How to start a business in Maine in 14 steps (2025 Guide)

Maine has a bit of everything—charming coastal towns, large industrial cities, picturesque landscapes, and thriving tourism industries, particularly along the state’s rocky coast. For those looking to start the exciting process of launching a business, the news is even better. Not only does Maine have the classic New England lifestyle with an overall lower cost of living, but the state actively embraces small businesses. 

Why start a business in Maine in 2025? 

Small businesses are the backbone of Maine’s economy, with more than 150,000 small businesses accounting for 99.2% of all businesses in Maine. Whether you want to start a small tech company in Portland or a craft brewery in Bar Harbor, you can explore our comprehensive guide detailing how to start a business in Maine. 

Here are the topics we’ll cover in this step-by-step guide: 

• 14 steps to starting a business in Maine
• Step 1: Decide what type of industry is best for your business
• Step 2: Conduct industry research
• Step 3: Create a business plan
• Step 4: Choose your business entity: Types of business entities in Maine
• Step 5: Secure funds: Maine small business funding, loans, and grants
• Step 6: Choose your Maine business name and Maine DBA
• Step 7: Pick a business location in Maine
• Step 8: Find a Maine registered agent 
• Step 9: Get a Maine EIN and file your tax and employer identification documents 
• Step 10: Register as a small business in Maine 
• Step 11: Register for your business license and permits in Maine
• Step 12: Secure insurance for your Maine small business 
• Step 13: Prepare to pay taxes on your business in Maine
• Step 14: Set up your business bank account
• Additional resources to get your business started
• Frequently asked questions 

14 steps to starting a business in Maine

Whether you’re in the fishing industry or the educational technology sphere, opening a Maine business requires lots of planning and creativity before you get up and running. Let’s take it step by step and look at the essential moves you’ll need to make at every stage of the process.

Step 1. Decide what type of industry is best for your business 

You might already have an industry in mind that aligns with your skills and interests. However, you might also think outside the box to determine your community’s demand for products or services. 

If, for instance, you live in a coastal community like Rockland or Boothbay Harbor, you’ll need to look at the current offerings, whether it’s restaurants and marine-related businesses or professional services, and find a niche within your community. For instance, it could be offering tech assistance or accounting services to area fishermen. Check out some small business ideas for more inspiration that can help you build the business you want.

Step 2. Conduct research in your business’ industry

Next, you’ll want to refine your idea by delving deeper. Ask locals what services or products they wish they had access to, and check with your local chamber of commerce to help guide you to the necessary permits and licenses you’ll need in your area of Maine. 

A competitive analysis can be an especially important tool. Conducting a competitive analysis involves identifying your main competitors along with their strengths and weaknesses. With a thorough picture of your competition and potential opportunities, you’ll find it easier to shape your business in a direction that serves the needs of your market.

Step 3. Create a business plan

Your business plan will serve as your foundational guide as you secure funding and create goals for your Maine small business. From your core offerings to your marketing tactics, your business plan establishes the fundamentals of your business and sets you up for future success.

Typically, a business plan should contain some or all of the following:

• Executive summary: Briefly summarize your business concept and goals.
• Company description: Discuss the mission, history, and objectives of your new company.
• Market research and potential: Assess the current state of your target market and relevant trends.
• Competitive analysis: List your main competitors, plus how they match up with your business.
• Products and services: Establish which products and services your business will offer.
• Marketing and sales: Describe your strategies for reaching and retaining customers.
• Business financials: Include key financial projections, such as cash flow forecasts.
• Management and leadership: Note key leadership positions and duties in your business.
• Funding request: Outline your funding needs and develop a plan for raising and spending the funds.
• Appendix: Make sure to include supporting documents, such as market research data or financial statements.

A free business plan template can help you kickstart the process. For more state-specific information about creating your business plan, see this business plan guide from Maine Small Business Development Centers.

Step 4. Choose your business entity: Types of business entities in Maine

No matter your industry, you’ll need to choose a structure type for your entity. The structure of your business will determine everything from ownership to tax burdens to how you can secure funding. These are the most common small business types in Maine: 

Sole Proprietorship

A business owned and operated by one person, with no legal distinction between the owner and the business.

General Partnership

A business owned by two or more people who share profits, losses, and management responsibilities.

Corporation

A legal entity separate from its owners, with shareholders who have limited liability for the company's debts and obligations.

Limited Liability Company (LLC)

A hybrid business structure combining the limited liability of a corporation with the tax flexibility of a partnership. Learn more about LLCs.

