Entrepreneurs must complete a number of legal forms when establishing a business so that the state is informed about the enterprise. The Certificate of Formation and the Articles of Incorporation are two of the most crucial papers. They are not the same thing, even if they have related functions.
Documents that certify a corporation’s existence are called its articles of incorporation. They provide details on the company’s name, objectives, location, and ownership structure and are filed with the Secretary of State. Prior to the corporation being able to conduct business legally, this document must be filed.
On the other hand, a Limited Liability Company (LLC) is a legal entity that is established by a Certificate of Formation. It contains details such as the company’s name, objectives, location, and the members’ names and addresses. Before the LLC can legitimately conduct business, this document must also be submitted.
This means that while both documents demonstrate the existence of a corporate entity, they are particular to the kind of firm being founded. Corporations must file articles of incorporation, while LLCs must file a certificate of formation.
Moving on to related inquiries, you can look up a company’s corporate records on the Maine Secretary of State website to determine who owns it. Names and addresses of the company’s officers and directors, as well as the registered agent for the business, must be included in the filings.
In Maine, LLCs are taxed as pass-through businesses, which means that the company’s gains and losses are transferred to the owners’ individual tax returns. A few states in the US, such as Wyoming, Nevada, and South Dakota, do not impose a corporation income tax.
The owners then pay taxes on their portion of the profits. This implies that companies based in such states are exempt from paying state taxes on their revenue. Last but not least, Maine does impose a franchise tax. Corporations and LLCs that conduct business in the state are required to pay this tax on a yearly basis. The tax’s amount is determined by how much the company’s assets are worth and how much business it conducts in the state.
In conclusion, even though the Certificate of Formation and Articles of Incorporation are both crucial legal documents that prove a company’s existence, they are particular to the kind of company that is being created. Additionally, LLCs in Maine are taxed as pass-through entities and you may look up a company’s owners in the state’s corporate records. Maine has a franchise tax, but some states do not have corporate income taxes.