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Maine Alliance for Road Associations

Just getting started - Road association

  • 01 May 2024 6:48 PM
    Quote
    Message # 13350953
    Anonymous member

    I live on a dirt road and with my neighbors we are attempting to create a road association to maintain our road year round. We followed many of the useful resources available on line. We created a steering committee, held informational meetings. Wrote up By-Laws, wrote a warrant with articles for the first meeting, sent registered copies to all land owners and have held the first successful meeting to create the road association including a road commissioner, secretary/treasure and board member. 

    Issue: next steps appear to be difficult. We can't figure out if we need an EIN number (in order to open a bank account under our name and pay for the work being done) if we don't employ anyone and make no money from the entity. 

    SO, here we are as new members of this Alliance. Can anyone offer us some detailed help? Thanks in advance. 

    Beth 
  • 02 May 2024 12:44 PM
    Quote
    Reply # 13351337 on 13350953
    Anonymous member (Administrator)

    Our bank required us to get an EIN number.  I don't know if all banks do, or if maybe a Credit Union would not?  Maybe someone else can answer that.  Once we had an EIN number, we thought that meant we had to file a tax form.  It turns out there isn't one specifically for road associations, so the IRS told us to use the one for Homeowners' Associations.  As it turned out, since all of the money we took in was going to be used to maintain the road, filling out the form was a matter of putting in total income and then filling out the same number on the line that asked how much of that amount was to be used for maintenance.  After doing that for a few years, we were told by other road associations that as long as all the funds will be used for road maintenance (and the related expenses allowed under the road association statutes,) that there is no need to file.  But I am neither an attorney nor a tax accountant, so you might want to get someone else to confirm that.
  • 02 May 2024 7:26 PM
    Quote
    Reply # 13351566 on 13350953
    Anonymous member

    How do I get the name registered so that I can obtain the EIN? 

    I see a form to register an Application to Reserve a Name - do I need to do this or is there a form to just apply for the name? 

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