It’s a common misconception that starting an LLC is incredibly expensive. In reality, it’s a lot more affordable than most people realize. In fact, forming your company is probably the least expensive part of starting a new business compared to things like purchasing inventory and marketing spend.
However, there are a few charges associated with forming an LLC that business owners in Maine need to be aware of. In this article, we’ll go over all the individual expenses that you’ll be required to pay to get your company up and running.
There are several steps you’ll be required to complete to form a Maine LLC, and each one comes with its own expenses. If you want a complete breakdown of how to form an LLC in Maine, check out our Maine LLC formation guide. For now, though, here is a brief breakdown of the steps required and the costs associated with each one:
The first step when forming an LLC in Maine is to choose a name for your company. However, before you can pick a name, you first need to ensure that the name is available in the state. Maine requires all LLC names to be unique and distinguishable from the name of any other company doing business in the state, which means you’ll have to perform a business name search to ensure the name you want to use isn’t already taken. Thankfully, conducting a business name search in Maine is free and can be done using the Corporate Name Search tool on the Maine Secretary of State’s website.
If you would like to reserve a business name so that it is guaranteed to still be available when you’re ready to form your company, you’ll need to pay a $20 fee. Also, if you plan to operate your LLC under a different name than your registered LLC name, you’ll need to file a DBA (Doing Business As) for $125.
Estimated Cost for Naming Your Kentucky LLC: $0 – $35
Filing articles of organization with the state is the core step when forming an LLC in Maine. This document officially registers your LLC with the state, providing legal recognition of your business, and it can be submitted either online or by mail. When you submit this filing, you will be required to pay a filing fee of $175.
You also have the option to pay for expedited processing when filing articles of organization. Typically, it takes 5-10 business days for filings to be processed once they are received. However, Maine offers two expedited processing options: for a $50 fee, you can ensure that your filing is processed the next business day, and for a $100 fee it will be filed the same business day.
Business owners in Maine are required to appoint a registered agent for their company, and this is someone who is designated to receive legal documents on behalf of the company. If you choose to act as your own registered agent, this will be free. However, if you would like to use a registered agent service (such as the one offered by Tailor Brands) the cost can range from $199-$400 annually.
While it does cost more, most business owners choose to work with a registered agent service rather than acting as their own registered agent. With a reliable registered agent service such as the one offered by Tailor Brands, you can ensure that you don’t miss any important documents that are sent to your business.
Creating an operating agreement for your Maine LLC is not a requirement, but it is highly recommended. You can create this document yourself for no charge, or you can hire an attorney to create one for you. If you choose to work with an attorney, the cost to create an operating agreement can range from several hundred to a thousand dollars or more.
Once you’ve formed your Maine LLC, the bulk of the expenses will be out of the way. However, there are still a few more recurring fees and additional expenses that you’ll be required to pay. This includes things like:
Depending on the nature of your business, you may need specific licenses or permits to operate in Maine. As for how much these licenses and permits will cost, it will vary depending on both the type of license/permit that you need as well as the municipality where your business is located. A general business license in Portland, for example, might cost around $100, while certain professional licenses can cost much more.
Maine requires all LLCs to file an annual report. The purpose of this report is to update the state regarding your business’s current information. In Maine, there is an $85 filing fee each time you file an annual report for an LLC.
While there are several different expenses associated with forming and running an LLC in Maine, one bit of good news is that almost all of these expenses are tax-deductible for federal purposes. This includes expenses such as:
These deductions can help offset some of your startup costs when tax season arrives.
Here’s a quick overview of the typical costs associated with forming an LLC in Maine:
| |
Fee/Cost | Amount |
LLC filing fee (AoO) | $175 |
Statement of Information | $85 |
Business License | Varies by municipality/license type |
Registered Agent (optional) | $199-$400 annually |
Reserve Business Name (optional) | $20 |
Filing a DBA (optional) | $125 |
Operating Agreement (optional) | $0-$1,000 |
Annual Report | $80 |
While not as expensive as some might imagine, forming an LLC in Maine does come with a few expenses, but understanding these expenses can help you better budget and prepare for your business’s future.
Of course, keeping up with all the LLC formation steps and associated fees can be a lot, even for the most organized savvy business owners. That’s why we at Tailor Brands offer a comprehensive LLC formation package that includes all required fees and services in one bundle. All you have to do is provide your business’s information, and we will take care of the rest!
Despite the expenses and steps required, forming an LLC offers a range of benefits and protections for business owners in Maine. If you would like to get started creating your new company quickly, easily, and affordably with help from Tailor Brands, be sure to contact us today!
It typically takes 5-10 business days to process your LLC formation paperwork, though expedited services are available for an additional fee.
Yes, Maine requires every LLC to have a registered agent. This person acts on behalf of your company to receive legal documents from the state. You can either appoint one yourself, or you can hire a registered agent service. However, most Maine business owners choose to work with a registered agent service due to the convenience and reliability that it provides.
No, LLCs in Maine are not legally required to have an operating agreement. However, it is still highly recommended. Creating an operating agreement for your LLC will help define the company’s organizational structure and procedures for dealing with various scenarios, and it’s an important tool for preventing disputes among LLC members.
Yes, depending on the type of business you run and where it operates, you may need one or more business licenses or permits. Licensing requirements (as well as their costs) will vary by municipality and industry, so be sure to check local regulations.
Yes, if you aren’t ready to move forward with forming your LLC but would like to ensure that your business name will be available when the time comes, you can reserve your name by submitting an Application for Reservation of Name to the Maine Secretary of State. This will reserve your business name for 120 days, and the fee for submitting this application is $20.
If you want your LLC to operate under a different name, you will need to file a DBA (Doing Business As) with the state. The filing fee for a DBA in Maine is $125.
Yes, Maine lets you form an LLC entirely online through the Secretary of State’s website. Filing online can expedite the formation process, and you’ll be able to pay the required fees electronically.
This portion of our website is for informational purposes only. Tailor Brands is not a law firm, and none of the information on this website constitutes or is intended to convey legal advice. All statements, opinions, recommendations, and conclusions are solely the expression of the author and provided on an as-is basis. Accordingly, Tailor Brands is not responsible for the information and/or its accuracy or completeness. It also does not indicate any affiliation between Tailor Brands and any other brands, services or logos.
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