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Maine Alliance for Road Associations

Being a statutory road association without being a nonprofit

  • 13 May 2025 5:04 PM
    Message # 13498721

    We are a large enough road association (80+ owners), that we require a board and bylaws. We originally registered as a nonprofit in the early 90s, but never did anything with it other than use it to get an EIN. We have since become a statutory road association. Looking through the pages of regulations concerning nonprofits and reading some of the discussions here, trying to handle both seems overly complicated and fraught with ways to make mistakes, just to maintain roads. If anyone has managed to get a bank account by being only a statutory road association, I would like to know how; I had a conversation with the bank and the IRS requires a tax ID for every account.

    I'm wondering if anyone here has considered suggesting a legislative change that would create another type of corporate entity called "statutory road association".

  • 14 May 2025 5:00 PM
    Reply # 13499251 on 13498721
    Anonymous member (Administrator)

    Our Statutory Road Association has an EIN, but I wasn't the one who got it so I can't tell you how it was gotten.  My impression was that they just had to file the correct application.

    There had previously been a non-profit, but it had failed for lack of participation, and when someone tried to resurrect it they discovered that there was an annual fee that was supposed to have been paid to the state, which had not been paid in several years.  Reinstating the non-profit would have required not only paying that year's fee and the fee for the missed years, but also a penalty for late payment.  We decided it was better to start fresh with just a Statutory Association.

                            The Maine Alliance for Road Associations


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