Corporations, LLC's and Business Law
When starting a business, you may elect to operate as a sole proprietor,
a corporation, a Limited Liability
Company (LLC), or other business entity. Corporations and LLC's
provide important benefits in protecting personal assets from the reach
of creditors. These entities may also provide a significant tax advantage
for your business.
We work with tax professionals to assist our clients in determining
which form of entity is best suited for the client's circumstances. We
then prepare documents for the transition to the new business entity,
assist with initial and annual meetings, and mandatory annual reports
filed with the Maine Secretary of State.
A Maine corporation is a legal entity established by an individual or
group of individuals under the laws of the State of Maine. When a corporation
is properly formed and maintained, it can protect stockholders from claims
of parties who did not receive personal guaranties from the stockholders
in the event the business fails. A properly formed corporation generally
limits the liability of stockholders to the amount of money or property
invested in the enterprise.
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Limited Liability Company (LLC)
In this flexible and relatively new form of business entity, the LLC
combines the tax advantages of a partnership with the limited liability
accorded to corporate shareholders.
Owners of an LLC are called members, not shareholders. Members may include
individuals, corporations, and even other LLCs. Maine law permits single
member LLCs or those having only one owner.
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A partnership is an association of two or more persons who carry on,
as co-owners, a business or other enterprise. These individuals are responsible
for the business, including all liability and any profit or loss. Although
the LLC has superseded partnerships as the preferred entity form, there
may be instances when a general partnership or limited partnership may
be more appropriate. Contact us to learn
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There are many reasons why a nonprofit group should seek nonprofit corporate
- It allows the group to obtain exemptions from federal and state income
taxes. The most common federal tax exemption for nonprofits comes
from Section 501, Section c, Section 3 of the Internal Revenue Code,
which is why nonprofits are sometimes called 501(c)(3) corporations.
If your group obtains tax-exempt status, not only is it free from paying
taxes from all income but people and organizations that donate to the
nonprofit can take a tax deduction for their contribution.
- It protects the directors, officers, and members of the nonprofit
from personal liability for the corporation's debts and obligations.
- It is often a requirement for obtaining funds from government agencies
and private foundations.
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Maine corporations and
LLC's must file an annual report
with the Office of the Maine Secretary of State by June 1st of
each year in order to retain their good standing to do business
For more information, click
Maine Condominium Associations and other non-profit homeowner
associations must maintain their records annually with the Maine
Secretary of State.
Do you jointly own property with another individual that is not
your spouse? A carefully drafted Partnership or
Co-ownership Agreement can avoid costly litigation if there is
ever a parting of the ways.
Choosing between an LLC and S Corp? Let us help you determine
what will best suit your needs.
Contrary to popular impression, it is not expensive or time consuming
to operate your business as a corporation or LLC.
Contact us to review the costs and
Is your business, Corporation,
or LLC in good standing
with the Maine Secretary of State? Are you holding an annual meeting?
Are you keeping your company minute book updated? Let us assist
you with this annual task so that you can get back to business. Contact
us for more information.
"Thank you for all of your hard work, patience, and help.
Our dream of a new and permanent home has been realized."
- A. Johnson-Graffe and Brixham Montessori Friends School
We serve the following communities in Southern York County Maine: York Beach, York, Kittery, Kittery Point, Wells, Eliot, South Berwick, North Berwick, Berwick, Kennebunk, Kennebunkport, Sanford, Biddeford.
The information presented on this website does not constitute legal advice and is intended for marketing purposes only.