For many entrepreneurs, a key step in building a professional identity is using a business name that’s different from their own legal name. This is where an “assumed name,” as it’s called in Maine, comes into play.
Registering an assumed name allows a business to operate under a specific brand without having to form a new legal entity. In Maine, the use of an assumed name is governed by state law to ensure public transparency.
The law requires any person or entity conducting business in the state under a name other than their legal name to file a certificate. This practice allows consumers and other businesses to easily identify the legal owners behind a given enterprise.
This guide will walk you through the process, costs, and key requirements for filing an assumed name in Maine. A notable aspect of Maine’s procedure is that filings are handled at both the state and local levels, depending on your business structure.
What Is an Assumed Name in Maine?
An assumed name or DBA in Maine is any business name that differs from the legal name of the individual or entity that owns it. For example, if a sole proprietor named Sarah Chen starts a design studio called “Pine Tree Designs,” she would need to file “Pine Tree Designs” as an assumed name.
It’s important to understand that an assumed name is not a legal entity itself. It doesn’t provide the liability protection that comes with forming an LLC or a corporation. Its primary purpose is to serve as a registered name for branding, marketing, and transactional activities.
You must file an assumed name in Maine if you:
- Want to build a brand: Using an assumed name allows you to establish a more professional and memorable brand identity.
- Run multiple ventures: A single LLC or corporation can file multiple assumed names to manage different brands or product lines under one legal umbrella.
- Need to open a business bank account: Many banks require proof of an assumed name filing to open a business bank account under that specific name.
DBA Filing Process in Maine
The process for registering an assumed name in Maine is handled by two different authorities, depending on your business structure: the Maine Secretary of State for formal entities and the local city or town clerk for sole proprietorships and partnerships.
Step 1: Check for Name Availability
Before you begin, it’s crucial to check if your desired assumed name is available. You can conduct a name search on the Maine Secretary of State’s corporate name database to see if the name is already in use by a registered business entity. This step helps prevent potential legal conflicts and ensures your filing will be accepted.
Step 2: Complete the Application
The form you need to complete depends on your business structure.
- Formal Entities (LLCs, Corporations): You will file a Statement of Intention to Transact Business Under an Assumed or Fictitious Name (Form M.R.S.A. § 310) with the Maine Secretary of State.
- Sole Proprietors and Partnerships: You will file a similar certificate directly with the clerk of the city or town where your business is located.
Step 3: File the Application and Pay the Fee
The filing fees vary based on where you file.
- For formal entities: The filing fee with the Secretary of State is $125. You can file online or by mail.
- For sole proprietors/partnerships: The filing fee is determined by your local city or town clerk and is typically much lower, often between $10 and $20.
Note on Publication: Unlike in some of the US states, Maine doesn’t have a statewide requirement to publish a notice of your assumed name in a newspaper. This simplifies the filing process and eliminates an additional expense for your business.
Costs and Timelines for a DBA in Maine
Filing a DBA in Maine involves a clear fee structure and predictable processing times.
- Filing Fees: The cost varies by business structure and location. For formal entities, the state fee is $125. For sole proprietors and partnerships, the local fee is typically $10 to $20.
- Processing Times: Applications filed with the state are generally processed within a few business days. Local filings are often processed more quickly.
- Renewal: An assumed name registration for a sole proprietorship or partnership in Maine is valid for a specific period, typically a few years, and must be renewed to remain in effect. Formal business entity names are renewed annually with the company’s annual report.
Maintaining or Canceling Your Assumed Name in Maine
Maine’s rules for managing an assumed name registration are straightforward and handled at either the state or local level, depending on your initial filing.
Renewal
Unlike Pennsylvania’s perpetual system, in Maine, assumed name registration is not permanent. The duration of its validity depends on where you filed:
- State-Level: For LLCs and corporations, the assumed name is renewed annually with the company’s regular annual report.
- Local-Level: For sole proprietors and partnerships, the registration is valid for a specific period, often a few years, as determined by the city or town clerk. You must contact the local clerk’s office to find out the exact renewal timeline and fee.
