How to Form a Maine Professional Limited Liability Company

If you’re a licensed professional looking to form a limited liability company (LLC) with others in your profession, you might want to consider forming a professional limited liability company (PLLC) in Maine. Maybe you’re ready to get going but know there’s a process you need to follow and paperwork that needs completing. No need to stress — ZenBusiness is here to help. In this guide, we’ll take you through the steps to launch your Maine PLLC.

Which professions can form a Maine professional limited liability company?

Members of the following professional services in Maine who want to use a limited liability company structure can form a PLLC:

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

If your licensed profession is not on this list, you may still be able to form a PLLC. A regular LLC is also an option. To read more on this topic, see our LLC vs PLLC comparisons page or our PC vs PLLC page.

How to form a Professional Limited Liability Company

Choose a name for your Maine PLLC

A Maine PLLC needs to include the words “limited liability company”, “limited company”, or an acceptable corresponding abbreviation in its name. Check Maine’s LLC law for full naming restrictions. While you’re brainstorming potential names, it’s a good idea to search Maine’s Secretary of State business name database to see if they’re still available.

Got your unique business name figured out? If you like, you can reserve it with the state for 120 days by paying a $20 fee and mailing an Application of Name Reservation to the address below:

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

*Make the check out to the Maine Secretary of State.

Or, if you want to spend time doing what you like and avoid the paperwork, use ZenBusiness’s name reservation service. While you’re at it, this is the perfect time to register your domain name.

Select a Maine registered agent

A Maine professional limited liability company should have a current registered agent in the state. A registered agent (sometimes referred to in Maine as a commercial clerk) is the official contact when it comes to receiving government materials from the state’s business formation agency and legal notices, such as subpoenas.

Maine allows for both commercial and non-commercial registered agents. In either case, your registered agent can be a person 18 years or older, a registered Maine domestic business entity, or a foreign business entity (out-of-state) allowed to operate in Maine.

When it comes to fulfilling this role, there are certain factors to keep in mind including:

• Registered agents need to always be present during business hours
• Registered agents must have a physical address in Maine (P.O. boxes or mail drops are not allowed)
• Addresses for registered agents are publicly available

To minimize the hassle of trying to find one, let ZenBusiness connect you with one through our registered agent service.

Complete and file a Maine Certificate of Formation

To form a Maine PLLC, an authorized representative needs to file a Certificate of Formation with the Secretary of State’s office.

The certificate of formation needs to include the following:

• PLLC name
• Registered agent details (i.e., name and address)

Mail here:

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

The fee to file is $175 and can be paid in person or via mail.

Another step in the process is to decide which management type will work best for the organization: member-managed or manager-managed. Member-managed means that your members will take a more active role in daily operations and decision-making. This may work well if you have a smaller number of members. Larger professional limited liability companies may benefit from a manager-managed setup where day-to-day affairs are handled by an elected or employed manager who may be from outside the company and may or may not have a stake in ownership.

Create a Maine operating agreement for the PLLC

Every Maine LLC is required to have an operating agreement according to statutes § 31-1521.

An operating agreement sets out the rules and acceptable conduct for your PLLC. It can include subjects such as succession planning, member responsibilities, member assets, and meeting and voting rules.

Handle Maine tax obligations

A Maine PLLC likely needs to have an employer identification number (EIN), also known as a federal tax identification number. You can get it from the IRS for free or have ZenBusiness take care of getting your EIN for you, removing one more to-do item off your list.

One of the advantages of a PLLC structure is its “pass-through” nature. This means that profits from the organization are passed on to its members without first being taxed at the business level. A Maine PLLC can also choose to be taxed as a C corporation or, if it applies and qualifies, an S corporation. We suggest you review the state’s business taxes page, as well as its department of revenue site for additional information.

There may also be regional tax requirements, so be sure to check with your local government and/or industry group for details.

Obtain Maine business licenses and permits

Maine doesn’t require a general business license at the state level, but some local governments do. Check with them to see what local licensing your business needs to operate there.

Additional licenses and/or permits may also be needed depending on your industry, location, and other factors. Unfortunately, there’s no central place to check for all the required licenses and/or permits. As such, it’s critical that you touch base with government offices and your industry group to make sure you’ve got it all covered. Or, you can save yourself the time and use the ZenBusiness business license report service. This way you won’t risk missing one and can free up your time to focus on your PLLC.

Acquire insurance for your Maine PLLC

At least two types of commercial insurance are recommended by the state for business entities: property insurance and liability insurance. If your Maine PLLC will be hiring employees, it also needs to obtain workers’ compensation insurance and unemployment insurance.

We recommend that you speak with an insurance agent or provider to ensure appropriate coverage.

Open a business bank account

It’s best practice to have a business bank account as it establishes a clear separation between the finances of the members and the PLLC entity. Also, having a separate bank account will make things easier and more efficient during tax season.

Ready to kick-start your business?

At ZenBusiness, we are proud to support small businesses through a variety of different tools and services. Whether you need a registered agent service, want to reserve a business name, or are looking to register a domain, our goal is to help you stay on the road to success. Check out our services and contact us today to see how we can help you grow your company.