How to Start a Business in Maine: Complete 8-Step Guide for 2025

This post is for information only. You are responsible for reviewing and using this information appropriately. This content doesn’t contain and isn’t meant to provide legal, tax, or business advice. Requirements are updated frequently and you should make sure to do your own research and reach out to professional legal, tax, and business advisers, as needed. Businesses outside of Maine will have different steps and requirements. To sell products using the Shopify platform, you must comply with the laws of the jurisdiction of your business and your customers, the Shopify Terms of Service, the Shopify Acceptable Use Policy, and any other applicable policies.

Why do all of Maine’s cities have a peculiar small-town feel? One reason could be that Mainers are keen on shopping locally. L.L.Bean, for example, still calls its birthplace of Freeport home, more than a century later—an icon of Maine’s rugged heritage. 

With more than 99% of Maine businesses classified as small, including thousands of Shopify merchants, there’s room for your idea, too. Here’s how to start a business in Maine, step by step.

Why start a business in Maine?

Maine offers entrepreneurs several distinct advantages: lower startup costs, a supportive small business network, and access to major Northeast markets. The Pine Tree State is more affordable than its New England neighbors, making it an attractive option for budget-conscious entrepreneurs. 

What really sets Maine apart, though, is its welcoming small business community. The state’s passionate “buy local” culture creates a natural support system for new businesses, giving startups a meaningful advantage in their early days.

Entrepreneurs in Maine also benefit from dedicated business development centers and specialized mentorship programs. The state offers Maine-specific financing options, while its Department of Economic & Community Development serves as a one-stop resource hub for businesses at every stage of growth.

How to start a business in Maine: 8 steps

1. Choose a business idea
2. Name your business
3. Create a business plan
4. Choose a business structure and register your business
5. Obtain business licenses and permits
6. Get business insurance in Maine
7. Plan for startup costs and funding
8. Market your business

Let’s break down each of these steps to help you get started.

1. Choose a business idea

Every business starts with a simple business idea. Maybe it’s a product that solves a problem or a service sorely missing in your community. But before diving in, ask yourself two key questions before pursuing your project:

• Who is your customer? Understand who you’re selling to. Find out who they are, where they live, and what they do with their time. Are they individuals or other businesses? If you want to sell goods, is your target customer more likely to visit you online or in person at a brick-and-mortar shop? To answer these questions, conduct market research and tune into industry trends.
• Can your idea make money? Whether you sell products or services, you have to make a profit for your business to survive. Consider your pricing, distribution model, and overhead costs. Determine what it will take to break even. How long will it take you to reach a healthy profit margin?

2. Name your business

Your business name is often the first impression your brand makes. A good name is simple, memorable, and immediately conveys what you do. Choose something that’s flexible and stays relevant even as your company grows. Other guidelines to consider when picking a business name in Maine include the following:

• Choose an available name. Your business name must be unique in Maine. Search Maine’s Bureau of Corporations, Elections and Commissions to see if your top choices are available for registration in the state.
• Follow naming rules (depending on your business entity). If you’re forming a limited liability company (LLC) or corporation in Maine, your business name must contain words or abbreviations that signal your legal structure. For example, “Limited Liability Company” or “Limited Company” or the abbreviation “L.L.C.,” “LLC,” “L.C.,” or “LC.”
• Avoid restricted terms. Your business name cannot include obscene language or anything that sounds like a public institution, e.g., Maine Police Department LLC.
• Reserve your name. You can reserve a business name for your corporation or a limited liability company for a $20 filing fee. The Maine Corporations Division will reserve your business name for 120 days from the filing date.
• Register an assumed name. If you want to use a different name from the one you registered with the state, file for an assumed name (known in most other states as a DBA, or “doing business as”). Assumed names must be unique and meet the state’s business name requirements. In Maine, municipal clerks, not the state, approve assumed name requests. Consult Maine’s Listing of Municipal Clerks & Registrars to find your clerk, and contact them to submit your municipality’s application.
• Secure a domain name and social media handles. Purchase a domain name (URL) and reserve social media usernames that align with your business name (or assumed name). Even if you’re not ready to use them, it protects your brand and makes it easier to find later.

3. Create a business plan

Your business plan lays the foundation for how your business will work—and how you plan to make money. It’s vital if you plan to raise capital from banks or investors. 

If you’re not sure where to start, use a template to organize your thoughts and review business plan examples if you get stuck. A solid business plan includes the following:

• Company description. Describe your mission and why you started your business. You may want to include your organizational structure and the product and service you offer.
• Market analysis. Show you understand your industry, customers, and competition. This section might include target market profiles and marketing strategies.
• Financial plan. List your startup costs, pricing strategy, and revenue goals. Break down how much you need to cover expenses and achieve profitability. 

Resources for business planning in Maine

Maine offers several resources to help entrepreneurs develop robust business plans:

• Maine Small Business Development Centers provide free one-on-one business advising services, including business plan review and development.
• SCORE Maine offers mentorship from experienced business professionals and workshops on business planning.
• Maine Technology Institute provides planning assistance for technology-based businesses.
• The Women’s Business Center at CEI offers specialized support for women entrepreneurs.

