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You have to make sure you have all the legalities covered.
Maybe. Or not. You really don't.
1) What type of business entity is it really, a true unincorporated association, a sole proprietorship, an LLC, or a corportation. It make a difference on how taxes get filed.
Keep it simple. You really don't need to incorporate in any form.
2)No matter what you will need an EIN from the IRS. Required to file and open bank accounts...
Not true. You can register as a "DBA" (doing business as) with your local government. It's cheap ($10/year here) and it is all you need to get a bank account. A copy of the DBA and your Social Security number is all the bank needs.
3) You will want to make sure all officials are contractors. Get the appropriate forms from them to get SSN's (W-9's I belive) HAve them sign a contract so they understand you will not cover them as employee.
Absolutely not. This is the wrong advice. The officals are not contractors or employees. They are independent contractors. Only if you pay any one of them more than $600 do you need to give them a 1099.
4) Check out your state's workers comp laws some states require each contractor to either have a waiver certificate or carry it..
No. No. No. They are not employees. You do not have to deal with workers comp.
5) Check out you unemployment laws, if you establish something like a corp you may end up filing UI every quarter (at least on your earnings).
Again...bad advice. They are not employees. They are independent contractors. No unemployment to deal with.
6) Depending on the type of entity you may need liability insurance and ensure each official has liability insurance. There are simple ways to do that including charging enough to insure the teams and then you may be able to tack on as an additional insured... If they are all NFHS officials you may be ok, contact their insurance administrators... You can alo insure your organization thru NASO and it it reasonable.. Because my softball group was independent I used Sportsples Operators and Developers )
I am not insured by my association. I am not insured by my assignors. I am an independent contractor. I do not see the need for insurance, but you can talk to your insurance agent about this. You certainly have some liability if you assign an official who does something "horrible." But if you have no assets, then you have no exposure.
You can make this as simple or complicated as you want. As I said...it is just like starting any new business. You decide how much you want to pay up front -- or whether you want to do it much simpler.
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