Yes, unincorporated associations can open bank accounts, but the process differs from personal or business accounts
An unincorporated association is a group of people who come together for a shared purpose — a club, neighborhood group, faith community, sports league, or volunteer organization — without formally registering as a corporation or nonprofit with the state. Banks do open accounts for these groups, but they treat them differently than they treat individuals or incorporated businesses because the group itself has no legal identity separate from its members.
The bank will ask for documentation that proves the group exists, who speaks for it, and who can sign checks. Since an unincorporated association has no charter or articles of incorporation on file with the state, you will need to create internal documents that show the bank what the group has decided about money and authority. This is straightforward, but it requires more paperwork than opening a personal account.
Key Takeaways
- Banks require written proof that your group exists and has made decisions about who can handle money, since unincorporated associations have no state registration to verify.
- You will typically need a resolution or bylaws signed by group members, a list of authorized signers, and identification for those signers.
- Some banks are more familiar with unincorporated associations than others; calling ahead to ask whether they open accounts for groups without incorporation can save time.
- The account will likely be held in the group's name, but the bank may require one or more individual members to be personally liable if the account goes negative.
What documents the bank will ask for
Banks vary in what they require, but most ask for a resolution — a written statement signed by group members that authorizes the account and names who can sign checks. This does not have to be formal or notarized; it can be a straightforward letter stating that the group has decided to open an account and listing the names and titles of people authorized to sign. Some banks provide a template for this.
You will also need to bring identification for each person who will be authorized to sign checks or withdraw money. A driver's license or passport works. The bank may ask for a list of all group members or officers, depending on the account type and the bank's internal rules. If your group has written bylaws or a constitution, bring those too — they show the bank that the group has structure and has thought through how decisions get made.
Some banks ask for an Employer Identification Number (EIN), which is a tax ID issued by the IRS. Unincorporated associations can obtain one for free, even if they are not a nonprofit. If the bank requires an EIN and your group does not have one, you can explore online at the IRS website or by mail using Form SS-4. The process takes a few minutes online and you receive the number when ready.
How to write a resolution if your group does not have bylaws
If your group has never written down rules about how it operates, the bank will want to see something that shows the group has made a deliberate decision about the account. A straightforward resolution can be as short as one page. It should state the group's name, say that the group has decided to open a bank account, list the names and titles of people authorized to sign checks, and be signed by at least two members or a majority of the group's leadership.
Here is the basic structure: "We, the members of [Group Name], hereby authorize the opening of a bank account in the group's name at [Bank Name]. We authorize [Name, Title] and [Name, Title] to sign checks and conduct transactions on behalf of the group." Then list the date and have members sign. You do not need a lawyer to write this, and you do not need it notarized unless the bank specifically asks.
If your group already has bylaws or a constitution, you may not need a separate resolution — the bank may accept those documents as proof that the group exists and has made decisions about leadership and spending.
Which banks are most likely to open accounts for unincorporated associations
Community banks and credit unions are often more willing to open accounts for unincorporated associations than large national banks, because they are used to working with local groups and have more flexibility in what documents they accept. Call ahead and ask whether the bank opens accounts for unincorporated associations; if the person on the phone says yes, ask what documents they need. This saves a trip if you are missing something.
Some banks will only open an account if at least one member is personally liable for the account balance — meaning if the group spends more than it has, the bank can pursue that individual member for the debt. Ask about this before you open the account, because it affects who should be authorized to sign checks. You may want to limit check-signing authority to people who understand the group's finances and can prevent overspending.
Personal liability and how it works
Because an unincorporated association has no legal identity separate from its members, the bank may treat the account as if it belongs to the individual members rather than to the group itself. This means the bank could hold one or more members personally responsible if the account goes negative or if a check bounces. This is different from a corporation or nonprofit, where the organization itself is liable and members are usually protected.
Before you open the account, ask the bank in writing whether members will be personally liable and under what circumstances. Some banks will agree to hold only the group liable if the account is clearly set up as a group account. Others will require at least one member to sign a personal may provide. If personal liability is a concern for your group, you might consider incorporating as a nonprofit corporation, which would shield members from personal liability — but that is a separate decision with its own costs and paperwork.
What happens after you open the account
Once the account is open, the bank will issue checks and a debit card if the group wants one. Keep the resolution or bylaws that authorized the account in a safe place, because you may need to show them again if the bank asks you to add or remove authorized signers, or if there is a dispute about who had authority to spend money.
If your group's leadership changes, you should notify the bank and provide an updated resolution or list of authorized signers. This protects the group by making sure only current leaders can access the account, and it protects you personally by showing the bank that you followed proper procedures.
Frequently Asked Questions
Do I need to incorporate my group to open a bank account?
No. Unincorporated associations can open bank accounts. Incorporation is a separate decision that offers liability protection to members but requires filing with the state and paying fees. Many small groups operate successfully as unincorporated associations with bank accounts.
What if my group does not have a formal name?
The bank will need a name to put on the account. If your group goes by a descriptive name — "the neighborhood cleanup crew" or "the Thursday night book club" — you can use that. The bank may ask you to confirm that this is the name the group uses consistently, so pick a name and stick with it.
Can one person open the account on behalf of the group?
One person can start the process, but the bank will want to see that the group has authorized the account. This is why the resolution or bylaws are important — they show the bank that the decision came from the group, not just one person acting alone.
What if the bank says they do not open accounts for unincorporated associations?
Try another bank. Credit unions and community banks are more likely to say yes than large national chains. You can also ask whether the bank would open a personal account in one member's name with the understanding that it holds group money — though this is less ideal because it puts one person's name on the account and may create confusion about who owns the money.
Do I need a tax ID number for an unincorporated association?
Not always. If the group does not earn income or only collects small amounts from members for expenses, you may not need one. But if the group receives donations, grants, or income from activities, the bank or the IRS may require an EIN. Ask the bank whether they need one before you explore.