How to Start a Nonprofit in Maine

The Pine Tree State is the northernmost state in New England. It is known for its rugged, rocky coastline, picturesque, forested inland, and seafood, such as clams and lobster. Maine is one of the most sparsely populated states in the United States, which combined with stunning natural beauty, make it a popular place to vacation.The nonprofit sector makes a big impact in the Pine Tree State’s economy. Employing over 84,000 people—9% of the state’s workforce,—Maine’s 8,500 nonprofit organizations generate in excess of $12.4B in annual revenue. (Source: Independent Sector.)Starting a nonprofit in the Maine is a three step process.

1. Form your board of directors.
2. Reserve your name.
3. Create your corporation.

Step #1: Your Maine Nonprofit Board of Directors

This step is not required to file a non-profit incorporation in the state of Maine, but you will need it when you file for your IRS tax exemption, and on the Maine application you have to list how many directors make up your board, which implies you know who they are.You have to form the board soon so we suggest starting on the right foot and getting your board set up now.The board of directors officially controls the nonprofit and has overall decision-making power. The board can appoint another person (or multiple people) to run the nonprofit on a day-to-day basis but this is not required to get started.A minimum of three people are required in Maine to fill the roles of President, Treasurer, and Secretary. You won’t need to collect Social Security Numbers for your directors but you will need a valid physical address.Once you’ve formed your board, you can move on to the next step.

Step #2: Reserve Your Nonprofit Name

Setting up your Maine nonprofit corporation takes 5 - 10 days unless there is an issue with your application, in which case it can become quite open-ended. One of the most common stumbling blocks is when the name you have chosen is not considered distinct enough. This will cause the secretary of state’s office to reject your application.Although it is not strictly required to reserve the name of your corporation first, we recommend it because it eliminates one of the most common reasons for rejection.Name reservation in Maine costs $5 and you can find the correct form on the Maine Secretary of State website.

Step #3: File Your Articles of Incorporation

Articles of Incorporation is the form you’ll use to create your Maine nonprofit corporation. The form is also available of the secretary of state’s website, costs $40, and takes 5 - 10 business days for a normal application. You can also expedite your application for a $50 or $100 fee depending on how fast you need the corporation created.You will be notified of the results of your application via mail.

A Faster, Easy Way to Start Your Nonprofit in Maine

Now you have your Maine nonprofit corporation, you can use your state information and federal EIN to open a bank account for your nonprofit. However, setting up your nonprofit in Maine is just part of the process of becoming a formal tax-exempt organization. The next step is to file for a federal tax exemption using either IRS form 1023 or 1023-EZ.The average nonprofit takes 100+ hours of time and often several thousand dollars in professional fees to create. In the past, you were faced with locating, understanding, and filing the forms yourself or hiring an expensive attorney who likely doesn’t specialize in nonprofits.ExemptMeNow is the only secure, fully automated, online platform for creating your Maine Nonprofit Corporation.