Maine is home to a little over 140,000 small businesses. Out of these small businesses, quite a few are LLCs.
If you’re interested in learning how to start an LLC in Maine, it helps to know whether or not you’ll need a Maine LLC operating agreement. This document is key to helping you start a successful business that’s legally protected.
Read on to learn everything you need to know about forming an LLC in Maine.
Is an LLC Operating Agreement Required in Maine?
An LLC operating agreement is required in Maine. Even though it is required, you do not have to file it with any state organization.
Maine Operating Agreement Laws
Before we jump into the ins and outs of how to get an LLC in Maine, it’s important to talk about the laws you need to follow regarding operating agreements in Maine. You can read through all the laws in § 31-1521 but we’ve outlined a few of the notable ones below.
If the LLC is a low-profit business it has to include that it is a low-profit limited liability company in the operating agreement. This means listing itself as L3C.
A few other things you’ll have to include in an operating agreement in Maine include:
- All names and duties of the members
- The name of the LLC
- Profit distribution procedures
- Buy out and sell-out procedures
- The dissolution process
How Much Does it Cost to Form an LLC in Maine?
If you’re going to get started in learning how to create an LLC in Maine you should know that you’ll need to pay a $250 filing fee with the Secretary of State. In addition, you can reserve your business name for $20.
How to Form an LLC in Maine?
Now that we’ve got some of the basics out of the way it’s time to talk about how to start an LLC in Maine and go through the steps. By following these steps on how to register an LLC in Maine you’ll be able to get your business up and running in no time.
Step 1 – Choose a Name
The first step in learning how to apply for LLC in Maine is to choose a name. Maine law states that LLCs have to include one of the following in their names:
- limited liability company
- limited company
In addition, you have to make sure that your LLC’s name is distinguishable from other businesses. If you have a great name idea and don’t want it to get taken, you can pay the $20 fee to reserve the name.
In Maine, LLCs can also operate under a trade name, also known as a DBA. To do so, you’ll have to file a Statement of Intention to Transact Business Under an Assumed or Fictitious Name and pay a $125 fee.
Step 2 – Appoint a Registered Agent
After you’ve selected a business name it’s time to appoint a registered agent. Maine LLCs need to have a registered agent to tackle the service of process.
A registered agent can either be a business entity authorized to do business in Maine or a Maine resident. Either way, the registered agent has to have a physical Maine street address.
Step 3 – File a Certificate of Formation
After you choose your registered agent you’ll need to file a certificate of formation. This is one of the most important parts of the process.
To do so, you’ll need to fill out the certificate with some key pieces of information:
- The name of the LLC
- The date that the certificate will go into effect
- Whether the LLC is a low-profit LLC or not
- Whether the LLC is a professional LLC
- The name and address of the registered agent
- The signature of an authorized person
Once your document is filled out, you’ll send this to the Maine Secretary of State. You’ll have to include your $175 filing fee.
Step 4 – Prepare an Operating Agreement
Next, it’s time to prepare your operating agreement. Remember, not only is it a good idea to create an operating agreement but it’s also a legality in Maine. Your operating agreement will document how you’ll run your LLC.
You should outline in your LLC that your business is a separate entity. And, you should lay out the rights and responsibilities of the managers and members of your company.
Once you have your operating agreement, file it away with a copy of your articles of incorporation and other key business documents. You don’t need to submit the agreement, but you may need to present it to the government of Maine upon request.
Step 5 – Obtain an EIN
The last step to getting an LLC in Maine is to get an EIN number. Keep in mind that you’ll need this to hire employees, open a bank account, take out a business credit card, or get a business loan.
You won’t need to get an EIN if you’re running a single-member LLC. That’s because you can use your social security number in its stead.
Just remember that you’ll need to get the EIN on the IRS website. This is a completely free process and you’ll receive your EIN in a few minutes.
Maine LLC Operating Agreement Template
Now that you know how to get an LLC in Maine, it’s time to look at a Maine operating agreement template:
LLC Operating Agreeement