How to Start a Business in Maine
Everything you need to form your Maine LLC, corporation, or sole proprietorship, with exact fees, timelines, and step-by-step instructions.
Forming an LLC in Maine costs $175. The state has no LLC franchise tax, and LLCs default to pass-through taxation, with members reporting income at graduated rates from 5.8% to 7.15%. You'll need to file an annual report for $85 each June.
This guide walks you through every step, from choosing your business structure to completing licenses and registrations.
Choosing Your Maine Business Structure
This is the first decision and it affects everything: taxes, liability, paperwork. If you are unsure, an LLC is the right default for most Maine small businesses.
| Entity Type | Liability Protection | Taxation | Maine Filing Fee | Annual Cost | Best For |
|---|---|---|---|---|---|
| LLC | Yes | Pass-through | $175 | $85 Annual Report (Form MLLC-13) | Most small businesses |
| Corporation | Yes | Double (C-Corp) or pass-through (S-Corp) | $145 | $85 Annual Report (Form MBCA-13) | Raising investment, stock options |
| Sole Proprietorship | No | Pass-through | $0 | $0 | Freelancers, side hustles |
| Partnership | No | Pass-through | $0 | $0 | 2+ owners (consider an LLC instead) |
8 Steps to Start Your Maine Business
- 1
Choose your business structure
LLC, corporation, or sole proprietorship. Each has different costs, tax treatment, and liability protection.
- 2
Pick and reserve your business name
Search the Maine Secretary of State, Bureau of Corporations, Elections and Commissions (Division of Corporations, UCC and Commissions) database. Reserve for $20 (120 days).
- 3
Appoint a registered agent
Must have a physical Maine street address. Can be yourself (free) or a service ($100 to $300 per year).
- 4
File your formation documents
Certificate of Formation (Form MLLC-6), filed under 31 MRSA 1531 ($175) or Articles of Incorporation (Form MBCA-6), filed under Title 13-C, the Maine Business Corporation Act ($145) with the Maine Secretary of State, Bureau of Corporations, Elections and Commissions (Division of Corporations, UCC and Commissions).
- 5
Get your EIN from the IRS
Free, online, takes about 5 minutes. Do not pay anyone for this.
- 6
Register for a sales tax permit if you sell goods
Through the Maine Revenue Services. State sales tax rate: 5.5%.
- 7
Get required licenses and permits
Maine issues no general statewide business license.
- 8
Register for Maine taxes
Personal income tax: Graduated, 5.8% to 7.15%.
How Much Does It Cost to Start a Business in Maine?
| Item | Cost | Notes |
|---|---|---|
| LLC filing fee (Maine Secretary of State, Bureau of Corporations, Elections and Commissions (Division of Corporations, UCC and Commissions)) Required | $175 | The Secretary of State's LLC page states corporate filings processing time is 40 to 55 business days. |
| Corporation filing fee Required | $145 | If forming a corporation instead |
| Annual Report (Form MLLC-13) Required | $85 | June 1 each year. The first report is due between January 1 and June 1 of the year following formation. |
| Name reservation | $20 | 120 days |
| Registered agent service | $0 to $300/yr | Free if you serve as your own |
| EIN (IRS) Required | $0 | Always free |
| Business license | Varies | Maine issues no general statewide business license. |
| Operating agreement | $0 to $500+ | Free template or attorney-drafted |
| Realistic LLC total (year 1) | $175 to $560 |
Start a Specific Business in Maine
Maine Business Guides
- How to Start an LLC in Maine
- How to Start a Corporation in Maine
- Sole Proprietorship in Maine: How to Start One
- Maine Business License: What You Need and How to Get It
- Maine Home-Based Business Laws: Zoning, Permits and Rules
- How to Get an EIN in Maine
- Maine Business Name Search: How to Check and Reserve a Name
- How to Get a Resale Certificate in Maine
- Maine Registered Agent: Requirements and How to Choose One
- Best LLC Services in Maine
- Maine Business Taxes Explained for New Owners
- How Much Does It Cost to Start a Business in Maine
Why Start a Business in Maine?
- A Maine LLC costs $175 to form (Certificate of Formation, Form MLLC-6), and a business corporation costs $145 (Articles of Incorporation, Form MBCA-6).
- The only recurring state filing charge is an $85 annual report for domestic LLCs and corporations, due June 1 each year; there is no LLC franchise tax.
- Maine's general sales tax rate is 5.5%, one of the lower statewide rates in the country.
- There is no general statewide business license: general operating licenses are handled by each town or city.
- Corporate income tax is graduated from 3.5% on the first $350,000 of income up to 8.93% above $3,500,000, and individual rates run 5.8% to 7.15%.
- The state has about 1,405,012 residents (July 2024 Census estimate) and roughly $102.8 billion in 2025 GDP, ranking 43rd among the 50 states.
Maine Business Resources
Frequently Asked Questions
- How long does it take to form an LLC in Maine?
- The Secretary of State processes LLC formation documents in 40 to 55 business days. Expedited handling is available for $50 (24-hour service) or $100 (immediate service), though availability depends on staffing.
- What does it cost to start an LLC in Maine in year one?
- The Certificate of Formation costs $175 to file. Your first annual report ($85) is due between January 1 and June 1 of the year following formation.
- Can a non-resident form an LLC in Maine?
- Yes. You can file your Certificate of Formation by mail without appearing in person, making it possible for non-residents to form an LLC. Mail your completed PDF form and $175 filing fee to the Secretary of State.
- What is the cheapest way to start a business in Maine?
- Incorporating costs $145, which is $30 less than forming an LLC at $175. Both structures require the same $85 annual report fee due each June.
- Is an operating agreement required in Maine?
- An operating agreement is not listed among Maine's state filing requirements for LLCs. To form your LLC, you only need to file the Certificate of Formation (Form MLLC-6) with the Secretary of State.