Source: Pexels
TLDR
- The largest of the six New England states, Maine is known for lobster, blueberries, and its rocky Atlantic coastline. In addition to beautiful scenery and fantastic seafood, Maine is home to almost 150,000 small businesses, employing over 57 percent of all Maine employees and making up 99.2 percent of all of the state’s companies.
- Before registering your Maine startup, it’s a good idea to research the market and potential competitors and create a business plan and a roadmap for moving forward. The State of Maine provides various resources to help you when starting a business.
- When you’re ready to register your startup, like other states, Maine requires you to choose a unique business name, meaning no other Maine registered businesses have a name similar to your chosen one.
- If you’re not quite ready to register your startup, but you have a business name in mind, you can reserve your business name with the State of Maine for 120 days.
- Before you register your Maine startup, in addition to creating a business plan and choosing your business name, you must also determine your startup’s legal entity structure. For example, in Maine, you may choose to register as a(n): Corporation, Limited Liability Company (LLC), Limited Partnership (LP), and Limited Liability Partnership (LLP).
- Next, you need to identify and obtain a registered agent designated to receive court and other vital documents on your behalf. In Maine, like in other states, a registered agent is “a person or entity appointed to accept service of process and official mail on your business’ behalf.”
- Finally, after completing the above steps, it's time to submit your formation forms to Maine’s Secretary of State. For new entities, the State of Maine provides sample forms for your use or review. For example, suppose you choose a limited liability company structure for your Maine startup. In that case, you can use the state's official forms to complete your certificate of formation with Maine’s Secretary of State to create your startup. You can only file through US Mail. The filing fee is $175.
- After submitting your registration forms, you need to learn about any required state or local licenses, such as a business license.
- Understanding the difference between domestic and foreign startups is critical to know when to conduct business in Maine. For example, if your startup is registered in the State of Maine, then you have a domestic company. However, if you’re registered in another state, then you have a foreign entity.
- As a foreign startup, before you conduct business in Maine, you must register with the State of Maine. This applies to business corporations, non-profits corporations, limited partnerships, limited liability companies, and limited liability partnerships.
The largest of the six New England states, Maine is known for lobster, blueberries, and its rocky Atlantic coastline. In addition to beautiful scenery and fantastic seafood, Maine is home to almost 150,000 small businesses, employing over 57 percent of all Maine employees and making up 99.2 percent of all of the state’s companies.
With L.L. Bean, Olympia Sports, and Jackson Laboratory serving as three of the largest companies in the state, Maine also has ports playing a significant role in the U.S.’s national transportation. And we would be remiss if we didn’t mention the naval shipbuilding industry, including the Portsmouth Naval Shipyard and Bath Iron Works.
If you consider registering your startup in Maine, this article will walk through what you need to know.
How to Register a Business Name in Maine
When you’re ready to register your startup, like other states, Maine requires you to choose a unique business name, meaning no other Maine registered businesses have a name similar to your chosen one. To confirm if your startup’s name is distinguishable from any other registered Maine businesses, you can use the corporate name search database.
If you’re not quite ready to register your startup, but you have a business name in mind, you can reserve your business name with the State of Maine for 120 days. Unfortunately, in Maine, you cannot reserve a business name online. However, you can complete the Application for Reservation of Name and mail it to Maine’s Secretary of State office. Once the 120 days expires, you cannot renew the name reservation.
Often, when you have a sole proprietorship or a general partnership, you’d like to have a business name instead of using your personal name. In Maine, however, there is no provision for filing a “trade name” (often referred to as a “doing business as” or DBA) for a sole proprietorship or general partnership. If you’d like to select a trade name, you’ll need to file the name with the municipal court clerk where your business is located.
How to Register a Business in Maine
When you register your Maine startup, you'll need to satisfy several requirements to register your business successfully and compliantly. Before registering your startup, it’s a good idea to research the market and potential competitors and create a business plan and a roadmap for moving forward. The State of Maine provides various resources to help you when starting a business.
In drafting your business plan, you’ll want to consider marketing, advertising, sales, location, and ownership, to name a few categories. To help guide you, you can check in with the U.S. Small Business Administration, providing additional guidance for determining the feasibility of starting your business as well as how to create a business plan.
Once you’ve identified some of your business’s operation basics, it is then time to register your start-up. Below, we'll address how to register your business step by step.
