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Why Start an ME Corporation?

The state offers a range of tax incentives and credits, giving businesses in Maine a competitive edge. Your corporation may be able to take advantage of these incentives, provided it meets qualifying criteria.

For example, the Major Business Headquarters Expansion Program was initiated to encourage the location and expansion of major business headquarters, in the State of Maine, and to promote the recruitment and training of employees for these facilities. A certified applicant is allowed a credit against the tax due for the taxable year in an amount equal to 2 percent of the certified applicant's qualified investment.

For many entrepreneurs looking to start a larger business, an ME incorporation may be the best choice. As a corporation, your business is able to buy and trade stock, and when it comes to excess profits, corporations offer more flexibility than a limited liability company (LLC). A corporation is allowed to pass income and losses to its shareholders, who report taxes on an individual tax return at ordinary levels.

Is an LLC Better Than a Corporation?

It all depends on your goals. For smaller businesses, limited liability companies are usually a better option. LLCs are easier to set up and receive many of the same benefits as corporations, but with less regulation.

Learn more about forming a Maine LLC so you can decide which business entity is right for you.

Benefits of Forming a Maine C Corporation

  • The strongest form of liability protection possible by insulating your personal assets and finances from business debts, obligations, damages, bankruptcy or other liabilities
  • Several options to create, buy, sell or transfer stock, including publicly
  • The ability to issue more than one type of stock
  • The ability to sell stock to investors inside and outside the U.S.
  • The ability to raise more funds by issuing more stock

Benefits of Forming a Maine S Corporation

It offers several advantages similar to those provided by a C Corp including, but not limited to:

  • Options for creating, transferring and selling stock, though not as many as a C Corp
  • The capacity for up to 100 shareholders
  • Simpler rules than those applicable to C Corporations
  • Easy transfer of ownership simply by selling your stock
  • The possibility of saving money by allowing you to pay less self-employment tax

In this guide, you’ll find information on naming your corporation, getting a Commercial Clerk, the fees you’ll need to pay, business taxes and much more. We also cover what you'll need to register your corporation and how you'll interact with the Department of the Secretary of State in Maine.

Start a Business in Maine Checklist

To help you along the way, use our Starting a Business checklist to keep track of everything you need to do to get your business up and running.

 

How to Form an ME Corporation Yourself in 6 Steps

1

Choose a Unique Business Name and Complete a State Business Search

Every Maine business must have a unique name that hasn't already been claimed by another business in the state. If you’re having trouble coming up with a name, try using our Business Name Generator to gather ideas. You'll need to follow a few naming rules, which you can read about in detail on the Maine Corporation Names page.

Once you’ve chosen a name, you’ll need to make sure it’s available in Maine. To see whether another company in the state is using your desired business name, use our tool to do a Maine entity search. Or, you can also carry out a name search on the state's website.

We can check Maine corporation name availability for you
Use Incfile's Business Name Search Tool

2

Provide an Official Address for Your Corporation

All ME corporations must have a designated address. It could be your residence address (if you’re running the company from your home), a building where your office is located or any physical address of your choice. The address can be outside the state of Maine and can be a P.O. Box.

You may also be able to use a virtual mailbox for your business address. Incfile can provide you with a Maine virtual mailbox where we'll receive your mail, scan it and upload it for your online review. This can be especially helpful if you run a home-based business and don't want your home address published as part of your business public record.

3

Assign a Commercial Clerk

In many states, someone who receives official correspondence and is responsible for filing reports with the Department of State, is known as a Registered Agent. In Maine, this person is referred to as a Commercial Clerk. Every Maine corporation is required to have a Commercial Clerk.

You can fill this position yourself, assign another manager in your business or use a Commercial Clerk service. If your Commercial Clerk in Maine is a person, they must have a physical street address in Maine and must be present during business hours to receive important documents on behalf of your company. You'll appoint your Commercial Clerk when you file your Articles of Incorporation with the Department of the Secretary of State, Bureau of Corporations, Elections & Commissions (BCEC) and formally create your corporation.

All of Incfile’s business formation packages include Registered Agent service. It’s free for the first year and just $119 per year after that. You can also access a digital dashboard to view any document we've received on your behalf.

4

File Your Articles of Incorporation with the Maine Department of the Secretary of State, Bureau of Corporations, Elections & Commissions (BCEC)

Once you've gathered all the information for your corporation, you’ll need to file your Articles of Incorporation with the Department of the Secretary of State, BCEC. This will officially create your business.

Here’s what is typically included:

  • Your business name and type
  • Commercial Clerk's name and address
  • The corporation’s capital structure (number of shares to be issued)
  • Whether the corporation will be managed by a board of directors or shareholders
  • Name and address of each incorporator
  • Signature of incorporator(s)

Your Articles of Incorporation can be submitted via mail, or you can have Incfile file it on your behalf. The ME Corporation filing fee is $145.

Mailing Address if using US
Postal Service

Department of the Secretary of State
Corporations, UCC and Commissions
101 State House Station
Augusta, ME 04333-0101

Mailing Address if using
FedEx/UPS

Department of the Secretary of State
Corporations, UCC and Commissions
111 Sewall Street, 4th Floor
Augusta, ME 04330

You only need to file your Articles of Incorporation in Maine once, but once a year thereafter you'll also need to file an annual report with the Department of the Secretary of State, BCEC in ME. Incfile can remind you about this every year, or we can do it for you if you have us handle the paperwork.

