Choosing to structure your Maine company as a limited liability company (LLC) comes with many advantages. That is why it is popular for many startups. The personal assets of LLC owners are protected against any debt or liability that the company incurs. At the same time, this legal structure allows flexibility when it comes to taxation. Being an entrepreneur, you will have many responsibilities. You have to manage the company well to achieve success. Additionally, you also need to make sure that your business remains compliant with all its state obligations including paying the correct LLC fees in Maine.
LLC Fees in Maine
Among the obligations of LLCs are required filings and various fees. The costs of starting and maintaining an LLC will depend on the state where you formed it. However, there are general expenses that you will have to prepare for when creating your company’s budget plan.
Forming Your LLC
The first main category of expenses associated with a Maine LLC refers to the costs of starting a business in the state.
- Reserving your LLC Name – Before filing your registration documents, you will need to make sure that your company name follows the naming guidelines of Maine. You need to include the phrase limited liability company or any of its abbreviations. It also has to be unique. That means you need to check that no other business entity uses the name in Maine. You may also reserve the company name for 120 days. The state does not require this. So, you do not have to do it. But, it will be a good idea if you do not want another entity to take the LLC name that you want while you are still preparing for the formation of your business. The fee for the name reservation is $50.
- Nominating a Registered Agent – The state requires all LLCs in Maine to appoint and maintain a registered agent. It can be an individual or third-party organization willing to receive legal correspondence, tax notices, service of process, and other important business mail on behalf of the company.
Here are the requirements you need to take note of when choosing a registered agent in Maine:
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- Individual Registered Agent
- Has a physical street address in Maine
- Should be at the given address during regular business hours
- Can be a member of the LLC
- Should be over 18 years old
- Commercial Registered Agent
- Should be authorized to do business in Maine
- Should have a physical street address in Maine and have someone available at the given address during normal business hours
- Individual Registered Agent
LLC fees for the registered agent will depend on who you choose. If you hire DoMyLLC to serve as your registered agent, you only need to pay $99 per year.
- Public Records Filing – To formalize and legalize your business operations in Maine, you will have to submit formal paperwork and pay the corresponding fee. You have to file a Certificate of Formation with the Secretary of State. The filing fee is $175. The standard processing time for LLC formation documents is approximately 14 business days. If you want to expedite the process and only wait for around 5 business days, you will have to pay an additional $50.
- Using a Fictitious Name (Optional) – You can use an alternate name instead of the LLC’s official legal name if you want. But you will have to register the assumed name, which is known as doing business as (DBA), by filing a Statement of Intention to Transact Business Under an Assumed or Fictitious Name with the Secretary of State. The filing comes with a $125 fee. Remember that filing for DBA can only be done after successfully registering your LLC with the state. The LLC will be the one applying for the assumed name.
Ongoing Compliance
The second main category of expenses associated with a Maine LLC includes the obligations of your company to ensure state compliance.
Annual Report
Your LLC will continue to have obligations for as long as it operates in Maine. Among these is the filing of annual reports. Doing this will confirm and update the LLC ownership and contact information. You have to submit the report by June 1 of every year. The filing fee is $85. You can get a preprinted annual report form from the website of the Secretary of State.
Business Licenses and Permits
Depending on the type of business that you have and the location, your LLC may have to secure certain business licenses and permits. To find out if you have to secure state licenses, check the Department of Economic and Community Development. As for local licenses and permits, check with the clerk for the town, city, or county where the primary place of business of your LLC is located.
Business Taxes
Generally, LLCs are pass-through entities when it comes to taxation. That means that the business owners report profits and losses in their individual tax returns. Maine is among the states that do not impose a separate tax on LLCs.
In some cases, business owners decide to have their LLC taxed as a corporation for tax purposes. If you choose that, your company will have to file income taxes at a corporate level. The cost of your corporation income tax will depend on the profit. You will have to file a corporation tax return using Form 1120 with the Revenue Services.
Employer Taxes
If your LLC has employees, you will need to pay state employer taxes. You will have to file an application for tax registration with the Revenue Services.
Sales Taxes
Maine imposes multiple sales and use tax rates. Most sales of tangible personal property and services have a general rate of 5%. However, there may be different rates depending on the goods and services.
Getting Help With LLC Fees In Maine
Knowing the LLC fees in Maine can help you manage your company’s budget. However, that is only one of the multiple responsibilities you need to take care of as a business owner. You will have to handle various formal paperwork and filing processes. If you think you need help, you can hire the services of a reliable third-party organization like DoMyLLC.