How to Form a C Corporation in Maine

Introduction

A C corporation is the most common type of business structure. It offers limited liability to its owners and is a good option for businesses that want to make profits without having to pay them out as salaries. In this article, we’ll explain how to form a corporation in Maine.

Choose a unique name for your business.

Choosing a unique name for your business is very important. You’ll want to make sure that the name you choose isn’t already in use by another company or person, and that it’s easy for customers to remember.

In Maine, there are two ways to check whether a company name is available:

• You can visit the Secretary of State’s online database of reserved names (searchable by county).
• You can also search the IRS list of reserved names here.

Appoint a Maine resident agent.

You must appoint an agent for your C corporation. If you are not a resident of Maine and do not have a place of business in Maine, you may appoint an agent who is either a resident or nonresident of Maine. All corporations that are not foreign corporations must have a registered agent appointed in this state. The person acting as the registered agent must be at least 18 years old, able to read and write, and cannot be:

• A stockholder or officer of the corporation;
• An employee whose compensation is based on commission (unless they are also an owner).

Register with the state tax office.

To register with the state tax office, you need to fill out and submit a corporation application for a DBA (doing business as) name. This can be done online at [https://dmv.maine.gov/businesses/filing-and-paying/forms-other-forms/corporation-filing]. Once your corporation is registered with the state and has an EIN from the IRS, it’s time to file your Maine tax return using Form ME 1120C: Corporation Income Tax Return (MTC Forms). You’ll also need to file a federal tax return that includes all of your corporation’s income as well as any stockholder dividends paid during the year.

File required state taxes.

The C Corporation is a tax-paying entity, and you must file the required state corporate taxes. This involves paying state income tax, and you will also have to file federal and state tax returns.

In addition to paying your own corporation’s income taxes, when you operate as a C Corporation in Maine (and any other state), you are responsible for withholding payroll taxes from your employees’ paychecks. As soon as your business establishes its status as an S or C Corporation with the Secretary of State’s office, it must begin withholding this money from each employee’s paycheck.

Obtain an EIN from the IRS.

One of the first things you need to do once you have decided on the type of business entity you want to form is obtain an Employer Identification Number (EIN). An EIN is a federal tax ID number. It’s also called a Federal Tax Identification Number, or FTIN. The IRS uses this number to identify businesses and other entities that are required to pay taxes in the U.S., and it’s essential for running your business.

Before applying for an EIN, make sure that your name isn’t already taken by another company or person in Maine or elsewhere. You can check that at the Business Name Availability page on GovSpot; here are instructions on how to find out if your business name is available there:

• Go to [https://www.govspot.com/business-names/].
• Enter either four letter state abbreviation (e.g., MA) or full state name (e.g., Massachusetts).
• Click “Search.”

Create bylaws and corporate minutes.

In Maine, corporations must have bylaws that govern how the corporation will operate. In addition to specific rules regarding the company’s governance structure, these documents also contain provisions related to issues like directors’ duties and powers, stockholder meetings and voting rights.

Corporate minutes are another document that must be filed with the state when forming a C corporation in Maine. These records include information about each meeting held during the corporation’s existence (or “lifetime”), including who attended the meeting and what was discussed at each meeting.

The two documents can be filed together as part of your initial filing for a new business entity with [the Maine Secretary of State](https://www.maine.gov/sos/cec/businesses/corporations/).

Takeaway:

Here’s what you need to know about forming a C Corporation in Maine:

• Incorporate your business in Maine by filing the Articles of Organization with the Secretary of State and paying the filing fee.
• Make sure you have at least three officers (this can be one person or multiple people) who sign off on the incorporation paperwork, and identify when their terms will end by signing on as “managers” of your corporation.
• Establish rules for shareholders, directors and officers through corporate resolutions or bylaws (we recommend using our template). These rules should include guidelines on how many votes each shareholder can cast at meetings; if any shareholders are allowed to purchase additional shares in the corporation; how often directors must meet; whether shareholders get paid dividends; and any other important details related to running your business as a C Corp., like how much notice is required before certain actions can take place—for example, if new directors must be elected each year because some companies like to switch up leadership positions every few years so that everyone gets fresh ideas while keeping things dynamic!

Conclusion

Forming a C corporation in Maine is the first step to making your business official. The process is easy and takes just a few days, while providing you with many benefits. By forming this type of entity, you are able to keep your personal assets separate from those of your company. You can also take advantage of tax deductions that aren’t available to other types of entities such as sole proprietorships or partnerships – which means more money in your pocket!