State Tax Overview: Maine
LLC Taxes and Sales Tax
Maine does not have a franchise tax for LLCs. Maine has an income tax that applies to LLCs based on income level. Sales tax of 5.5%-6.5% applies to goods and some services. Estimated tax payments are required if owing $1000+.
Tax-Exempt Goods
Goods subject to sales tax in Maine include furniture, home appliances, and motor vehicles. Groceries, prescription medicine, and gasoline are tax-exempt.
Tax Rankings and Property Tax
Maine ranked number 4 for states with the highest taxes as a portion of personal income. Property tax rates in Maine are above the U.S. average, with an average effective property tax rate of 1.30% while the national average is 1.07%. A typical resident pays $2,597 a year.
State Tax Overview: South Dakota
Corporation and Income Tax
South Dakota doesn’t charge a state or corporate income tax, making it a tax-friendly state.
Sales Tax and Business Environment
The state charges a 4.50% sales tax, with municipal governments adding additional local sales tax. Forbes named South Dakota the 5th best state to start a business, highlighting its low tax rates and financial accessibility.
Small Business Taxes and Tax Reduction for LLCs
Small businesses pay an average tax rate of 13.3%-26.9%, depending on the number of owners. By submitting Form 2553, an LLC can elect S-corp taxation to potentially reduce self-employment taxes once annual net income per member reaches $70,000.
Property Tax
Tax rates set by local governments apply to the full property value, with the state’s average property tax rate at 1.22%.