What is a DBA?
It’s not uncommon for a business entity to have two different names. The first is the legal name filed with the state, and the second is the DBA Maine companies use for diverse purposes. The legal name can be primarily used to handle interactions with the state. Things like paying taxes or acquiring licenses and permits usually require LLCs to file paperwork using the primary legal name.
A Maine DBA allows enterprises to separate the legal name from the fictitious name the public knows. It’s essential to understand that you can onboard multiple DBAs in Maine. With the exception of a sole proprietorship or partnership, states usually require companies to file for a certificate of assumed or fictitious name.
Benefits of a DBA
If you are opening your first LLC or considering the value of a DBA in Maine, a fictitious or assumed name provides wide-reaching benefits. These rank among the key reasons industry leaders adopt a doing business as title.
- A DBA separates business endeavors from companies named after their owners.
- It allows ventures to deploy a more memorable or distinctive company name.
- It helps separate new products and/or services from the original company’s purpose.
- Creates an opportunity to sync a domain name with the organization.
- Establishes greater credibility for outfits associated with a real person.
Disadvantages of a DBA
It’s important to keep in mind that a DBA in Maine is best utilized when connected to a legal entity. Sole proprietorships and partnerships can file for a certificate of assumed or fictitious name in Maine. While that strategy helps distinguish the activities from the people, they will likely not gain the liability protections of an LLC. That’s largely because a DBA is not a standalone legal entity that offers legal protections. To insulate yourself from being personally named in a civil action, it’s critical to have a legally recognized business entity such as a corporation or LLC. These are other disadvantages associated with a DBA in Maine.
- Does not provide separate tax identification.
- Must follow assumed business name restrictions.
- It does not protect personal and business assets.
- A DBA does not necessarily provide trademark protection.
- It may not guarantee exclusive naming rights to your business.
Consequences for operating with a DBA in Maine without registration
The consequences of operating under a fictitious name in Maine can be substantial. If you intend to operate a DBA in Maine, the state requires you to register the fictitious or assumed name. Failing to comply may result in negative actions, such as the following.
- Legal Ramifications: Fines and penalties assessed on a daily basis.
- Enforcement: The state could require your operation to cease and desist.
- Civil Lawsuits: Another company that files for a DBA by the same name could file a civil lawsuit against you personally.
- Reputational Damage: The organization, as well as its products and services, could suffer a tarnished reputation after being fined or sued.
Tax considerations
If you harbor any taxation concerns about acquiring a DBA in Maine, you can rest easy. The DBA Maine organizations utilize is an add-on to the legal entity. The fictitious or assumed name is not taxed separately. Other than adding the DBA to checks, internet platforms, and branding materials, it’s business as usual.
Filing for a DBA in Maine
Filing for a DBA in Maine typically involves gathering legal documents and following the requirements outlined on the Maine Secretary of State’s platform. The state requires you to follow certain established rules regarding the name. It may be prudent to make a short list of doing business as names handy. That’s primarily because not every option will meet the DBA Maine guidelines, while others may not be available.
Maine's name requirements
All Maine DBAs must be unique and easily distinguishable from those of other companies, sole proprietorships, and partnerships. It cannot be fraudulent or misleading in any fashion. The New England state also has a list of prohibited words that include profanity and obscenities, as well as monikers such as “bank” or suggesting it is part of a government agency. A fictitious name in Maine cannot use business entity labels such as LLC, Corp, or Inc. One of the caveats to registering a DBA is a prohibition on using the proper name for the Native American Tribe, Passamaquoddy. To use Passamaquoddy, you will need to gain express written consent from tribal leaders.
Begin with an Assumed Name search in Maine
Go to the Maine Secretary of State’s website and click on Corporation Search. This will take you to a web page where you can enter potential fictional names via keywords. Type in the name and click the tab. A list of business entities and DBAs that have already been taken will appear. Continue to input options until the search comes back blank.
Steps to register your DBA in Maine
If you are running a sole proprietorship or partnership, you’ll need to file the Maine DBA with your local clerk’s office. The Secretary of State’s platform has a Listing of Municipal Clerks & Registrars link. Type in the place where you plan to establish the operation, and the appropriate contact information should pop up. Contact the clerk for local DBA filing requirements. For LLCs, go to the Secretary of State’s website and follow these steps.
Step 1: Fill out the correct form
You will be required to fill out the form that applies to your particular entity type. Download the corresponding form and send in a hard copy. In-state companies file for an assumed name. Those headquartered outside the state use a fictitious name in cases where the DBA is not necessarily available.
Step 2: Pay the filing fee
The filing fee for an assumed name costs $125, and a fictitious name is $40. The state does not charge renewal fees.
Filing Online vs filing by mail
Maine is one of the rare states that does not have a digital DBA filing system in place. That means you’ll need to either present the documents in person or mail them to the following address:
Maine Secretary of State
Division of Corporations, UCC, and Commissions
101 State House Station
Augusta, ME 04333-0101
The department will review your request and render a decision on whether it adheres to the state’s naming regulations. An assessment of its uniqueness and the possibility of other similarly named organizations will be conducted.
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