Cancellation or Withdrawal
If you no longer wish to use your assumed name, you can officially withdraw it. The process depends on where the initial filing took place:
- For Formal Entities (State-level): You can file a withdrawal form with the Maine Secretary of State. The form is titled Statement of Withdrawal of Assumed or Fictitious Name and can be filed online or by mail.
- For Sole Proprietors and Partnerships (Local-level): You must file a withdrawal or cancellation form directly with your city or town clerk. The form and any associated fee will vary by municipality.
While not legally required in every case, canceling your registration is a good practice to keep public records accurate and avoid potential confusion.
Common Mistakes to Avoid When Registering a DBA in Maine
Filing a DBA (Doing Business As) in Maine is generally a simple process, but a few key details can cause issues if overlooked. Here are the most common mistakes to steer clear of:
- Confusing State and Local Filing: A common error is filing with the wrong authority. Sole proprietors and partnerships must file with their local city or town clerk, not the Secretary of State. Conversely, LLCs and corporations must file with the Secretary of State. Filing with the wrong office will lead to a rejection and delays.
- Mistaking a DBA for a Legal Entity: A DBA is purely for branding and public transparency. It doesn’t create a separate legal entity or provide any personal liability protection. To shield your personal assets from business debts and lawsuits, you must form a formal structure like an LLC or a corporation.
- Assuming the Registration Grants Trademark Protection: A DBA registration in Maine provides notice of your business name within the state, but it doesn’t grant you exclusive, nationwide rights to that name. For broader protection against trademark infringement, you should consider filing with the U.S. Patent and Trademark Office (USPTO).
- Not Checking Name Availability: While a DBA is not a legal entity, the state and local clerks will still reject your application if your desired name is too similar to an existing one. Always perform a name search on the Secretary of State’s database before you file to avoid a rejection.
- Forgetting to Renew Local Filings: Unlike Pennsylvania’s perpetual system, local DBA registrations in Maine expire. The validity period varies by municipality, so it’s your responsibility to know your local renewal timeline to avoid your registration lapsing.
FAQs About Filing a DBA in Maine
Filing a DBA in Maine has a clear process, though it varies depending on your business type. Here are answers to some of the most common questions entrepreneurs ask:
Do I Need a DBA If I Already Have an LLC?
Yes. You are required to file a DBA (referred to as an assumed name) with the Secretary of State if your LLC operates under a name different from its official legal name. This ensures public transparency and is often required to open a business bank account under an assumed name.
Can I File a DBA Online in Maine?
Yes. If you’re a formal entity (LLC or corporation), you can file your DBA online with the Maine Secretary of State. Sole proprietors and partnerships must file in person or by mail with their local city or town clerk.
How Long Does a DBA Approval Take?
State-level filings are typically processed within a few business days. Local filings are often processed more quickly. A key advantage in Maine is that there’s no publication requirement, which streamlines the process.
How Long Is a DBA Valid in Maine?
A DBA registration in Maine is not permanent. The duration depends on your business structure:
- LLCs and Corporations: The DBA is valid as long as the legal entity is in good standing and files its annual report.
- Sole Proprietors and Partnerships: The registration’s validity and renewal timeline are determined by the local municipality and can range from one to several years.
Can a Single Business Have Multiple DBAs?
Yes, a single business entity can register multiple DBAs to operate different brands or product lines. Each DBA requires a separate filing with the appropriate authority (state or local) and a separate fee.
Final Takeaway
Registering a DBA in Maine is a legal requirement that allows you to operate under a different name, which is crucial for branding and public transparency. The state’s decentralized filing system for sole proprietors and partnerships, and the lack of a publication requirement, are unique aspects of the process.
Whether you’re a sole proprietor, an LLC launching a new brand, or a partnership, filing a DBA is a simple way to meet a legal obligation and establish a professional presence in the Pine Tree State. Just be sure to file with the correct authority and stay on top of any local renewal requirements.