Step 5. Secure funds: Maine small business funding, loans, and grants 

Whether you’re starting a craft brewery in Falmouth or a catering business out of your Cape Elizabeth home, you’ll need the funds to cover essentials like equipment, employees, fees, and more. Consider the following funding options:

Remember to also consider Maine-specific sources of funding, such as the following:

Maine Small Business Development Center (SBDC)

The SBDC provides support for any small business looking for advice or funding. Explore their site for resources on Maine angel investors, venture capital funds, economic development lenders, crowdfunding, and federal grants. 

Maine Community Foundation

The MaineCF awards grants based on industry and status. These include animal welfare funding, historic preservation funds, land acquisition grants, and Black, Indigenous, and People of Color grants. 

Step 6. Choose your Maine business name and Maine DBA

Select a Maine business name that’s unique, memorable, and reflects the offerings of your business. To start, perform a business entity search on the Maine Secretary of State’s website to ensure availability. If you plan to operate your business under a name that differs from your legal business name, you’ll need a DBA or “Doing Business As.” However, a Maine DBA is instead referred to as a “trade name” or “assumed name.” 

Reserve your business name

You’ll fill out an Application for Reservation of Name to reserve your business name and pay a $20 filing fee. 

Filing a trade name or assumed name (DBA)

In Maine, your assumed name must be unique and in compliance with the state’s naming regulation requirements. Corporations will file a Statement of Intention to Do Business Under an Assumed Name and pay a $125 filing fee; nonprofits will pay $25.

Step 7. Pick a business location in Maine

Maybe you’re locating your business in a small office on a marina or you plan to rent office space on a busy downtown street. The right location is a critical step impacting every aspect of your Maine business—from operational costs to safety and customer accessibility. 

If you’re within city limits, you may need to obtain permits or licenses to do business, so check with municipal and county clerks to ensure you meet location requirements. That’s especially true if you’re running a business from your home—while it’s potentially a great way to save on start-up costs, it’s also not legal for every type of business, so be sure to check first.

If you’re looking for commercial space in one of Maine’s bigger areas, here are a few things to keep in mind: 

Portland

• This tourism hot spot is home to a strong culinary scene, along with shops, lodging, and cultural attractions. 
• Portland has a young, educated workforce and a growing tech scene. 
• Commercial rent is high, so you may want to lean on shared workspaces. 

Lewiston

• Lewiston's proximity to southern Maine and New Hampshire allows access to a wider customer base.
• The industrial location is more affordable, and you may find opportunities in manufacturing, retail trades, health care, and business services. 

Step 8. Find a Maine registered agent

Any type of business in Maine requires a registered agent. In Maine, this person or professional service is also commonly referred to as a “commercial clerk” or “commercial registered agent.” Commercial clerks are responsible for accepting legal and government documents on behalf of your business. You or your business can also act as your own registered agent, provided you meet the below requirements: 

• Must have a physical address in Maine that’s not a P.O. Box
• Must be available during regular business hours
• Must be at least 18 years of age 

Perform an online search for a commercial clerk service, ask other business owners who they use as a registered agent, or appoint a trusted individual in your company. 

Step 9. Get a Maine EIN and file your tax and employer identification documents

An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify your business for tax purposes. Although Maine doesn't require a state EIN, you'll need one to file payroll taxes and federal tax returns, open a business bank account, and apply for loans. You can apply for a free EIN through the IRS website.

Step 10. Register as a small business in Maine

Next, you may need to register your small business through the Maine Secretary of State’s office. Here’s how to do that, according to your business entity type:

Step 11. Register for your business license and permits in Maine

Registering your business is one step, but ensuring you have the permits and licenses to operate legally is another. That’s because businesses in specific industries often require special licenses. 

For example, if you allow gambling on your premises, you’ll need to apply for a gaming license. Restaurants and hotels require licensing through the Division of Environmental and Community Health. If you’re selling tangible goods, you’ll need to apply for a sales tax license. And if you’re in a profession with a licensing or permitting board, you’ll be required to obtain the necessary licenses to operate. 

Do you need a business license in Maine?

While a general business license isn’t mandatory to start a new business in Maine, you may have to obtain a professional license, depending on your industry. You might also need to register for a local business license if the laws in your city or town require it.

Step 12. Secure insurance for your Maine small business

Hurricanes, bitter winds, and blizzards can shut down your business due to power outages, road closures, and property damage. In addition to weather, other mishaps such as theft, vandalism, car accidents, or injuries on the job can sink your Maine business if you don’t have insurance, so it’s critical to determine which types your business needs to stay protected. 