Determine Your Business’s Entity Structure
Before you register your Maine startup, in addition to creating a business plan and choosing your business name, you must also determine your startup’s legal entity structure. For example, in Maine, you may choose to register as a(n):
- Corporation
- Limited Liability Company (LLC)
- Limited Partnership (LP)
- Limited Liability Partnership (LLP)
You may also organize as a sole proprietorship or a general partnership in Maine; however, you do not need to register these business entities with the state.
Your chosen business entity determines the next steps in registering your Maine startup. To learn more about the state’s permissible entity types, you can visit Maine’s Secretary of State’s webpage.
Identify Your Registered Agent
Next, you need to identify and obtain a registered agent designated to receive court and other vital documents on your behalf. In Maine, like in other states, a registered agent is “a person or entity appointed to accept service of process and official mail on your business’ behalf.”
In Maine, a registered agent must have a street address (where they can be served legal papers) and not simply a PO Box. Further, they must be over the age of 18. Maine founders can also search for registered agents who have filed a listing statement with Maine’s Secretary of State’s Office.
Submit Your Formation Forms
Finally, after completing the above steps, it's time to submit your formation forms to Maine’s Secretary of State. For new entities, the State of Maine provides sample forms for your use or review.
For example, suppose you choose a limited liability company structure for your Maine startup. In that case, you can use the state's official forms to complete your certificate of formation with Maine’s Secretary of State to create your startup. However, you can only file through US Mail. The filing fee is $175.
After submitting your registration forms, you need to learn about any required state or local licenses, such as a business license.
How Much Does It Cost to Register a Business in Maine?
Depending upon your chosen entity for your Maine startup, you will have filing fees due when registering your business. For example, if you register as an LLC, you’ll pay a fee of $175. If you file as a domestic corporation, you’ll pay a fee of $145. If you want to do business in Maine, but your startup was registered in another state, you may have different filing fees to pay.
Also, depending upon your entity, you may be liable for business taxes. To determine if you owe Maine taxes and how much you may owe, it’s best to engage an accountant familiar with Maine tax laws to advise you.
What if I Want to Do Business in Maine but I Registered My Startup in Another State?
Understanding the difference between domestic and foreign startups is critical to know when to conduct business in Maine. If your startup is registered in the State of Maine, then you have a domestic company. However, if you’re registered in another state, then you have a foreign entity.
As a foreign startup, before you conduct business in Maine, you must register with the State of Maine. This applies to business corporations, non-profits corporations, limited partnerships, limited liability companies, and limited liability partnerships.
If you cannot determine whether you should register your foreign startup, you should contact an attorney familiar with Maine laws, helping you decide on your next steps.
The Benefits of Registering a Business in Maine
Here are some benefits of registering your startup in Maine:
- Maine has capital readily available to entrepreneurs, primarily through local and community banks, numerous grant opportunities, and a robust network of investors. In addition, entrepreneurs can explore funding through the Maine Technology Institute and Maine Angels.
- Maine actively supports small and local businesses, as Mainers commit to doing business locally while knowing that business owner. Buy-local is embedded in Maine’s culture.
- Maine’s economy is locally-driven, and its business owners are collaborative, even if competitors.
- Because Maine has a small population, Mainers have easy access to state officials.
- Further, complying with local and state regulations, such as obtaining licenses, is relatively straightforward.
- The lack of larger companies in Maine allows small businesses to excel.
The Limitations Associated with Registering a Business in Maine
Here are some limitations of registering your startup in Maine:
- Maine’s economy is highly seasonal, with very low economic growth overall. As no surprise, Maine’s busiest season is summer.
- Again, related to Maine’s size, the state has a limited labor force.
- Maine also has very scattered populated areas, with so much of the state being remote.
- Geographically, Maine is located in a remote area of the nation.
- In some regions of the state, access to the internet and cellphone service is spotty.
We can help!
At AbstractOps, we help early-stage founders streamline and automate regulatory and legal ops, HR, and finance so you can focus on what matters most—your business. If you're looking for help registering your Maine startup, we can get your documentation ready, overall shepherding this process to ensure it's done right. Get in touch to learn more!
Like our content?
Subscribe to our blog to stay updated on new posts. Our blog covers advice, inspiration, and practical guides for early-stage founders to navigate their startup journeys.
Note: Our content is for general information purposes only. AbstractOps does not provide legal, accounting, or certified expert advice. Consult a lawyer, CPA, or other professional for such services.