Maine lesson 5 of 6
Maine LLC taxes, licences and permits
Maine has no LLC franchise tax. Members of a pass-through LLC pay Maine's graduated individual income tax on their share of profit, and businesses that sell taxable goods or services collect the state's sales and use tax.
How members are taxed
A Maine LLC taxed as a partnership or sole proprietorship for federal purposes passes income through to its members, who report their share on a Maine individual return and pay the state's graduated income tax, which tops out at 7.15% for higher earners. An LLC that elects C corporation tax treatment instead pays Maine's graduated corporate income tax, which ranges from 3.5% to 8.93% depending on taxable income.
Confirm the current bracket thresholds each year on the Maine Revenue Services individual income tax page, since they are adjusted for inflation annually.
Sales tax and licensing
Maine's general sales tax rate is 5.5%, with higher rates of 8% on prepared food and 9% on lodging rentals. If you sell taxable goods or certain taxable services, register with Maine Revenue Services before you start selling.
Maine has no single statewide general business licence. Depending on your industry, you may need a state board licence, and depending on your town, a local business or occupancy permit.
Key takeaways
- Maine's individual income tax on pass-through profit is graduated up to 7.15%.
- There is no LLC franchise tax; a C-Corp election instead pays Maine's 3.5% to 8.93% graduated corporate income tax.
- The general sales tax rate is 5.5%, with special rates for prepared food and lodging.
Frequently asked questions
Does Maine have a franchise tax on LLCs?
No. Maine does not levy a franchise or annual privilege tax on LLCs. Only a C-Corp election pays the state's graduated corporate income tax.
Is there a statewide business licence in Maine?
No single statewide licence covers every business. Check with the relevant state licensing board for your industry and with your town or city for local permits.
Official sources
Or let us file your Maine LLC for you
Everything above is yours to use for free. If you would rather hand it over, we prepare and file the Certificate of Formation (Form MLLC-6), act as your registered agent, and track your ongoing deadlines.
Last reviewed: September 2026 - reviewed by Gullia Filing Legal & Formation Team