Types of small business insurance in Maine

Some types of insurance that are essential for many Maine businesses include:

Step 13. Prepare to pay taxes on your business in Maine 

When you outline your business concept, you’ll need to factor in your tax burden, whether you’re an LLC or a sole proprietor. State sales taxes, employee withholdings, and other tax situations, depending on your industry, can take a bite out of your revenue if you don’t plan for it, so get ahead of your tax obligations before you even open your doors to the public. These are some of the taxes that most businesses in Maine can expect to pay.

Corporate income tax

Maine has a graduated corporate income tax system, which means you’ll pay between 3.5 and 8.93% depending on your business’ income. 

Sales and use tax

Maine’s sales tax is 5.5%. There are no local sales taxes added. 

Withholding tax

If you have employees, you’ll have to withhold Social Security, Medicare, and federal and state income taxes from their paychecks. 

Other unique Maine tax situations 

• If you have a blueberry processing operation and you ship wild blueberries out of state, you’ll incur a blueberry tax at a rate of 1.5 cents per pound. 
• If you own more than 500 acres of commercial forest land, you’re subject to the commercial forestry excise tax, which accounts for forest fire prevention and management. 
• Any boat owner must pay a boat or watercraft excise tax to the local tax collector where the boat is docked or moored. 

Federal taxes

In addition to the above, your Maine business will also be required to pay federal taxes. These usually include:

• Federal income tax
• Self-employment tax (for sole proprietors and partners)
• Employment taxes (if you have employees), including the Federal Unemployment Tax Act (FUTA tax)
• Excise taxes (for certain industries)

To help you stay on top of your federal tax obligations, check out these IRS resources: Publication 334, Tax Guide for Small Business and Publication 583, Taxpayers Starting a Business and Keeping Records.

Tax credits and incentives for Maine employers

• Targeted business sectors can apply for Dirigo Business Incentives, which include a 10% capital investment credit and up to $2,000 per worker for training. 
• Business equipment tax relief programs reimburse portions of property taxes on qualified businesses and may offer tax exemptions. 
• The Maine Seed Capital Tax Credit Program offers state income tax credits for investors of Maine businesses. 

Learn more about credits and incentives via the Maine Office of Business Development.

Step 14. Set up your business bank account

Whether you’ve got a small software business in Portland or an adventure outfit in Bangor, you’ll need to keep your business finances separate from personal checking or savings. Here are some steps to take when organizing the finances for your Maine small business: 

1. Pull together any foundational paperwork you’ll need to open your small business bank account. This may include professional licenses and business formation documents. 
2. Do some research to find the bank or credit union that will best fit your business needs. A local credit union may provide you with more personalized service and lower fees than a traditional bank. If you plan to travel frequently, you may prefer the convenience of a national banking chain with ATMs located throughout the country. 
3. Establish credit by obtaining a business credit card and charging business-related expenses. 
4. Set up accounting software for yourself and any key employees to keep track of finances in real time. 
5. Hire a professional accountant or accounting service that can help you navigate taxes and create a solid financial picture of your company.

Additional resources to get your business started 

There are several state and federal resources that can support your business with guidance, training, potential funding and more. 

State resources

• Maine Small Business Development Center: New business owners will find a full range of useful resources at Maine SBDC, including business plan templates, financial counseling, and educational materials like webinars and e-courses.
• Finance Authority of Maine (FAME): Looking for more funding options for your Maine business? FAME is a state agency with the task of supporting business development in Maine, and business owners can apply for a variety of financing options through their programs.
• New Mainers Resource Center: This state organization offers resources aimed specifically at people who are relocating to Maine, including expert advice and financing for new Mainers who want to start a business.
• Northern Maine Development Commission: The NMDC provides funding options, business counseling, and other services for small businesses in Maine’s rural northern counties. 

Federal resources

• Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.
• Grants.gov: This centralized platform simplifies the process of searching for and applying for federal grants across various sectors. It also provides grant writing tips and has a Grants Learning Center featuring the basics of grants, eligibility, and more. 
• Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR): SBIR and STTR programs provide research and development funding to innovative tech companies. 
• SCORE: SCORE is a national nonprofit organization that partners with the U.S. Small Business Administration (SBA) to provide free mentoring and educational resources to entrepreneurs and small business owners. While not a direct federal agency, SCORE is an independent organization with a network of volunteer business mentors across the United States.
• U.S. Department of Agriculture (USDA): The USDA website lists grants, loans, and other programs and resources for farmers and other businesses serving rural America. 

Disclaimer: 

This content is for information purposes only and information provided should not be considered legal, accounting or tax advice or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. cannot warrant that the material contained herein will continue to be accurate, nor that it is completely free of errors when published. Readers should verify statements before relying on them.