The good news is that the procedure is rather simple if you’re planning to launch a business in Maine and prefer to keep things simple by acting as a single proprietorship. A step-by-step tutorial for registering your single proprietorship in Maine is provided below.
Select a business name in the first step. You must choose a name for your company that is not already being used by another Maine-based organization. By conducting an online search for the Maine Secretary of State, you can determine whether your preferred business name is available. Once you’ve located an available name, you can submit a Name Reservation Application and a $20 deposit to reserve it for up to 120 days.
Obtain an EIN in Step 2 The IRS mandates the use of an EIN, or Employer Identification Number, as a distinctive identity for your company. You need an EIN to open a business bank account, submit taxes, and apply for business licenses and permits, even if you don’t have any workers. The IRS website offers free access to an EIN.
Register with the State of Maine in Step 3
You must file a Certificate of Assumed Name with the Maine Secretary of State’s office in order to register your single proprietorship with the state of Maine. Your business name, your name and contact information, as well as your EIN, must be included on this form. A Certificate of Assumed Name must be filed for $35.
Obtain all necessary licenses and permits in step four. You could require extra licenses and permits from state or municipal authorities depending on the nature of your firm. For instance, the Maine Department of Health and Human Services will need you to obtain a food service license if you plan to open a food service business. You can learn the licenses and permissions you require using the State of Maine’s Business Answers webpage.
The U.S. Bureau of Labor Statistics estimates that as of May 2021, Maine has around 91,190 self-employed people, or 14.2% of the state’s total employment. What percentage of Maine’s firms are small?
In 2020, there were 147,000 small businesses in Maine, accounting for 99.4% of all enterprises in the state, according to the U.S. Small Business Administration. What is a sole proprietorship, exactly?
One person owns and runs the business as a lone proprietor in this form of business structure. Because this kind of business is not a separate legal entity, the owner is personally liable for all business-related matters, including any debts or legal obligations. How much does getting an EIN in Maine cost?
It costs nothing to get an EIN from the IRS. However, there can be a fee if you decide to use a third-party provider to get your EIN. It’s vital to remember that getting an EIN doesn’t require payment because the procedure may be completed easily and for free by going through the IRS website.
Instead of an LLC, the article concentrates on establishing a sole proprietorship in Maine. However, the filing fee in Maine is $175, which adds to the expense of forming an LLC. In addition, paying for any licenses and permits could involve additional expenses. It is advised that people seek the advice of a legal or financial expert to fully comprehend the expenses related to forming an LLC in Maine.
Yes, sole proprietors in Maine are required to pay taxes on a quarterly basis. To make sure you are ready to pay these estimated taxes when they are due, the article advises saving money aside each month.