Maine LLC Operating Agreement

If you live in Maine and plan to establish a limited liability company (LLC), consider completing the LLC operating agreement form. The main features of this company format are their internal structure flexibility (compared to other corporations) and reduced financial risks and personal responsibility. It is indeed one of the essential official forms to sign if you administer a restricted liability company.

Why should you consider completing this form? First of all, it will ensure an extra protection layer to your personal properties by separating private and the company’s financial accounts and owners’ personal earnings from those of the enterprise. In turn, this measure will have a positive effect in case of sudden bankruptcy, litigation, and other financial troubles that may occur. Plus, this legal tool will provide you more protection against claims in court.

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Once the document comes into force, the employer will get additional tax benefits (such as cross-cutting tax instead of double taxing) and credit-related offers. Besides, heading a classic LLC increases your overall credibility and flexibility in the eyes of both the clients and creditors.

If you are a potential LLC owner, we suggest using the LLC agreement form to manage your business and keep personal assets secured in the courts (if necessary). Situations might be different, and it sometimes happens that companies declare bankruptcy, and the case goes to court. Therefore, one needs to provide oneself with additional liability safety using crossing taxation mechanisms of a partnership or a sole proprietorship. This agreement form is legal proof of the entity’s existence and states its administrative rules and regulations.

In most cases, the Operating Agreement should feature:

  • Its proprietors’ disclosed names, location, and personal information
  • Purpose, circumstances and conditions, and founding date of the company
  • Names of the entity’s members and parties
  • Share of every member in percentage
  • Administrative principles described briefly
  • Other necessary information

Seeking a proper agreement template and filling it out in Maine is not as complicated as it may seem, especially if you use our easy-to-use form-building software.

Below is a concise guide on setting up an enterprise with limited liability in the state of Maine.

Maine LLC Definition and Laws

Before submitting the agreement, it is vital to get acquainted with the current LLC-related laws and the necessary steps towards filling out such forms.

LLCs can have one or more owners with the status of LLC “members.” An LLC with one holder is called a single-member LLC, while an LLC with several administrators is known as a multi-member LLC.

As stated above, an LLC is an enterprise with extra liability security in the courts. Although it is considered to have a more formal structure than a partnership or a sole proprietorship, it is simpler to establish and run than a corporation.

The LLC agreement’s primary goal is to establish the overall policies, procedures, and business regulations regardless of the entity’s volume. If you plan to start a limited liability company in Maine, you must know that among the most popular types of LLC agreement forms are the following:

  • Multi-member agreement
  • Single-member agreement.

If your business is entirely owned by its members, it is known as member-managed; otherwise, if the company’s members choose a single administrator to run it, it is called a manager-managed company.

Keep in mind that if you wish to widen your company’s physical presence in several states, you will have to register your enterprise as a foreign LLC in each state where you plan on developing it further.

Maine’s government requires that an operating agreement be accredited at the time of completing the Certificate of Formation. For more in-depth knowledge of Maine’s association and entities-related laws, we advise you to refer to Title 31 of the State Law (Section 21-1531(B)).

Steps to Forming an LLC in Maine

Below is a guideline on how to register an LLC in Maine.

Think of a Proper Name for Your Enterprise

Before choosing a business name for your LLC, we suggest you browse the Maine Secretary of State’s records to ensure that the subject name is available, unique, and coincides with the local legal requirements. Mind that for all LLC entities’ names, either the abbreviation “LLC” or “L.L.C.” is compulsory.

Choose a Proper Registered Agent

Once you have decided on the name, select your LLC’s Registered Agent.

This person will be accountable for many things in your company. For instance, a registered agent is in charge of all the formalities, legal communication, and issuing or receiving other documents on behalf of the LLC. A Registered Agent is also responsible for all the Service of Process communication forms, such as potential subpoenas, complaints, lawsuits, summons, and others.

Basically, in Maine, you can choose an agent from these three options:

  • You or your company’s representative
  • An individual (family member, or any other trusted person) who is a resident of Maine and has a valid street address there
  • A Commercial Registered entity that is officially running a business in Maine

File the Maine Certificate of Formation Online of Offline

Certificate of Formation is the same thing as the Article of Organization or Certificate of Organization. Completing it is a necessary procedure that can be performed either as an online filing or as a standard paper filing. Before submitting your papers, ensure that your set of documents includes:

  • The company’s name, official address, purpose, description, and expected terms of operation.
  • Authorized signatures.
  • An Initial Report Form with the essential identifying data.

Do not forget to indicate the registered agent, as well. Besides, make sure all relevant parties sign the paper and notarize it.

A filing non-refundable sum of $175 is required before filing the documents in Maine; the payment is accepted as a money order, a check, by credit card, or in cash. Remember that for a foreign LLC, there is a separate downloadable form.

Draw up a Maine Operating Agreement

In Maine, the Legal code demands that LLCs’ owners conclude an operating agreement as per Revised Statutes (Section 1531.1.B). Your enterprise must have an operating agreement curtailing the risks of future discords and contests. Ensure you file all the necessary documents to the Secretary of State’s office before initiating the process. You are not obliged by the law to do so, but we strongly advise you to apply for the document and keep the form for future reference.

Acquire an EIN for Your Business Entity

After succeeding with the previous step, you can initiate your EIN application. All Maine organizations must have an EIN (also known as Federal Tax Number or Federal Employer ID Number). The document is required by the Internal Revenue Service (IRS) to determine and classify various associations, enterprises, and business entities in particular for tax-related matters.

While the whole procedure is free in the state of Maine, an EIN can broaden your company’s perspectives. Firstly, it will enable your company to hire people and officially pay your future workers. Then, it will allow you to obtain loans from a wide range of financial institutions, gain the company’s credit cards, and so on. To do it properly, one has to complete and file the official request to the IRS offline or fill in the Online Application form.

After this step is complete, you can take your time to start seeking a decent business accountant, separate your private and business assets, and deal with other meaningful business-related issues.

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Published: Jul 17, 2022