StructureCost2026

Maine: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $4,385 a year less than a sole proprietorship in Maine. All figures are 2026 tax and fees.

$4,385 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Maine, at these numbers. That includes the state's pass-through entity tax election.

More settings revenue, salary, filing status, payroll costs, PTET

Maine, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $26,989 $0
Itemized: $26,989
Self-employment taxirs.gov, 2026 rates$14,130
Federal income taxirs.gov, 2026 rates$8,235
State income taxmaine.gov, checked Oct 20, 2026$4,624
Yearly cost$26,989
Single-member LLC $27,042 +$53 $175
Itemized: $27,042
Annual Reportmaine.gov, checked Oct 20, 2026$85
Self-employment taxirs.gov, 2026 rates$14,118
Federal income taxirs.gov, 2026 rates$8,221
State income taxmaine.gov, checked Oct 20, 2026$4,618
Yearly cost$27,042
LLC taxed as an S corp lowest $22,604 −$4,385 $175
Itemized: $22,604
Annual Reportmaine.gov, checked Oct 20, 2026$85
Payroll tax on your salaryirs.gov, 2026 rates$6,467
State disability and paid leavelegislature.maine.gov, checked Oct 20, 2026$200
Payroll service and tax return (estimate)$1,800
Maine pass-through entity tax, paid by the company (elected)maine.gov, checked Oct 20, 2026$3,912
Federal income taxirs.gov, 2026 rates$8,910
State income tax, after the PTET creditmaine.gov, checked Oct 20, 2026$1,230
Yearly cost$22,604
S corporation $22,604 −$4,385 $145
Itemized: $22,604
Annual Reportmaine.gov, checked Oct 20, 2026$85
Payroll tax on your salaryirs.gov, 2026 rates$6,467
State disability and paid leavelegislature.maine.gov, checked Oct 20, 2026$200
Payroll service and tax return (estimate)$1,800
Maine pass-through entity tax, paid by the company (elected)maine.gov, checked Oct 20, 2026$3,912
Federal income taxirs.gov, 2026 rates$8,910
State income tax, after the PTET creditmaine.gov, checked Oct 20, 2026$1,230
Yearly cost$22,604
C corporation $30,554 +$3,565 $145
Itemized: $30,554
Annual Reportmaine.gov, checked Oct 20, 2026$85
Payroll tax on your salaryirs.gov, 2026 rates$6,467
State disability and paid leavelegislature.maine.gov, checked Oct 20, 2026$200
Payroll service and tax return (estimate)$2,000
State corporate income taxmaine.gov, checked Oct 20, 2026$1,908
Federal corporate income tax (21%)irs.gov, 2026 rates$11,046
Federal income taxirs.gov, 2026 rates$5,021
State income taxmaine.gov, checked Oct 20, 2026$3,827
Yearly cost$30,554
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Maine

Electing S corp tax treatment for an LLC starts to pay in Maine at about $52,500 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in Maine can elect to pay the state's income tax itself, a pass-through entity tax of 7.15%, and the owner gets a credit for it. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totalmaine.gov.

ProfitSole propLLCLLC as S corpC corp
$30,000$5,580$5,642$7,255$7,677
$50,000$11,209$11,271$11,296$13,419
$75,000$18,522$18,582$15,356$20,583
$100,000$26,989$27,042$22,604$30,554
$150,000$45,553$45,606$38,486$52,100
$200,000$64,699$64,760$55,190$72,846
$300,000$109,080$109,109$90,787$115,811

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Maine

LLCCorporation
Filing to form$175Certificate of Formation (MLLC-6)$145Articles of Incorporation (MBCA-6)maine.gov
Yearly reportAnnual Report, $85 a yearAnnual Report, $85 a yearmaine.gov
Report dueJune 1 (first report due the year after formation)June 1 (first report due the year after incorporation)

Not in the calculator: Maine has no local income or gross receipts taxes; municipalities levy property tax, including on business personal property (partly reimbursed through the BETR/BETE programs).

Switching calculators for Maine

By profession in Maine

Questions

Is an S corp worth it in Maine?

On these figures, from about $52,500 of profit. At $100,000 an LLC taxed as an S corp costs $22,604 a year against $27,042 for a plain LLC, $4,438 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Maine?

The state charges Annual Report, $85 a year. Forming one costs $175.

Does Maine recognise the S corp election?

Yes. The federal election carries over with no separate state form. Maine follows the federal S election; S corps owe Maine corporate tax only on income taxed federally at the entity level (for example built-in gains).

What income tax does Maine charge?

Maine taxes personal income in 4 brackets, from 5.8% to 9.15% (2026, single filer). C corporations pay 3.5% to 8.93% of net income.

Sources checked 2026-10-20. Each figure links to the state or IRS page it comes from.

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