Maine ranked 19th on the Cost-of-Doing-Business Index. (Milken Foundation, 2005
Maine has the 5th Fairest State Tax System in the nation. (Corporation for Enterprise Development.)
Maine was one of 10 states to receive an ?A? in the Corporation for Enterprise Development’s 2005 Assets and Opportunity Scorecard.
Cost of Living Index
There is no government data available on the cost of living in Maine.
Crime Rate
Maine has the 5th lowest crime ranking in the U.S. (F.B.I., 2004)
Fees & Taxes
Business Inventory Tax Business inventory is exempt.
Corporate Income Tax
First
$25.000
3.5 %
Next
$50.000
7.93 %
Next
$5.000
3.0 %
Next
$175.000
8.33 %
Over
$250.000
8.93 %
Alternative minimum tax imposed equal to the amount by which the state minimum tax (27% of adjusted federal tentative minimum tax) exceeds Maine income tax liability, other than withholding tax liability.
Personal Income Tax Maine’s personal income tax system consists of four brackets with top rate of 8.5% starting at an income level of $16,699.
Personal Property Tax All real and tangible personal property located in the state of Maine is taxable unless specifically exempted by statute. Maine does not levy an intangible personal property tax.
Property taxes vary and are assessed locally, but a statewide program enables businesses to recoup taxes paid on new personal property. Qualified property placed in service after April 1, 1995, is eligible for a full State reimbursement for a maximum of 12 years. Eligible property includes any machinery and equipment used exclusively for business purposes, except office furniture and lighting fixtures.
State Sales and Use Tax Base Rate: 5.0%
Machinery Rate: None
An exemption on the sales of machinery and equipment used by the purchaser directly in producing tangible personal property to be sold or leased for final use.
Unemployment Insurance Maine’s new employers’ rate is 1.73% for 1 year.
Maine, a business friendly state has witnessed an increase in its GDP from $46.62 billion in 2000 to $52 billion in 2006 and in 2017; it increased to $52.8 billion. Some of the industries that have shown steady growth in this billion dollar economy include manufacturing, management of companies and enterprises, arts, entertainment & recreation, healthcare and social assistance, and accommodation and food services. The growing business economy is responsible for the rise in the number of startup companies in Maine.
Advantages of setting up an LLC or Corporation
There are several advantages or benefits that business can enjoy when they register a new company in Maine. One of the primary benefits is that the labor costs are 6% less than the national per capita rate, which transforms into savings. If you were to set up an LLC or a corporation in Maine, then the specific advantages of these two types of entities are:
Advantage#1: Salient benefits of Corporation or LLC formation
Corporation
Independent Life: If you register a new business in Maine as an S Corporation then it will enjoy an independent life. The business entity will continue operations undisturbed even if it faces the death of one of its stockholders.
Raise additional Funds: If you register a new company in Maine as a C Corporation then the business entity will be able to raise additional funds through the sale of stock.
Change in Ownership: If you have formed an S Corporation in Maine then sale, and purchase of stock will be able to facilitate changes in ownership.
LLC
Limited Liability: The owner of an LLC startup company in Maine will be able to enjoy limited liability protection, which means creditors can sue the LLC but not the owner or investors.
No Privilege Tax: One of the benefits for LLC’s in the state of Maine is that there is no franchise or privilege tax applicable to businesses. As a result, the business entity will not be subject to any state tax on the net worth or income.
No Minutes of meetings: Unlike a corporation, an LLC startup company in Maine will not be required to maintain any minutes of the meetings or resolutions.
Advantage#2: Business Incentives
Apart from the specific advantages of corporation and LLC, if you register a new business in Maine, there are several benefits that your business can leverage from. These benefits are considered as business incentives and are provided by state and federal agencies. Some of the most popular incentive programs include:
Pine Tree Development Zones (PTZ): This is one of the most popular business incentive programs. In order to enjoy the benefits, you have to register a new company in Maine especially in the development zones and in eligible sectors, which are:
– Financial Services
– Aquaculture and Marine Technology
– Biotechnology
– Composite Materials Technology
– Advanced Technologies for Forestry and Agriculture
– Environmental Technology
– Information Technology
– Manufacturing and Precision Manufacturing
As a part of this program, the business entity will be able to enjoy corporate tax credits as well as sales and use tax exemptions on real and personal property.
