There is no one simple answer to the cost of a business license in Maine. Business licensing in Maine is conducted at the town or city level, not by the state. Some municipalities charge nothing for obtaining the license, while others may charge as much as $100 or more annually. Ultimately, the cost is determined by the location of the business, its form of operation, and the nature of the work it is expected to perform.
All corporations and LLCs are required to pay filing fees to the Maine Bureau of Corporations; for example, the LLC fee is $175. Other required registrations (which are not licenses) include getting a sales & use tax certificate and an income tax withholding account, each as applicable to your business.
Certain professions and types of businesses are required to obtain additional permits and/or licenses. For example, food service and lodging businesses require a specific license, which typically costs between $100 and $300, depending on the size of the business. If alcohol is to be served, the liquor license must be separately filed for and can cost as much as several thousand dollars.
Professional licenses, such as those for law or medicine, are governed by the applicable state board of that profession and can be quite expensive. Such licenses may also include federal requirements and those may renew more frequently than the biennial renewal typically required for state licenses.
Whatever your business, operating without all required licenses can create serious legal liability, from fines to forced closures of your business. Additionally, having the right licenses can establish credibility in your community and with regulators, and can also enhance the resale value of your business should that become an issue.
Do you need a business license in the state of Maine?
Again, the answer is, “it depends” because there is no statewide, general Maine business license. If your business is located in a city like Portland or Bangor, you will need to obtain a local business license. If you’re a professional, you will need to obtain a license through the state board that governs your profession. Finally, if you’re in a federally regulated industry such as financial services, you’ll need those licenses — and probably related state licensing or registration as well.
How much does a business license cost in Maine?
There is no statewide license in general; however, LLCs and corporations are required to register with the state, at a cost of approximately $175.00. Local fees can range from free to several hundred dollars.
Factors that affect your costs include the location of your business, its nature, and the specific types of licenses you may need, such as professional, retail, liquor service, and others. Some cities do require an annual renewal of the license, generally with a fee similar to the original cost.
Types of Maine business licenses and their costs
First, since business licensing is local in Maine, the costs can vary considerably. For example, a simple local retail business may pay as little as $25, while a large regulated business may cost hundreds of dollars. Cities and towns that issue licenses tend to have tiered cost structures for them.
| Type of Business | License Type | Cost | Renewal Required |
|---|---|---|---|
| Simple Retail Business | City/town if needed | $25 to $500 | Varies |
| Professional Business | City/town if needed;State board license | RE Broker $100 initial and renewalRegistered Nurse $75 initial/renewalAttorney Annual dues vary; renewal $375Engineer $100-150 initial/renewal | Usually at the board level, usually biennial |
| Hospitality Industry | City/town if neededEating & Lodging LicenseLiquor LicenseVictualer’s license (local food service) | $100-$300 annuallyLiquor license from $220 to $2200 yearly$25–$150 annually | Yes |
| Highly Regulated Industry | City/town if neededLLC or Corporation notice Applicable federal or state licenses, such as broker-dealer, registered rep | State Firm $300FINRA membership up to $55,000, $7,500 for smaller firms; filing fee $175Agents $50 per year plus exam feesBranch fee $40 per Maine branch | Yes |
Renewing your business license in Maine
As you can see from the chart above, virtually all Maine business licenses require biennial renewal. However, if federal licensing is also involved in your highly regulated business, you should be aware that most of those licenses renew annually, and you’ll have to be on top of that business license cost. Generally, the renewal cost will be the same as the initial cost of the license or other registration.
There can be costs associated with renewing late. For example, a Maine insurance business that is a non-resident will incur a $25 late fee if paid within 90 days of the expiration date. After that, the firm must reapply as if it were applying for the license for the first time.
Most professional licenses in Maine impose a $50 late fee for filing within 90 days of the expiration date. Since the license is deemed expired during that gap, the professional technically may not practice his or her profession.
Conclusion
Starting a business in Maine can be challenging and time-consuming, especially if you aim to become anything more than a simple retail operation. Furthermore, in a state like Maine, where much of the activity occurs at local, professional, or external levels, determining what needs to be done can be especially challenging.
Pro Tip: Utilizing a professional service that provides guidance on the full range of business setup issues in Maine can save you money and stress over the long term.
FAQ
The most unusual aspect of Maine’s business licensing system is that, for the most part, standard business licenses are not issued by the state, but rather by local cities and towns. They can choose whether to require a business license and they can set the terms for getting an having a license.
You will need to obtain a Maine Use & Sales Tax Permit that allows you to collect and remit sales tax. If you only sell services, you probably don’t need this, but should check locally. TIP: Check with your local municipality to determine whether you need a business license from them.
When you get ready to open your business, check with the municipal officials where your business will be located. They will tell you if a license is required in that location and if so how to go about getting it.
Because licensing is local, time will vary from place to place. If other factors enter in, such as being in a federally highly regulated business, the process can take six months or a year.
The need for a business license for a Maine LLC will depend on local requirements. However, all LLCs are required to register with the state, as are corporations.
No. An LLC filing of Articles of Organization creates and defines the structure of your business with the state. It separates you from your business and provides liability protection. A business license is a grant of permission to operate a business in a particular locality.
Not getting a business license can result in fines, other penalties, and even a forced closure of your business. Moreover, depending on the nature of your business, operating without a license can subject you to lawsuits and, in some industries, even criminal penalties. Practically speaking, your taxes and any planned expansions will be much simpler if you have obtained your license.