax obligations. You also have to clarify in the company’s IRS form that it will be the final return. It will be for federal tax purposes.
5. Close all bank accounts, credit lines, permits, and licenses – Close all business bank accounts to avoid legal problems in the future. You will also not be able to use them for other businesses or ventures. Your company may have also acquired permits and licenses for its operations. Cancel all of these to prevent fiscal obligations and protect your reputation.
How DoMyLLC can assist with streamlining the process
Following each step in the process of dissolving your business entity in Maine can be a bit overwhelming. You may need the help of an experienced professional. Our team of experts is ready to offer live support. We also provide personalized solutions. Contact us now and get the service that will cater to your company’s needs, especially during the Maine dissolution process.
Maine Dissolution FAQs
Is There A Filing Fee To Dissolve The Business?
The filing fee for normal processing is $75. You will have to pay an additional $50 for the 24-hour expedite service. The state also offers immediate processing for an additional $100 fee.
Do You Need The Department Of Revenue Clearance Before The Secretary Of State Will Accept Your Dissolution?
There is no need for you to secure a clearance from the Revenue Services to dissolve your company.
How Long Does The State Take To Process The Dissolution?
The state normally takes around 5 to 10 business days to process the documents of a company. However, it also offers expedited service for an additional fee. If you choose this, the state will finish the processing of your company’s documents within 24 hours.
When Can Another Business Use Your Company Name?
Maine does not have a name protection policy. So, your business name will be available for other entities to use immediately upon the dissolution.