LLC Annual Report and Tax Filing Requirements in Maine

A limited liability company (LLC) has many advantages. An LLC gives its owners limited liability. It also offers flexible management and tax structures. However, you do need to file documents with the state and pay fees to maintain an LLC.

Let's look at the most important ongoing reporting and state tax filing requirements for Maine LLCs. (If you'd like information about other states' LLC requirements, check out our article on LLC tax and filing requirements.)

Maine LLC Annual Report

The State of Maine requires you to file an annual report for your LLC with the Maine Secretary of State (SOS). You can file your annual report either:

• electronically through Annual Report Filing Online, or
• by mail by creating a preprinted annual report form.

You'll need your LLC's state charter number in both cases.

The annual report must be filed each year by June 1. As of 2024, the annual report filing fee for a Maine LLC is $85. (Out-of-state LLCs pay a higher fee.)

State Business Taxes in Maine

When it comes to income taxes, most LLCs are considered "pass-through tax entities." By default, multi-member LLCs are taxed as partnerships and single-member LLCs are taxed as disregarded entities. Because an LLC is a pass-through entity, it passes the responsibility for paying income taxes to its members. As a result, the LLC doesn't pay taxes on its income, only the members do.

As an LLC member, you'll report and pay your share of the LLC's income on your personal tax return. You'll file your individual and business tax returns with Maine Revenue Services (MRS). You can register your business through the Maine Tax Portal (MTP) to file returns and pay taxes for you and your LLC.

Electing corporate tax status. While LLCs are typically taxed as partnerships by default, you can choose to have your LLC taxed as a corporation for federal tax purposes. You can elect corporate tax status by filing IRS Form 2553 with the IRS. If you elect to have your LLC taxed as a corporation, your LLC will also be taxed as a corporation in Maine and you'll need to pay the state's corporate income tax. In Maine, the corporation income tax is calculated at a series of marginal rates based on your LLC's adjustable federal taxable income. Use Form 1120ME to file your LLC's corporate income tax return. Check out the MRS's corporate income tax webpage for more, including answers to frequently asked questions and guidance documents.

Pass-through entity withholding and returns. Maine requires pass-through entities that have members who aren't Maine residents to file Form 941P. In addition, if your LLC has nonresident members, your LLC must either:

• withhold income tax on behalf of nonresident members
• obtain an exemption from withholding, or
• file a composite tax return.

You can find more information on the MRS's pass-through entity withholding and returns webpage.

Maine Employer Taxes

If your LLC plans to have employees, you must pay employer taxes to the federal and state governments. Before you start reporting and paying these taxes, you'll need to apply for an employer identification number (EIN) from the IRS.

Withholding employee wages. As a Maine employer, you must withhold and pay employee income taxes to the MRS. Register your business for withholding tax through the MTP or complete a paper Application for Tax Registration. You must file withholding returns every quarter using Form 941ME. You must also file an annual reconciliation statement (Form W-3ME) each year. Depending on your LLC's annual withholding tax amount, you'll need to pay withholding taxes either quarterly or semiweekly. You can file your withholding returns and pay your taxes through the MTP. Check out the MRS's income tax withholding FAQ webpage for more details about when and how to file.

Unemployment insurance (UI) tax. In addition to withholding taxes, your LLC will probably need to pay state UI taxes to the Maine Department of Labor (MDOL). Your business can register for an unemployment tax account with the DOL using its self-service portal, ReEmployME. After you register your LLC, you'll need to file quarterly tax and wage reports and make payments. You can use ReEmployME to submit these reports and make payments. The MDOL website has a lot of helpful information for employers including an Employer's Guide to Maine Unemployment Laws.

Maine Sales and Use Tax

If your LLC plans to sell taxable goods or services to customers in Maine, you must collect and pay sales tax to the MRS. You must register for a sales tax account with the MRS either through the MTP or by submitting a paper Application for Tax Registration. (This application is the same form used to register to pay other state business taxes such as employer taxes.)

After you've registered, you'll be issued a retailer certificate. Depending on your average monthly tax liability, your business must file sales tax returns either monthly, quarterly, semiannually, or annually. You can file your returns and make payments through the MTP.

Visit the sales, use, and service provider tax FAQ webpage of the MRS website for more information.

LLC Registration in Other States

If your LLC plans to do business outside of Maine, you'll need to determine whether your LLC needs to register as an out-of-state (foreign) business in whichever state it has business activities. Every state has different rules for when an out-of-state business must register or qualify.

But usually, you'll need to qualify as a foreign business if your LLC:

• has a physical presence in the state (such as an office, warehouse, or store)
• hires employees in the state, or
• solicits business in the state (such as by telephone, print ads, mail, or the internet).

You should check each relevant state's laws around qualifying as a foreign business. For more guidance on when to register, see our state guide to qualifying to do business outside your state.

More Information About Maine LLCs

Maine offers many resources to help entrepreneurs plan, start, and grow their small businesses. Maine's state website has a Starting a Business webpage with useful information, including guidance on:

• business plans
• business capital and financing options
• business and tax registration
• business licensing
• trademarks and other intellectual property
• construction permits and inspections, and
• employment and labor laws.

While many resources are available, starting and running a business can get complicated. If you're unsure about how to register your business with the SOS, MRS, or MDOL or you don't know what your tax liabilities are, talk to a Maine business lawyer or tax professional. They can guide you through the reporting and filing process. If you're looking for general guidance related to operating your LLC, take a look at the articles in the LLC section of our website.