These organizations can help you refine your business concept, conduct market research specific to Maine demographics, and develop financial projections tailored to the state’s business environment.

4. Choose a business structure and register your business

Your legal structure affects how your business is taxed, who’s liable, and how you raise money. Themost popular small business structures are sole proprietorships, limited liability companies, and corporations. Here’s how they differ:

• Sole proprietorship. A sole proprietorship is the default designation if you start a business on your own. There’s no legal distinction between you and your business. You report all income on your personal tax returns and are personally liable for most debts or legal damages incurred by your business. A sole proprietorship works well if your business has little risk, low overhead, and no employees. You can always change your business structure later.
• Limited liability company (LLC). An LLC creates a separate entity from its owner(s), called members. LLCs protect your personal assets if the business takes on debt or faces litigation. LLCs in Maine are taxed as pass-through entities, meaning business income flows directly to members and are taxed once via individual income taxes. To register as an LLC in Maine, you must file a Certificate of Formation through the Bureau of Corporations, Elections, and Commissions for $175.
• Corporation (C corp or S corp). Corporations are the most formal business structure, providing the most liability protection. C corps can sell stock to raise more capital to get off the ground. Corporations enjoy the same personal liability protection as LLCs but face “double taxation” (taxes on business income and the personal income derived from the business). To avoid this, you can file Form 2553 with the IRS to become an S corporation, eliminating double taxation status.

Get a federal employer identification number (EIN)

A federal employer identification number (EIN) is like a Social Security number for your business. You’ll need an EIN to file permits and licenses, hire employees, open business bank accounts, and pay taxes. Apply for an EIN for free online through the IRS. (Note: Sole proprietors can use their Social Security number to pay taxes; you do not need an EIN.)

Incorporating in Maine

Registering your business in Maine differs slightly depending on your business structure. Sole proprietorships don’t need to register with the state. If you form an LLC or corporation, here’s what to file:

• LLC. To form an LLC in Maine, submit a Certificate of Formation to the Bureau of Corporations, Elections and Commissions for $175.
• Corporation. To incorporate in Maine, file Articles of Incorporation with the Bureau of Corporations, Elections, and Commissions for $145.

5. Obtain business licenses and permits

Maine doesn’t issue a statewide business license. Instead, general business licenses are administered at the municipal level.Contact your city or town office to find out what’s required.

You might also need to obtain business licenses depending on your industry. For example, if you operate in the restaurant, liquor, gaming, or agriculture industries, you likely need specific permits. The state provides various professions’ licensing information, applications, regulations, and resources.

If your business sells taxable goods or services, you’ll need to collect and pay sales or use taxes. Apply for a permit to remit taxes to the state through the Sales & Use, Withholding and Service Provider Tax Registration service.

6. Get business insurance in Maine

If you hire employees in Maine, you’re required to have workers’ compensation insurance. This policy helps cover medical expenses for work-related employee injuries. Employers must also pay for federal unemployment insurance taxes, which fund temporary benefit payments to laid-off workers.

You may also want to prepare for mishaps, disasters, or emergencies by purchasing additional policies that align with your business. Common types of business insurance include:

• Professional liability insurance. Professional liability insurance provides coverage for any damages due to claims of negligence or misconduct related to your services.
• General liability insurance. General liability insurance protects against customer or client injuries or property damage your business causes.
• Commercial property insurance. Commercial property insurance covers damage to your building, equipment, inventory, and assets due to theft, fire, or certain natural disasters.

7. Plan for startup costs and funding

Every business comes with upfront expenses. You might need to rent a brick-and-mortar storefront, pay for a professionally designed website and social media management, purchase equipment, license software, or hire professionals like lawyers or accountants. Consider what you’ll need to launch and how much it’ll cost.

There are several business financing options:

• Small business loans. Consider microloans, commercial bank loans, and Small Business Administration (SBA) guaranteed loans. 
• Alternative financing. Shopify Capital (available to Shopify merchants) lets you repay funds as a percent of your store’s daily sales, so payments flex with your business. 
• Personal savings or support from family and friends. An option if your startup costs are low.

Set up a business bank account early. It helps you track spending, separate business and personal finances, and manage cash flow.

8. Market your business

Marketing is attracting your target market to your business and figuring out what does and doesn’t work to convert them into customers. Develop a marketing plan to determine what tactics fit your business best. Start with:

• Paid advertising and promotion. Buy print or digital ads or hire an agency to craft them on your behalf.
• Social media. Social channels like Instagram, Facebook, YouTube, and TikTok can help promote your products and services and make it easier for customers to discover your brand.
• Public relations. Pitch your story to local and national media outlets. Cultivate relationships with journalists and publications to broaden your reach.
• New business and customer retention. Build relationships with your customers to keep them returning and spreading the word.

Once your marketing campaigns are live, track results. Look at which strategies are converting casual browsers into customers and which ones aren’t. Invest more time and money into marketing tactics that work.