Finance Authority Of Maine: This is a quasi-governmental agency that provides a wide variety of financing options to startup companies in Maine. The financing options include:
– Maine Rural Development Authority: This provides financial assistance to business entities with maximum funding of $500,000.
– New Markets Capital Investment Credit: As a part of this option, an investor including a business entity that makes a qualified equity investment especially in a business that is considered to be a part of a low-income community, can get investment credit that is equal to almost 39% of the investment.
If you register a new business in Maine, there are several other incentive programs that you can benefit from including Technology Tax Credits, Community Development Block Grant Program, Maine Manufacturing Extension Partnership (MEP), Employment Tax Increment Financing (ETIF), Business Equipment Tax Exemption (BETE), and Business Equipment Tax Reimbursement (BETR) among others.
Are there any Disadvantages of Incorporating in Maine?
Are you wondering if there are any disadvantages if you register a new company in Maine? The disadvantages are very few and almost inconsequential. For example, the time taken for registration of a corporation is longer as compared to a partnership or the fee for foreign LLC’s and corporations is higher than that of domestic business entities. The truth is that the advantages of doing business in this state are much more and will enable your business achieve its intended growth.
How do you make your business operational in Maine? Registering your business is one way but that is only half of the work done. You will have to apply for a business license or permit depending on the type of business you have. Once you have the required permit or license, you can operate your business from anywhere in the state.
Maine Business License Requirements
How do you obtain a business license in Maine? Does your business require a license or a permit? Who is the issuing authority for these licenses or permits? These are some of the important questions that you might be confronted with and hence, we have created a guide that will help answer some of these questions.
Let us look at a step-by-step approach towards acquiring a Maine company license or a permit.
Step-1: Identify the Industry or Type of Business
Which industry is your business entity a part of? It is important to know that the state of Maine does not provide licenses to all types of businesses. Some of the businesses may require local permits or business license in Maine issued by city or county authorities. The nature of permit or license issued by the state depends on the type of industry. Some of the industries or type of businesses wherein a license is issued by the state include:
Gaming Industry
Liquor
Agriculture Industry
Food Establishment
You are probably asking: What type of Maine company license or permit is issued by county or city authorities? This depends on the city or county where your business has been registered or is established or plans to operate from. Let’s look at the following examples to understand this well:
PORTLAND, MAINE
If you are planning to set up your business in Portland then the business license and permits are issued for the following industry or type of business:
Circus License
Massage Establishment
Mobile Food Service
Temporary Food Service
Transient Sellers Permit
Outdoor Dining Public or Private Property
There are several other businesses that will require a Maine company license or permit issued from the county or city office.
BATH, MAINE
If you are planning to set up your business in Bath then the business license and permits are issued for the following industry or type of business:
Gasoline
Pin Ball & Gaming Machines
Disposal – Commercial
Transient Sellers of Consumer Goods
Victualer – Mobile Food Service
Victualer – Restaurant
There are several other businesses that will require a Maine company license or permit issued from the county or city office.
Step-2: Apply for a Business License
Now that you know the type of business or the industry, it is time to understand the application procedure. The processing and the fee for a Maine company license vary according to the industry or type of business and where the business is situated. Here is an example that will help you understand how the process works:
PORTLAND, MAINE
If you are planning to set up a Mobile Food Service in Portland then here is the information regarding the business license:
The Application Fee: $45
Health Inspection Fee: $150.00
Food Truck License Fee: $546
If you are planning to operate in the “Night” (10 p.m. to 6 a.m.) then there is an extra fee of $218
Business License is issued by: Permitting and Inspections Department
License Expiry and Renewal: Expires annually on March 31
MAINE STATE LICENSE
If you are planning to set up a Retail Food Establishment in the state then here is the information regarding business license in Maine:
Establishment with 0 to 10 employees: $20
Establishment with 11 to 25 employees: $50
Establishment with 26 or more employees: $150
Business License is issued by: Maine Department of Agriculture, Conservation & Forestry
Division of Quality Assurance and Regulations
License Expiry and Renewal: The license issued is for a one year period and expires annually
In order to procure the correct business license in the state of Maine, it is extremely important to approach the right licensing authority.
If you require any information regarding registration of your business in Maine, please feel free to call us on 702-871-8678.
