When you are trying to integrate a quote into a paper it helps to use what is called a "signal phrase". In her book "A Writer's Reference" Diana Hacker lists the following signal phrases on page 454:
* admitted * agreed * argued * asserted * believed * claimed * compared * confirmed * contended * declared * denied * emphasized * insisted * noted * observed * pointed out * reasoned * refuted * rejected * reported * responded * suggested * thought * wrote
Whether you use a direct quotation or paraphrase, you must cite your source. Here are some examples of quotation and paraphrasing.
Quotations
As Carey McWilliams states "over 2,000,000 people moved into California, 72R% of whom settled in Southern California, with Los Angeles County recording a gain of 1,272, 037" (135).
According to Walter Nugent "In 1850, 92 percent of white Californians were between fifteen and forty-five" (p. 57)
As Upton Sinclair states "Whoever made this universe ordained it that people learn by suffering, and in no other way" (3).
Summarizing or Paraphrasing
Original Source:
Throughout Southern California there is not a single river, as people ordinarily understand the term, not a single natural lake, not a single creek with a year-round flow of water. - Carey McWilliams, "Southern California Country, An Island on the Land", (1946), p.184
Improper paraphrasing:
Carey McWilliams notes that there is not single lake or creek in Southern California with a yearly flow of water (184)
Correct paraphrasing:
Author Carey McWilliams notes Southern California's propensity to drought as it does not have natural water sources (184).
You do not need to cite common knowledge, information that is widely known or easily located.
Examples of common knowledge:
However, if you are unsure if what you are stating is common knowledge, err on the safe side and cite it.