To dissolve a limited liability company one has to take up a set of required steps. In Maine, if you and the members of the LLC want to discontinue business, then it is necessary to dissolve their business legally to avoid any administrative and legal consequences. To dissolve an LLC in Maine, you are required to submit a complete Article of Dissolution to the Secretary of State. Before submitting the Article of Dissolution, one must follow the operating agreement.
If you have a Maine LLC (domestic or foreign) you must have an operating agreement. The first step towards the dissolution of Maine LLC is to follow the operating agreement. There are some points to be noted before proceeding with the official paperwork. At first, make sure all the members of the LLC are agreed to dissolve the business. Once all the members are ready, their consent should be recorded via voting. After casting their vote in favor of the dissolution, the legal process must be started. Here are the steps to address for dissolving Maine LLC.
On this page, you’ll learn about the following:
- How to Dissolve an LLC in Maine
- After Dissolving Your LLC
- Reasons Behind Dissolving Maine LLC
- Maine LLC Dissolution Review
How to Dissolve an LLC in Maine
Dissolution of Maine LLC requires three broad procedural steps. Having an Maine LLC Operating agreement, close all the tax accounts, and finally submit the Articles of Dissolution form to the Maine Secretary of State.
Step 1: Follow Your Maine LLC Operating Agreement
When you have started an LLC as a business entity, then there is an operating agreement that is formed. There are complete details of how the company will function and grow in that operating agreement, which acts as a comprehensive guide. There is also a dissolution process, which is added to your agreement. The common dissolution steps that almost every LLC follows are:-
First of all, the dissolution vote will take place among the LLC members in the dissolution meeting. If the majority is with the YES, then the process goes into legal proceedings.
- All the dissolution votes will be noted down and recorded with the minutes of the meeting or a consent form.
- After that, a formal date for dissolving the LLC will be decided.
- The next step is counting the LLC assets and dividing them among the stakeholders and members accordingly.
- Finally, the creditors of the business are notified, and the debts of the business are settled.
This is a general process. However, it is strongly recommended to seek professional help to avoid any complications when it comes to terminating an LLC.
Get a Professional Agent Service
When it comes to a limited liability company dissolution, it is important to get professional help. Maine registered agent will guide you with everything you need to close your limited liability company. While choosing a registered agent make sure they have a physical street address in the state. A professional service provider helps you to file the Article of Dissolution and close your various tax accounts without any hassle. Below are the best LLC services we strongly recommend for you.
Step 2: Close All Tax Accounts
Every action that an official business takes is legally bound to some minimum business taxes. For that, various accounts, especially business entity tax account, are maintained by the state government with the help of various departments. You should consider all the taxes that you have paid for your LLC’s duration and make a list of them.
You must contact all government entities and clear the amount of outstanding taxes due until the date you have decided for dissolution. All the taxes must be paid in advance so that you don’t face any issues in the further process of shutting down your LLC.
Some of the common taxes that limited liability companies have to pay are:
- Unemployment insurance tax
- Employee withholding tax if your LLC has employees.
- If your LLC is engaged in selling taxable goods then they are liable to pay the sales and use tax.
Most of these taxes are normally filed, but some departments require official paperwork, without which it is impossible for the business to close their accounts. Apart from business taxes, federal taxes, personal income taxes, and franchise taxes are to be considered. For the franchise taxes, a franchise tax form is required.
That is why the LLC owner should go through the sales tax guide and hire an accounting service. If you want to do the accounting yourself or make accounting easy, try FreshBooks.
While dissolving the Maine LLC, the owner does not require to obtain a tax clearance certificate. However, if you have filed federal taxes, then you must go through the final return option on your IRS form.
The IRS form for the LLC that are classified as partnerships is form 1065, and those LLC’s who have registered themselves as corporate should check IRS form 1120.
Step 3: File Articles of Dissolution
There is a list of dissolution documents that you, as an LLC owner, have to file. Once these articles are filed, the legal existence of the LLC will be over. Like an Maine Certificate of Formation, one has to file Maine LLC Articles of Dissolution. The dissolution procedure and filing the articles of dissolution form is very easy and is discussed below.