Maine LLC and Corporation Registration and Formation
Maine is famous for its picturesque waterways and seafood cuisine and is probably the reason why lobstering and ground-fishing industries are on the rise. This is not all; tourism as well as outdoor recreation also play an integral role in improving the economy of the state. Some of the top companies operating in Maine include MaineHealth, Unum, L.L.Bean, Hannaford Supermarkets, CMMF, IDEXX, Pike Industries, and Bath Iron Works among others. So, if you were to form a corporation in Maine, how best could you go about incorporating your business?
We are there to help you incorporate your business entity in Maine. We are one of the top registered agents and are familiar with all incorporation processes pertaining to the Maine State and can provide information and assistance for a successful set up of your business!
Maine LLC Registration and Formation
LLC company formation in Maine is governed by Title 31, Chapter 21 of the Maine Limited Liability Company Act. The procedure for registration and formation of LLC is as follows:
Step#1: Maintain a registered agent
One of the essential steps towards LLC company formation in Maine is hiring and continuously maintaining a registered agent. Each business entity in the state is required to maintain a registered agent pursuant to MRS Title 31 §1661. We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Maine.
We are in compliance with all regulations in the State of Maine.
Step#2: Name Reservation/Registration
A business name is integral to the existence of any business entity and without a proper name an LLC or any other business entity will not be registered in the state. A domestic entity can reserve their name for a period of 120 days pursuant to MRS Title 31 §1509. The name reservation application has to be submitted to the Secretary of State. The naming requirements for company formation in Maine highlights the fact that the chosen business name should be distinguishable from the name of any other entity on the records of the secretary of state.
Step#3: Certificate of Formation and Statement of Foreign Qualification
Registration documents for LLC company formation in Maine are separate for domestic and foreign business entities and so are the fees. If you are planning to form a domestic LLC then you will have to file “Certificate of Formation” pursuant to MRS Title 31 §1531. If you are planning to form a foreign LLC in the state then you will be required to file a “Statement of Foreign Qualification” pursuant to MRS Title 31 §1622. The registration documents have to be submitted to the secretary of the state.
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.
In case, you have any questions regarding how to form a Maine business, feel free to call us on 702-871-8678.
Maine Corporation Registration and Formation
How do you form a corporation in Maine? The incorporation of domestic and foreign business entities is governed by Title 13-C of the Maine Business Corporation Act.. The process of incorporation is as follows:
Step#1: Maintain a Registered Agent
One of the important steps towards company formation in Maine is hiring and maintaining a registered agent in the state. Each business entity in the state is required to maintain a registered agent pursuant to 13-C MRSA §1507.
We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in Maine. We are in compliance with all regulations in the State of Maine and will assist you to form a corporation in Maine.
Step#2: Name Reservation/Registration
A business name is crucial to the existence of any business entity and without a name; a business corporation will not get registered in the state. A domestic entity can reserve their name for a period of 120 days pursuant to 13-C MRSA §402. A foreign Maine Corporation can register their name with the Secretary of State pursuant to 13-C MRSA §1506. The naming requirements highlights the fact that the chosen business name should be distinguishable from the name of any other entity on the records of the secretary of state.
Step#3: Articles of Incorporation and Application for Authority
If you are planning to form a Maine business entity then preparing and filing the right business formation documents is important. The documents are different for domestic and foreign entities.
If you are planning to form a domestic Maine Corporation then you will have to file “Articles of Incorporation” pursuant to 13-C MRSA §202. If you are planning to incorporate a foreign business entity in Maine then you will be required to file an “Application for Authority” pursuant to 13-C MRSA §1503. The registration documents have to be submitted to the secretary of the state.
We can help in streamlining the process of company formation in Maine by filing documents on your behalf through the online process or through an expedited process.
If you have any questions regarding Maine incorporation or LLC formation, you can simply visit the Maine Business formation page.
The economy of Maine is supported by both agriculture and industries. The agricultural economy is being driven by eggs, poultry, cattle, dairy products, apples, wild blueberries, maple sugar, and maple syrup. Industries in Maine focus primarily on lumber and wood products, paper, leather products, electronic equipment, textiles, food products, and bio-technology. If you want to set up a company in Maine then it does not have to necessarily be an industry, it can be services as well.
Why Choose Maine for Incorporation?
