Employer Identification Number
If you are choosing to be independent you need to apply for an Employer Identification Number (EIN). Even if you hire someone else or contract with the county to handle payroll you are ultimately responsible for your employees and for payroll. In fact payroll will have its own chapter. For now apply for an EIN. This should be the first thing you do.
If you are an existing library you might already have an EIN - however if you have changed your name you need to apply for a new one. So how do you do that? Visit the IRS website at http://www.irs.gov and search for Employer Identification Number. Chances are that a link to "Apply for EIN online" will appear on the front page. It's relatively straightforward.
The IRS will ask for a responsible party when you are completing the EIN form. This section is confusing because it asks for either an individual or an existing entity. The IRS recognizes that libraries are run by library boards with several members, but the agency wants you to select one person to list as a responsible party. The ideal would be for the board chair or another board member to be this person. When the board member leaves you can update the responsible party information when you file your annual 990 form.
ASPeN: The New Library Directory
- Home
- Introduction
- Challenges of being a library district
- Joys of being a library district
- Contact Us
- Getting Started - Helpful Hints
- Develop an Action Plan
- Work/Life Balance
- Celebrate Your Successes
- Getting Started Checklist
- Working with the city and county during the transition
- County Actions
- City Actions
- Memorandums of Agreement
- Independent or with County
- City/County Transitions Checklist
- Paperwork, paperwork, paperwork!
- Employer Identification Number
- Name Change
- Notify Department of Administration
- Create List of Contacts
- Paperwork Checklist
- Accounting and other money matters
- Funding during the transition phase
- Decide how to handle accounting
- Paperwork and other details
- Transfer of cash and other liquid assets
- Develop agreements with the Friends and Foundation
- Funding for the First Year
- Accounting Checklist
- Payroll and Personnel
- Initial Decisions
- Take a class
- Notify Revenue Departments - State and Federal
- Personnel
- A note about independent contractors
- Payroll
- Payroll and Personnel Checklist
- Property and other assets
- Transfer Assets
- Obtain Insurance
- Maintenance, Repair, and Utility Costs
- Depreciation of Assets
- Assets Checklist
- The Library Board and its Duties
- Create and adopt an action plan
- Support library staff
- Adopt bylaws for the board
- Hire legal counsel
- Purchase errors and omissions insurance
- Begin work on a long range plan
- Begin adopting policies
- Adopt resolutions and a budget
- Election of board members
- Board Checklist
- Public relations and library services
- Keep the public informed
- Design a new logo and look
- Plan for new services
- Public Relations Checklist
- Reporting Requirements
- IRS Reporting
- Department of Administration Reporting
- Auditing the Library's Accountings
- Depreciate Assets
- Montana Department of Revenue Reporting
- Montana Department of Labor and Industry Reporting
- Montana Public Employees Retirement Administration
- Create an annual report for the library
- Montana State Library Reporting
- Reporting Checklist
- Conclusion
- Appendices