- First of all, the LLC owner(s) has to file the Article of Dissolution. There are multiple methods of filing available, such as file by mail, in-person drop, or/and online filing. To get the application form you need to visit the Secretary of State Website of Maine state.
- You can follow the filing instruction on the official portal so that the steps for dissolution will be easier to complete.
- In that particular SOS website, the LLC owner has to look for the Domestic LLC Articles of Dissolution page.
- If you want to dissolve Maine Foreign LLC then look for the Foreign LLC Dissolution process.
- There is a form available on this page, which is the article of dissolution you are looking for. You have to download that pdf form and start filling it.
- You must fill in all the important and legal information in the form, so you should be extra careful.
- After filling in all the important information, you must choose the mode of payment you want to use to pay the LLC dissolution filing fees.
- After filling in every detail, one should submit the form through an official mail address and make a payment.
- It takes 3-5 business days after filing of articles of dissolution if you are filing it by mail or in-person.
Secretary of State
Division of Corporations, UCC and Commissions
101 State House Station
Augusta, ME 04333-0101
Filing Fee: $75
The LLC you owned is dissolved, and you are free from all the liabilities linked with the LLC and its taxes. A copy of both original articles and recorded articles should be submitted in front of the probate judge. Now it’s his call that he accepts your expedited dissolutions or not.
Points to Be Noted When Dissolving Maine LLC
Apart from these three steps, no major dissolution rules are there in Maine. However, there are some other tasks one has to keep in mind while dissolving an LLC legally.
There are some purposes of LLC that require some attention even after dissolution, known as winding up. The task of winding up includes.
- For a certain period, the property of a business requires preservation.
- If there is any civil case against the LLC, then the owner needs to finish them.
- Settle all the existing disputes of LLC.
- Transfer all the property of LLC to the names of partners.
- Release all the liabilities that the LLC owes to others.
- Rightful distribution of all the assets among members, according to their percentage of partnerships.
Cost of Dissolving LLC
LLC cost in Maine includes the formation as well as dissolution fees. To dissolve an LLC in Maine, LLCs have to file an Article of Dissolution. The filing fee is $75. The details are mentioned on the second page of the article dissolution filing form. Following are the ways to pay for the dissolution,
- You can select a payment pick-up option.
- There is an option of direct account transfer through your prepaid accounts.
- LLC owners can also use their Credit cards, providing their complete details and types. Along with that, an original signature is required to authorize the transaction state will make.
After Dissolving Your LLC
After you formally dissolve your LLC, your business name will not be reserved anymore. Any other business entity will be eligible to use your Maine LLC name immediately after 120 days of dissolving your LLC. On the other hand, if you have a foreign LLC in other states, then you must comply with the SOS of the state after the dissolution of your LLC in Maine. A registered agent can help you do the needful.
Reasons Behind Dissolving Maine LLC
Maine has a lot of opportunities for an entrepreneur. But if they don’t take care of the business, they will get on the verge of dissolving it. There can be so many reasons for this, and they are all as essential as the other ones. Want to know why would someone get to the verge to dissolve an LLC in Maine? Here, check the following ones,
- It can be because the company directors cannot get to the solution of an issue.
- If the company cannot get better outcomes from the company, it is bound to shut down.
- People want profits, and if the company is regularly getting into debt, it is not good to keep the company going.
Top Businesses in Maine!
It is a great idea to start an LLC in Maine. But if someone is doing it without proper info, then they are doing it wrong. With the help of the facts and figures, it will be possible for the person to know what to do. But the research indeed takes a lot of time. So here, we have done it already for you!
- Finance: It is an essential sector of a lot of states. But when it is about Maine, then the industry is contributing the most to the economy. With the help of this industry, people are getting jobs, but they are also getting more money. It contributed about $11.53 billion in the GDP and induced growth too.