Maine has witnessed a growth in small and medium sized enterprises with almost 2,087 companies involved in exporting goods and generating $2.3 billion. The top industries in terms of small business employment include Health Care and Social Assistance, Retail Trade, Manufacturing, and Other Services (except Public Administration).
Now let’s take a look at some of the salient benefits that are responsible for fueling growth of small businesses:
Maine Opportunity Zones: This is a program aimed at small and medium sized enterprises. If you set up a company in Maine opportunity zone then your business would be eligible for a variety of abatements, credits, and deductions. There are 32 such zones Map of Opportunity Zones.
Business Equipment Tax Exemption (“BETE”) Program: The BETE program has been implemented to provide 100% property tax exemptions to qualified businesses.
Pine Tree Development Zone Program (PTZ): The PTZ Program offers eligible businesses an opportunity to almost eliminate state taxes for a period of ten years. In order to enjoy the benefits of the PTZ program, you will have to set up a company in Maine and in eligible sectors like Biotechnology, Financial Services, Information Technology etc.
How do you incorporate in Maine?
Is there a specific process for company incorporation in Maine? What documents do you require and who processes these documents? These are some of the questions that you will be confronted with and hence the following steps will provide you with information on how incorporation works in Maine:
Type of Business
What type of businesses can you form in Maine? The type of domestic or foreign business entities that can be incorporated or formed in the state include General Partnership, Corporation, S-Corporation, Limited Liability Company, Limited Partnership, Limited Liability Partnership, and Nonprofit Corporation. The first step towards company incorporation in Maine is to identify the type of business you want to set up.
Business Entity Name
What is the next step towards incorporation in Maine? The next step is to identify and reserve a name and this can be done as follows:
Naming Requirements: The naming requirements for LLC should be pursuant to MRS Title 31 §1508 while that of a business corporation should be pursuant to 13-C MRSA §401. The name of each limited liability company must contain words like “Limited Liability Company” or abbreviations like “L.L.C.” or “LLC”. A corporate name must contain words like “corporation”, or “incorporated” or abbreviations like “corp.” or “inc.”
Business name search: You need to search for a business name that is not in use currently. You can conduct a name search here.
Name Reservation: Once you have identified business entity name, you can reserve the name with the Secretary of State for a period of 120 days. The forms are different for LLC (MLLC-1) and Corporation (MBCA-1).
Name Registration: If you are foreign entity planning to set up company in Maine then you will be required to register business name with the Secretary of State. The forms are different for LLC (MLLC-2) and Corporation (MBCA-2).
Choose a Registered Agent
In the state of Maine, every business entity states whether a Business or Professional Corporation or a Limited Liability Company is required to maintain a registered agent governed by MRS Title 31 §1661. We are one of the respected registered agents in Maine and will be responsible for initiating company incorporation in Maine through processing of all your documents including “Articles of Incorporation” for domestic corporations and “Application for Authority” for foreign corporations.
Articles of Incorporation and Application for Authority
The process of incorporation and the fee varies according to the type of business entity you want to form.
If you are planning to form a domestic corporation (For profit), then you will have to file “Articles of incorporation” pursuant to 13-C MRSA §202.
If you are planning a foreign business incorporation in Maine then you will be required to file an “Application for Authority” pursuant to 13-C MRSA §1503.
In order to streamline the process we can file documents on your behalf through the online process or through an expedited process.
Date Stamped Copies
As a part of the process of company incorporation in Maine, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with Maine Incorporation
What would it cost to set up company in Maine? Check Fees here!
Including Washington DC State Initial Filing fee $99.00 and $89.00 fee for checking name availability, preparing Washington DC state-approved Articles of incorporation, filing Articles with state, sending Articles to you.
See what’s included
$99.00 – Washington DC State Initial Filing fee, articles of incorporation for a corporation with authorized capital up to one hundred thousand dollars ($100,000)
$89.00 – Checking name availability, preparing state-approved Articles of Incorporation, filing Articles with state, mailing them to you.
Yearly Requirements and Fees for Washington DC companies – Initial Repots on Corporation and LLC are filed at different times. Then reports are due ever two years. For Corporations, if you file your articles before April 15, the report is due the same year. If you file your articles after April 15, you file your reports the next year. For LLCs the reports are due any time in the first year that you file your articles. Then they are due every two years after that. The cost for a Corporation and LLC is $300.00 and we only charge $15 to file for you..
702-871-8678
