Has anyone attempted to start an Assoc.

[REFVA]

I've been given the opprotunity from a number of rec leagues to start my own little association. Has anyone attempted to do this and does anyone know what are typical charges and term to include so you don't get any gotcha?

[Snake~eyes]

Where are you located?

[REFVA]

Northern Va.

[BayStateRef]

I've done it (on a very small level) and it is like starting and running any business. The "association" I started was created to train and assign officials for a rec program (boys and girls, grades 3-12). Most of the officials were high school kids that I recruited, but I also had some "regular" officials from my IAABO board. I was contracted (and paid) to run the program, so I had to negotiate fees, develop and run the training program, supervise the new officials and deal with lots of scheduling conflicts. I did not incorporate, have to deal with insurance or other business issues. The program director was very supportive, which made it a lot easier.

[Kelvin green]

I started and ran a softball group for about 5 years...

You have to make sure you have all the legalities covered.

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..

2)No matter what you will need an EIN from the IRS. Required to file and open bank accounts...

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.

4) Check out your state's workers comp laws some states require each contractor to either have a waiver certificate or carry it..

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).

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 (http://www.sportsplexoperators.com/insurancemain.asp)

[JRutledge]

Like just about everything else we talk about here, this can have a very local influence to the whole equation (Sorry Rocky but this is often true ). In my state you cannot start a local association without approval from IHSA and following their procedures to get one started. I guess you could start an association outside of the IHSA but you could not attend certain meetings, be given opportunities to recommend officials for post season or hold clinics that are recognized from the IHSA and help officials maintain their license with the IHSA. This would not help people where I live want to join your organization where I live.

Also associations around here do not typically assign games. Training and education are the main focus of associations in my state. A lot of what Kevin talked about does not have the same issues as it relates to IRS issues where I live. All most associations do is collect money and give back to their members or pay for fees associated with running the association. Usually this is done by holding clinics, paying clinicians, paying for meeting sites and socials. I know some organizations have tried to apply for none for profit status. In our state that can be difficult and you would have to discuss that with the local government to know for sure. With that all being said it is always smart to consult with a lawyer so that you do not violate laws you might fall under. The main point you need to consult with people and institutions where you are. I just know reading this site and others about how associations are run and function is very different from where I live and the issues that surround our associations. Assigning and associations are very different where I am, so if that is not the typical structure of an association where you live you would have very different issues to deal with. It also might help to figure out from other officials if there is a need for another official's association in your area. You will either be competing against other associations or having members be apart of your association and another association. There has to be something different about your association that makes officials want to be apart of your group and not another group. That could simply be the smallness of your group and the opportunities that might be greater by joining your group. There are a lot of things to consider.

Peace

[BayStateRef]

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.