- Health care: Health care tends to be a vital industry these days as what it has in treasure keeps a check on the future. It is an industry that comes on the second of the list in the contribution to GDP. The amount totaled to be $8.03 billion, and it is a combination of social assistance and educational services.
- Government enterprises: People tend to use government services a lot too. They can provide the services at a better price and in good quality too. But even with that, they have made an enormous contribution to the GDP too. The contribution is more than what private or other personal services are providing to the economy. They contributed $6.83 to the GDP, whereas government services contributed $7.69 billion.
Maine LLC Dissolution Review
Time needed: 5 minutes.
Here’s a recap of the steps you must follow when dissolving your Maine LLC. Click on the steps in this list if you want to read the full detail.
- Follow Your Maine LLC Operating Agreement
Remember that when you started, you created an operating agreement. Use this agreement as a guide in proceeding with the dissolution of your LLC.
- Close All Tax Accounts
Make sure you close all your tax accounts to avoid incurring further costs.
- File Articles of Dissolution
File the article of dissolution to make it known to the state where your LLC operates is that you are indeed no longer in business.
What is the Cost to Dissolve an LLC in Maine
To dissolve an LLC in Maine you need to file the Certificate of Cancellation with the Maine Secretary of State via mail for $75.
Dissolving an LLC in Maine can be a relatively straightforward process if done correctly. However, it is important to understand what the costs associated with the dissolution process are. This article will discuss the various costs that may be associated with dissolving an LLC in Maine.
The first cost associated with dissolving an LLC in Maine is the filing fee. This fee is required to be paid to the Maine Secretary of State when filing the articles of dissolution. The cost varies depending on the type of entity being dissolved and the method of filing. For example, a regular LLC dissolution filing fee is $100, while an expedited filing fee is $150.
The second cost associated with dissolving an LLC in Maine is the cost of notifying creditors. When dissolving an LLC, it is important to notify creditors of the dissolution in order to ensure that all debts are paid off. This can be done through a notice sent to creditors or through publishing a notice in a newspaper. The cost of notification will vary depending on the number of creditors and the method used to notify them.
The third cost associated with dissolving an LLC in Maine is the cost of winding up the business. This includes paying off any remaining debts, distributing any remaining assets, and closing any remaining accounts. This cost can vary depending on the size and complexity of the LLC.
Finally, the fourth cost associated with dissolving an LLC in Maine is the cost of filing the final report with the Maine Secretary of State. This report is required to be filed within two years of the date of dissolution. The cost of filing the final report varies depending on the method of filing and the complexity of the LLC.
Overall, the costs associated with dissolving an LLC in Maine can vary depending on the size and complexity of the LLC. It is important to understand these costs prior to filing the articles of dissolution. Additionally, it is important to ensure that all debts are paid off, all assets are distributed, and all accounts are closed prior to filing the final report. By doing so, the dissolution process can be completed smoothly and at a minimal cost.
Yes, in Maine, there is a fee of $75 to be paid for filing the Articles of Dissolution. Articles of Dissolution must be submitted to the Maine SOS.
No requirement of revenue department clearance is required until the SOS of Maine accepts the dissolution form.
The name will also get deregistered with the dissolution of the LLC. But the name will not be allotted for the next 120 days. After that, if some business wants to name their LLC after the name chosen by you, then it is their choice.
If you have not dissolved your LLC, you are liable for business privilege tax, and if it is not paid on time, you are leveraged with 10% of the amount of tax or $50. After that, the additional penalties will increase by $1 per month. If it goes unpaid for a longer duration, then the chances of seizing your property can also recover the tax.
Yes, if you are dissolving your LLC, you have to pay some amount to the probate judge who was also present during your LLC formation in the probate office. The minimum fee of the judge is $50, which can vary.
Limited liability companies reduce owners’ personal liability. Having an LLC is quite cost-effective. However, if it is required to close down the business, then the dissolution process should be done legally. Get a professional service to get everything done. We hope this article helps you to close your LLC in Maine. If you have any query do let us know in the comment box.