One of the few states in the US that imposes a use tax is Maine. Use taxes are levied on products and services that are bought outside of Maine but utilized there. The state levies the tax in order to make up for the revenue lost from the sales tax that would have been levied had the purchase been made within the state.
The current use tax rate in Maine is 5.5%, the same as the state’s sales tax. Purchases from out-of-state merchants that don’t have a physical presence in Maine that are made online, via mail order, or over the phone are subject to the use tax. This implies that you must pay the use tax if you buy a product from a store in another state and use it in Maine. Does Maine Require the Registration of a DBA?
A DBA (Doing Business As) registration is not mandated by law in Maine. However, it is advised that you register a DBA if you are doing business under a name other than your own. You can create a distinct corporate identity and safeguard your personal assets by registering a DBA.
A Certificate of Assumed Name must be submitted to the Maine Secretary of State’s office in order to register a DBA there. The owner’s name, address, business name, and the purpose of the company must all be listed on the certificate.
You can add a DBA to your LLC if you currently have a Limited Liability Company in Maine and wish to operate under a different name. You must submit a Certificate of Assumed Name to the Maine Secretary of State’s office in order to add a DBA to your LLC. The certificate must include the name and address of your LLC, the owner’s name and address, the purpose of the company, and the name you plan to use for business operations. You will be able to operate your business under the new name once the certificate has been submitted and accepted.
You might need to get a business license if you sell on Etsy in Maine. Depending on the kind of business you run and where it is located, different licenses have different criteria.
Most businesses in Maine are required to apply for a license from the city or municipality where they are situated. It’s possible that you’ll also need to apply for a home occupation permit if you run your business from your house.
Finally, Maine levies a use tax on purchases acquired outside the state but put to use inside the state. While it is not needed by law, it is advised if you are doing business in Maine under a name other than your own. A Certificate of Assumed Name must be filed in Maine in order to add a DBA to an LLC. If you operate a business in Maine and sell on Etsy, your location’s city or municipality may require you to obtain a business license.