How to Dissolve an LLC in Maine | LLC Closing Guide

To dissolve a limited liability company one has to take up a set of required steps. In Maine, if you and the members of the LLC want to discontinue business, then it is necessary to dissolve their business legally to avoid any administrative and legal consequences. To dissolve an LLC in Maine, you are required to submit a complete Article of Dissolution to the Secretary of State. Before submitting the Article of Dissolution, one must follow the operating agreement.

Maine LLC Dissolution

If you have a Maine LLC (domestic or foreign) you must have an operating agreement. The first step towards the dissolution of Maine LLC is to follow the operating agreement. There are some points to be noted before proceeding with the official paperwork. At first, make sure all the members of the LLC are agreed to dissolve the business. Once all the members are ready, their consent should be recorded via voting. After casting their vote in favor of the dissolution, the legal process must be started. Here are the steps to address for dissolving Maine LLC.

How to Dissolve an LLC in Maine

Dissolution of Maine LLC requires three broad procedural steps. Having an Maine LLC Operating agreement, close all the tax accounts, and finally submit the Articles of Dissolution form to the Maine Secretary of State.

Step 1: Follow Your Maine LLC Operating Agreement

When you have started an LLC as a business entity, then there is an operating agreement that is formed. There are complete details of how the company will function and grow in that operating agreement, which acts as a comprehensive guide. There is also a dissolution process, which is added to your agreement. The common dissolution steps that almost every LLC follows are:-

First of all, the dissolution vote will take place among the LLC members in the dissolution meeting. If the majority is with the YES, then the process goes into legal proceedings.

  • All the dissolution votes will be noted down and recorded with the minutes of the meeting or a consent form.
  • After that, a formal date for dissolving the LLC will be decided.
  • The next step is counting the LLC assets and dividing them among the stakeholders and members accordingly.
  • Finally, the creditors of the business are notified, and the debts of the business are settled.

This is a general process. However, it is strongly recommended to seek professional help to avoid any complications when it comes to terminating an LLC.

Get a Professional Agent Service

When it comes to a limited liability company dissolution, it is important to get professional help. Maine registered agent will guide you with everything you need to close your limited liability company. While choosing a registered agent make sure they have a physical street address in the state. A professional service provider helps you to file the Article of Dissolution and close your various tax accounts without any hassle. Below are the best LLC services we strongly recommend for you.

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Step 2: Close All Tax Accounts

Every action that an official business takes is legally bound to some minimum business taxes. For that, various accounts, especially business entity tax account, are maintained by the state government with the help of various departments. You should consider all the taxes that you have paid for your LLC’s duration and make a list of them. 

You must contact all government entities and clear the amount of outstanding taxes due until the date you have decided for dissolution. All the taxes must be paid in advance so that you don’t face any issues in the further process of shutting down your LLC.

Some of the common taxes that limited liability companies have to pay are:

  • Unemployment insurance tax
  • Employee withholding tax if your LLC has employees.
  • If your LLC is engaged in selling taxable goods then they are liable to pay the sales and use tax.

Most of these taxes are normally filed, but some departments require official paperwork, without which it is impossible for the business to close their accounts. Apart from business taxes, federal taxes, personal income taxes, and franchise taxes are to be considered. For the franchise taxes, a franchise tax form is required.

That is why the LLC owner should go through the sales tax guide and hire an accounting service. If you want to do the accounting yourself or make accounting easy, try FreshBooks.

Tax clearance

While dissolving the Maine LLC, the owner does not require to obtain a tax clearance certificate. However, if you have filed federal taxes, then you must go through the final return option on your IRS form. 

The IRS form for the LLC that are classified as partnerships is form 1065, and those LLC’s who have registered themselves as corporate should check IRS form 1120.

Step 3: File Articles of Dissolution

There is a list of dissolution documents that you, as an LLC owner, have to file. Once these articles are filed, the legal existence of the LLC will be over. Like an Maine Certificate of Formation, one has to file Maine LLC Articles of Dissolution. The dissolution procedure and filing the articles of dissolution form is very easy and is discussed below.

  • First of all, the LLC owner(s) has to file the Article of Dissolution. There are multiple methods of filing available, such as file by mail, in-person drop, or/and online filing. To get the application form you need to visit the Secretary of State Website of Maine state.
  • You can follow the filing instruction on the official portal so that the steps for dissolution will be easier to complete.
  • In that particular SOS website, the LLC owner has to look for the Domestic LLC Articles of Dissolution page.
  • If you want to dissolve Maine Foreign LLC then look for the Foreign LLC Dissolution process.
  • There is a form available on this page, which is the article of dissolution you are looking for. You have to download that pdf form and start filling it.
  • You must fill in all the important and legal information in the form, so you should be extra careful.
  • After filling in all the important information, you must choose the mode of payment you want to use to pay the LLC dissolution filing fees.
  • After filling in every detail, one should submit the form through an official mail address and make a payment.
  • It takes 3-5 business days after filing of articles of dissolution if you are filing it by mail or in-person.

Mail to

Secretary of State
Division of Corporations, UCC and Commissions
101 State House Station
Augusta, ME 04333-0101

Filing Fee: $75

The LLC you owned is dissolved, and you are free from all the liabilities linked with the LLC and its taxes. A copy of both original articles and recorded articles should be submitted in front of the probate judge. Now it’s his call that he accepts your expedited dissolutions or not.

Points to Be Noted When Dissolving Maine LLC

Apart from these three steps, no major dissolution rules are there in Maine. However, there are some other tasks one has to keep in mind while dissolving an LLC legally.

