Maine LLC Taxes

Maine’s affordable housing and beautiful natural spaces make it a popular place in which to live and start a business. Yet, many new business owners find the process of navigating the state’s business taxes and regulations a bit overwhelming.

No matter the size of your business, if you operate a limited liability company (LLC) in Maine, you must stay up to date on your finances and pay federal, state, and local taxes. Our guide will help you understand which taxes you’ll need to pay for your Maine LLC.

Recommended: Schedule a free consultation with an accountant to stay on top of your taxes. 

Maine LLC Taxes Owed

LLCs benefit from pass-through taxation, which means the business’s profits pass through to its members’ individual tax returns. As a result, your LLC itself doesn’t pay taxes to the federal government or the state of Maine. Instead, LLC owners must pay taxes on their portion of the income generated by the LLC. 

In Maine, LLC owners can expect to pay the following taxes:

Federal Taxes

Regardless of where your business is located, if you have an LLC within the United States, you will have to pay federal income taxes and federal self-employment taxes. These taxes are reported on your Form 1040.

Federal Self-Employment Taxes

It doesn’t matter if your LLC is a single-member LLC or a multi-member LLC; all LLC members must pay self-employment taxes on their share of the LLC’s profits. The self-employment tax rate is 15.3%. 

Federal Income Taxes

Your federal income taxes will depend on your tax bracket, and the cutoffs for individual tax brackets, as well as the percent owed, will change each year. 

Maine State Taxes

Each state has its own laws that dictate how it taxes individuals and businesses. Below are some of the most important state-level taxes for businesses operating in Maine.

Maine Income Taxes

Maine has an income tax rate of 7.15%. This puts it near the higher end of the middle when compared to other states’ income tax rates.

Maine Sales and Use Tax

In Maine, the state sales tax rate is 5.5%. That places it near the middle again when compared to other states. One advantage Maine offers, though, is a lack of local sales taxes. This means you’ll only have to pay the 5.5% sales tax rate no matter where you make purchases in Maine.

Register for Maine Sales, Use, and Service Provider Tax

If your business sells taxable goods or services in Maine, you must register for the state’s sales, use, and service provider tax. You can do this online at the Maine Revenue Services (MRS) website.

Additional State Taxes

The MRS oversees the collection of various state-specific taxes that businesses may have to pay, depending on their location, industry, and number of employees. Some examples of these additional taxes include:

  • Blueberry Tax
  • Cannabis Excise Tax
  • Fuel Tax
  • Insurance Premiums Tax
  • Tobacco Tax

For more information, visit the state’s Business Taxes page.

Maine Local Taxes

The local laws and ordinances in Augusta may differ greatly from those in Bar Harbor. Regardless of where you live in Maine, we recommend you check with your local jurisdiction to ensure your business obtains the required local permits and follows any local regulations that may impact its operations.

Maine LLC Compliance

Your business must obey Maine’s state and local laws in order to remain in good standing. While Maine LLCs technically don’t file taxes with the state, Maine businesses must still file an annual report each year.

Maine LLC Annual Report

To remain in compliance with the state of Maine, your LLC must file an annual report each year by June 1. You can file this by mail or online with the Maine Department of the Secretary of State along with the $85 filing fee.

Failure to file on time will result in a $50 late fee added to the original $85 filing fee. If you still don’t file and pay by Aug. 5, the state will intervene and shut down your LLC.

Check out our Maine LLC Annual Report guide for more information on this process.

LLC taxes are complex. While our guide can provide you with important information, we recommend you schedule a free consultation with an accountant to ensure you handle your business taxes correctly.