General Guide to Company Incorporation in Maine
Updated on Wednesday 28th August 2019
Rate this article 1 reviewsbased on
Maine is a northeastern state of USA, bordered by New Hampshire and the Atlantic Ocean. The Pine Tree State, as Maine is recognized, is the 9th most populated state of America and is well-known for its excellent seafood gastronomy and the attractive water channels, leading to varied types of businesses in this particular field. We have prepared a general guide to company incorporation in Maine for entrepreneurs willing to expand their activities in the USA. From the beginning, we mention that our USA company formation specialists are at your disposal with comprehensive information about how you can set up your business in any state, including Maine.
How do I open a limited liability company in Maine?
Starting a company in USA and especially in Maine is subject to easy incorporation with the Business Division of Maine Secretary of State. Besides the simple forms you need to consider at registration, the Articles of Association are the main documents which contain all the details about your firm: its name, the owners, the business address, the board of directors, the registered agent and the list of activities. Low Profit or Professional LLC are accepted in Maine and the owners can perform the activities starting with the registration date or a few days after. Please consider the related fees for LLCs in Maine.
Entrepreneurs can also set up corporations in Maine and they need to offer information about the services provided, the authorized shares, the voting rights and notify if the operations will be controlled by the shareholders or by the board of managers.
A registered agent for your business in Maine
Companies in Maine can be formed if a registered agent is appointed before the registration procedure. In this matter, it is good to know that a registered agent can be whether an individual or another company with establishments in Maine. Either way, the registered agent will represent your business and the related documents. Opening a company in USA may also be subject to an operating agreement which comprises details about the owners, the activities, their rights and liabilities among other aspects.
Obtain the EIN in Maine
Just like for most states in USA, the Employer Identification Number or simply the EIN will be necessary when incorporating a company in Maine. This is the necessary number for tax purposes and it is issued by the IRS (Internal Revenue Service) and particularly by MRS (Maine Revenue Service) through the local offices. Please consider that most banks in Maine will require the EIN for opening a corporate bank account.
Licenses and permits in Maine
Depending on the type of business and the chosen sector in Maine, you might need licenses and permits from the health and safety department, building and construction division or from the environment department in Maine. As for the general licenses, these are issued by the local authorities. We remind foreigners that they can solicit support and guidelines from our company formation agents in USA in matters of registration, including for licenses and permits application.
Other types of entities in Maine
Sole proprietorships, corporations or partnerships can be set up by foreign investors in Maine. In cases of partnerships in this state, the members involved must pay the state taxes on partnership profits on personal tax returns. LLCs in Maine need to file the annual report with the tax authorities in charge. In any case, we remind that when forming such entities, our USA representatives can act as registered agents for your business in Maine.
Taxes in Maine
The general sales tax in Maine is set at 5.5%. Other taxes involve the short-term auto rentals for which a tax of 10% is levied. Moreover, one should consider the income tax that ranges between 6.5% and 7.95%. Local tax collectors are in charge of property tax and related aspects. The capital gains tax in Maine is set at 7.15% rate and should be in the attention of entrepreneurs generating this kind of income. As for natural persons living and working in Maine, the taxable income starts from $21,100 for which a tax of 5.8% is imposed. Incomes ranging between $21,100 and $50,000 are levied at a tax rate of 6.75%. A higher tax rate is applicable to incomes of more than $50,000 and it is set at 7.15%. Having a business in Maine also means considering the importance and the support of an accounting firm in Maine, so feel free talk to our advisors and find out more details about how we can provide assistance and help in such matters.
Do I need insurance for my company in Maine?
Yes, no matter how small or big your company is, it is essential to have in mind signing an insurance policy for your business. The general liability insurance is often the proper choice of entrepreneurs in Maine, as such insurance suits most the business needs. The following information explains the policies and the importance of a general liability insurance for companies in Maine:
- Property damage refers to the company’s or the customer’s property;
- Medical payments are covered by the policy insurance if damages take place to the premises of the business;
- The legal defence and judgment are covered by a general liability insurance in Maine;
- Copyright infringement, wrongful eviction, advertising liabilities injury, false arrest or invasion of properties enter the protection of such insurance.
It is important to know that a general liability insurance cannot cover the warranties offered by your company, the intentional acts or the risks involving storm damages. A commercial property insurance, for example, can be considered if you need protection for buildings, machinery and tools as part of your company, for weather disasters.
As for the workers’ compensations, such insurance is needed to cover the expenses for medical issues that result from work-related injuries. Such an insurance policy protects the business against a lawsuit and provides financial support for employees who suffered different injuries at work. We recommend you talk to one of our company formation agents in the USA and find out more about how to get insurance for your business in Maine.
Defining the brand: How do I develop my company in Maine?
Having a company in Maine means already having an idea about the potential clients and the goals of the company, nevertheless, it is suggested to pay attention to the methods through which your company can grow. A web presence, for instance, is one of the important business tools a company can have. A website and several social media channels should be in the attention of any entrepreneur looking for doing business in Maine and that because the market is diverse and you can discover specific niches that can be an opportunitiy for your business if properly presented on the internet. Also, one should consider having a Google My Business profile and allow potential clients to reach his/her business fast. Such internet tools are at the disposal of entrepreneurs, whether for free or a specific sum of money and such expenses can be considered at the time the business is planned.
Many entrepreneurs who do not have a clue about how to place the business online can talk to specialists in the field and ask for support. There are many dedicated firms that can provide different services for businesses at the beginning of the road, so make sure you plan your business in such a way that you can benefit from entire support for creating and defining your brand in Maine.
A business in the real estate sector in Maine
The real estate sector in Maine can be quite appealing to foreign investors in USA and that because entrepreneurs can think of rental businesses and single-family homes, for example. Being an important tourism destination, one can explore this field from a business point of view and become a real estate investor in no time. Here is information about the businesses and the investments in Maine that can be useful when making a decision for starting a company in USA:
- approximately 37 million tourists visited Maine in 2017;
- around $2.8 billion represent the exports registered in Maine in 2018;
- approximately $57 billion is the GDP registered for 2018 in Maine;
- the environmental technology, forestry, food & beverage, marine construction, tourism and renewable energy are the main economic sectors in Maine.
Economy in Maine
Due to its welcoming climate, Maine developed the agriculture sector in a fast manner. The ocean exits offer numerous possibilities in the fishing industry and also for tourism and recreation facilities. The Pine Tree State is known for its large production of blueberry in USA. Augusta, the capital of Maine, and cities like Portland, Camden, South Portland, Lewiston, Bangor or Cape Elizabeth are representative business destinations in this state. Likewise, Maine is very much appreciated for the infrastructure and transportation provided which allows a wide range of connections with important business destinations, among which we mention Canada.
For a better understanding of how you can register your company in Maine, we suggest you contact our team of company formation advisors in USA.