Let Incfile Handle All the ME Incorporation Paperwork for You for $0 + the State Fee
Incorporate Now for Free

What are the fees and requirements to incorporate in Maine?

State Fee State Filing Time Expedited Filing Time
$148 4 Weeks 9 Business Days
State Fee $148
State Filing Time 4 Weeks
Expedited Filing Time 9 Business Days

Public Information & Franchise Tax Report

Frequency

Annually

Due Date

June 1st

Filling Fee

$85

5

Get an Employer Identification Number (EIN) from the Internal Revenue Service

You'll need an EIN to identify your business to the IRS. You use this number for filing and paying taxes, submitting payroll information and payments for your employees and opening a business bank account. You can obtain one directly from the IRS, or Incfile can get one for you as part of the ME corporation creation process.

6

Write Bylaws

A set of rules that govern how a corporation will be run, bylaws detail how many directors the corporation will have, whether the board of directors will have annual meetings and what the voting requirements will be, among other things.

Some states legally require companies to create bylaws, and the state of Maine is one of them. You don't need to file your bylaws with the Department of State, simply keep them with your other business records.

It's always a good idea to write and follow bylaws to protect your business from any future changes and events.

Types of ME Corporations

C Corporation

When you file to start a corporation, by default, it's a C Corp. This is the choice for large businesses that will trade shares in the stock market.

A Maine C Corporation will offer you several liability protections, but it will also be required to adhere to numerous strict rules and regulations. It will also likely have a substantial amount of administrative overhead, and won't enjoy as many tax advantages as other corporation types.

Learn more about C Corporations.

S Corporation

Technically, an S Corporation isn't a business entity the way LLCs and C Corporations are. It's a tax filing status. An LLC or a C Corporation can be an S Corporation. It's just a matter of filing a form with the IRS.

The main reason to file as an S Corp is to save money on self-employment taxes. To get an idea of how much money you might save, use our S Corp Tax Calculator.

If you want your Maine C Corporation to be treated as a Maine S Corporation, file the IRS Election by a Small Business Corporation form, also known as Form 2553 or an S Corp Election form.

Consult with your tax advisor or accountant to determine whether this is your best option.

Learn more about S Corporations.

Compare S Corp vs. C Corp to learn the benefits and drawbacks of both, and decide which one will best suit your needs.

Professional Corporation

Some states, including Maine, allow certain occupations to form Professional Corporations. The Main Professional Service Corporation Act, Title 13, Part 1, Chapter 22-A, Subchapter 1, § 723 defines a Professional Corporation in Maine as:

"...a corporation for profit, other than a foreign professional corporation, subject to the provisions of this chapter."

Title 13, Part 1, Chapter 22-A, Subchapter 1, § 723 also specifies a few of the professions permitted to form a Professional Service Corporation in Maine, which include, but may not be limited to:

  • Accountants
  • Advanced practice registered nurses
  • Attorneys
  • Chiropractors
  • Dentists
  • Optometrists
  • Osteopathic physicians
  • Physicians and surgeons
  • Physician assistants
  • Podiatrists
  • Registered nurses
  • Veterinarians

Show all

Check with the Department of the Secretary of State, BCEC to confirm whether your business should and can be a Professional Service Corporation.

Foreign Corporation

If your business operates in another state and you want to expand into Maine — or vice versa — you’ll need to form a Foreign Corporation.

Learn more about Maine Foreign Corporation registration.

Nonprofit Corporation

Charitable organizations can incorporate as nonprofit corporations. This means all the profits they generate are donated to the organization supported by the charity, minus administrative costs.

A nonprofit corporation is also exempt from federal and state taxes, allowing more of the profit to benefit the charity.

Note: Everything in this guide applies to for-profit corporations, and mostly to C Corps and S Corps. Items listed as requirements for forming a corporation may or may not also apply to nonprofits.

Limited Liability Company

Depending on the type of business you want to start, or your personal circumstances and goals, an LLC may be a better option. For example, you may only want to build a small business that you yourself will run with just a few employees and you may not need the options to buy and sell stock.

A Maine LLC is typically a better option for a smaller business. It's easier to set up, but it still offers you certain advantages you'd get from a corporation. You can even have your LLC treated as an S Corporation for tax purposes to save you money.

Regardless of which way you decide to go, we can help you with your Maine business registration.

Learn more about limited liability companies.

Sole Proprietorship or Partnership

These are the simplest types of businesses to set up. That's because there's no real setup to do. If you don't choose to form a separate business entity, by default, you'll have either a sole proprietorship (just you) or a partnership (you and one or more other people).

Neither of these options provide you with any special benefits or liability protections and can leave your personal assets vulnerable. For these reasons, we don't recommend them.

Compare business entity types to decide which one is best for you.

Helpful Resources from the State of Maine

More Information in This Guide

You’ll find plenty more insight and guidance on the other pages of this guide, including:

Maine Corporation Names

How to search the state business registry and find the right name. Includes information on naming rules, assumed names, reserving names for ME corporations and more.

Maine Commercial Clerks (Registered Agents)

How to appoint, change and search for Commercial Clerks. Also includes the duties they fulfill and the rules they’re required to follow.

Maine Incorporation Fees and Requirements

Details the various fees you’ll need to pay and the state and federal requirements you’ll need to meet. Includes details about Employer Identification Numbers (EINs), state and federal business licenses, annual reports and more.

Maine Corporation Taxes

Covers the various taxes you’ll have to pay to the state and federal governments. Includes details about state taxes such as income and sales, and federal taxes such as income and self-employment.

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