Are You Doing Business in Maine with a Delaware Company?
When it comes to incorporating a business, Delaware has been the popular choice for many years due to the strength of Delaware’s law structure. Delaware is known to give the best liability protection to the members of the company. Clients from all over the world choose Delaware to form an LLC or Corporation regardless of where they will actually be operating.
When incorporating a Delaware LLC or Corporation, your company is domestic to Delaware and foreign to every other State. The process by which your foreign state gives you the authority to use your Delaware Company is called foreign qualification. This blog will focus on Delaware companies that operate in Maine.
Maine, like many other states has an application process, a state fee, and also requires a Certificate of Good Standing from Delaware in order to foreign qualify in that state. They require that a physical location in Maine be listed as the Registered Agent of record. To foreign qualify in Maine, clients work with their Delaware Registered Agent to prepare the paperwork. Harvard Business Services, home of the $50/year Registered Agent fee, assists clients with the foreign qualification process every day. You do not have to be a current client for the Delaware service in order to get assistance with foreign qualification. Harvard prepares the paperwork, obtains the Certificate of Good Standing from Delaware, and sends an electronic package to the client for signature. We can also act as the Maine Registered Agent for $99/year. The turnaround time for the Maine Foreign Qualification approval is often about 10-15 business days.
Once Registered in Maine, you receive a Certificate of Authority to be able to do business there using your Delaware Company. Please keep in mind that to remain in Good Standing, the Delaware Franchise Taxes and Registered Agent fees must be paid in addition to the Maine compliance fees. It is the job of the Registered Agent to keep you posted of annual compliance matters to remain in Good Standing.
If you would like assistance registering your Delaware LLC or Corporation to do business in Maine, or if you have questions, please contact Harvard Business Services at 1-800-345-2677 ext. 1 or email devin@delawareinc.com.
*Disclaimer*: Harvard Business Services, Inc. is neither a law firm nor an accounting firm and, even in cases where the author is an attorney, or a tax professional, nothing in this article constitutes legal or tax advice. This article provides general commentary on, and analysis of, the subject addressed. We strongly advise that you consult an attorney or tax professional to receive legal or tax guidance tailored to your specific circumstances. Any action taken or not taken based on this article is at your own risk. If an article cites or provides a link to third-party sources or websites, Harvard Business Services, Inc. is not responsible for and makes no representations regarding such source’s content or accuracy. Opinions expressed in this article do not necessarily reflect those of Harvard Business Services, Inc.