You could do it using the APA style. That means that you have a reference section at the end, but you put author name and year in parentheses directly after your referenced statement.
For example, you could have it this way:
O'Reilly, Bill (2003). Who's Looking Out For You?. Broadway Books. ISBN 0-7679-1379-5.
After a sentence using this source, you would put (O'Reilly, 2003).
Some time ago, I posted on HubPages one of my papers from college. It's about "The Rime of the Ancient Mariner" by Samuel Taylor Coleridge. I used the APA-style reference list and notations. Check it out, if you like.
Also, you could notate your references like the entries on Wikipedia. In the end, the style that you choose is completely up to you. Good luck!