Winding Up

There are some purposes of LLC that require some attention even after dissolution, known as winding up. The task of winding up includes.

  • For a certain period, the property of a business requires preservation.
  • If there is any civil case against the LLC, then the owner needs to finish them.
  • Settle all the existing disputes of LLC.
  • Transfer all the property of LLC to the names of partners.
  • Release all the liabilities that the LLC owes to others.
  • Rightful distribution of all the assets among members, according to their percentage of partnerships.

Cost of Dissolving LLC

LLC cost in Maine includes the formation as well as dissolution fees. To dissolve an LLC in Maine, LLCs have to file an Article of Dissolution. The filing fee is $75. The details are mentioned on the second page of the article dissolution filing form. Following are the ways to pay for the dissolution,

  • You can select a payment pick-up option.
  • There is an option of direct account transfer through your prepaid accounts.
  • LLC owners can also use their Credit cards, providing their complete details and types. Along with that, an original signature is required to authorize the transaction state will make.

After Dissolving Your LLC

After you formally dissolve your LLC, your business name will not be reserved anymore. Any other business entity will be eligible to use your Maine LLC name immediately after 120 days of dissolving your LLC. On the other hand, if you have a foreign LLC in other states, then you must comply with the SOS of the state after the dissolution of your LLC in Maine. A registered agent can help you do the needful.

Reasons Behind Dissolving Maine LLC

Maine has a lot of opportunities for an entrepreneur. But if they don’t take care of the business, they will get on the verge of dissolving it. There can be so many reasons for this, and they are all as essential as the other ones. Want to know why would someone get to the verge to dissolve an LLC in Maine? Here, check the following ones,

  • It can be because the company directors cannot get to the solution of an issue. 
  • If the company cannot get better outcomes from the company, it is bound to shut down. 
  • People want profits, and if the company is regularly getting into debt, it is not good to keep the company going. 

Top Businesses in Maine!

It is a great idea to start an LLC in Maine. But if someone is doing it without proper info, then they are doing it wrong. With the help of the facts and figures, it will be possible for the person to know what to do. But the research indeed takes a lot of time. So here, we have done it already for you!

  1. Finance: It is an essential sector of a lot of states. But when it is about Maine, then the industry is contributing the most to the economy. With the help of this industry, people are getting jobs, but they are also getting more money. It contributed about $11.53 billion in the GDP and induced growth too. 
  2. Health care: Health care tends to be a vital industry these days as what it has in treasure keeps a check on the future. It is an industry that comes on the second of the list in the contribution to GDP. The amount totaled to be $8.03 billion, and it is a combination of social assistance and educational services. 
  3. Government enterprises: People tend to use government services a lot too. They can provide the services at a better price and in good quality too. But even with that, they have made an enormous contribution to the GDP too. The contribution is more than what private or other personal services are providing to the economy. They contributed $6.83 to the GDP, whereas government services contributed $7.69 billion.

Maine LLC Dissolution Review

Time needed: 5 minutes.

Here’s a recap of the steps you must follow when dissolving your Maine LLC. Click on the steps in this list if you want to read the full detail.

  1. Follow Your Maine LLC Operating Agreement

    Remember that when you started, you created an operating agreement. Use this agreement as a guide in proceeding with the dissolution of your LLC.

  2. Close All Tax Accounts

    Make sure you close all your tax accounts to avoid incurring further costs.

  3. File Articles of Dissolution

    File the article of dissolution to make it known to the state where your LLC operates is that you are indeed no longer in business.

What is the Cost to Dissolve an LLC in Maine

The cost to dissolve an LLC in Maine varies greatly depending on the circumstances. The process is generally expedited, but there are certain costs to expect as well. The filing fee for dissolution is typically $50. There are also special options for quick dissolution, such as 24-hour processing and instant dissolution. In some cases, the fee may be even higher, but it is well worth it if you’re ready to close your business for good.

The cost to dissolve an LLC in Maine varies, and may include fees, which can range anywhere from $500 to $1500. The process can be complicated, but it’s worth it for the peace of mind that you’ll get in the end. Here’s how it works: After the filing fee is paid, you’ll receive a notice of your dissolution and be free to sell your strawberries in St. Barth.

The SOS will require you to file an annual report. An LLC that fails to file an annual report will be charged a $50 late fee. If the business doesn’t pay its fees or fails to file its annual report, the SOS will notify you that the business is dissolving. You’ll also be notified about the administrative dissolution, which will be effective soon. During this time, you’ll have to pay the dissolution fees.


Is there any filing fee the LLC owner has to pay for dissolving their LLC?

Yes, in Maine, there is a fee of $75 to be paid for filing the Articles of Dissolution. Articles of Dissolution must be submitted to the Maine SOS.

Is the revenue department clearance required for dissolution?

No requirement of revenue department clearance is required until the SOS of Maine accepts the dissolution form.

Can someone else take the name I use for my LLC?

The name will also get deregistered with the dissolution of the LLC. But the name will not be allotted for the next 120 days. After that, if some business wants to name their LLC after the name chosen by you, then it is their choice.

Are there any financial penalties if I don’t dissolve my LLC legally and miss the reports?

If you have not dissolved your LLC, you are liable for business privilege tax, and if it is not paid on time, you are leveraged with 10% of the amount of tax or $50. After that, the additional penalties will increase by $1 per month. If it goes unpaid for a longer duration, then the chances of seizing your property can also recover the tax.

Are there any fees for the probate judge who is taking the dissolution decisions?

Yes, if you are dissolving your LLC, you have to pay some amount to the probate judge who was also present during your LLC formation in the probate office. The minimum fee of the judge is $50, which can vary.

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