Forming a limited liability company (LLC) in Maine offers limited liability protection and pass-through taxation. An LLC can be managed by either the members or by managers.
The LLC allows for pass-through taxation as its income is not taxed at the entity level; however, a tax return for the LLC must be completed. Any income or loss of the LLC as shown on this return is passed through to the owner(s). The owners, also called members, must then report the income or loss on their personal tax returns and pay any necessary tax.
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