Hey guys, I was just wondering if I could get some input from any of you that may be in homebrew clubs and familiar with the financial side of things. Our club recently held elections and some new members were appointed, including our treasurer. Our new treasurer is having a heck of a time trying to get things in order with regards to the bank.

Several banks that he's spoken to will not allow him to open up a account with the club's name on it. They say that we have to have a business license with the state, be a corporation, or be registered as a non-profit. I don't buy into this as our previous treasurer just had our club name as partner on his account. Can anybody provide any information that may be of use? Your brothers in Central Oregon appreciate it.

Let me talk to our treasurer and see what it was that we did to get around all that. I remember when him and I were setting up a new account that that issue came up, but the bank guy said we could do this and that and skate around the buisness license deal.

I'll let you know as soon as i hear from him.

From my days working at a couple of banks as well as my experience as a CPA (California), I believe technically, the banker is correct. Your homebrew club is not currently a legal/business entity (including sole proprietorship) with a taxpayer identification number.

Though as one who doesn't open up bank accounts for a living, I could be wrong and perhaps there is a loophole I'm not aware of.

Hope you get it figured out!

Consider opening a personal account that is only used for homebrew club business. Could be a joint account requiring two signatures, if you are concerned about unauthorized check writing. No one at the bank need know the actual purpose.

Most homebrew clubs don't have a great amount of money in the account. Seems like every time our club treasury gets over $300, we have a group brew or picnic or buy T-shirts for everyone.

You can open an account as an Association. I worked in retail banking for about 4 years, then IT (financial) for the last 13.

I have accounts set up for my Dart and Softball leagues....

I'm sure Frank is correct, but don't business (non private) accounts cost you more in banking fees?

Frank,

Who's TIN is on the account if you open it up as an Association?

The TIN is where I get lost. We're not an actual non-profit organization, just a not for profit organization. We chose not to become a true non-profit because the AHA has some stipulation in their rules about not affiliating themselves with non-profits. Our club maintains a small balance, mostly from membership dues. We typically only spend on club related brewing supplies, and equipment to be used by the club. I was of the understanding that our previous account was a zero interest account, and allowed us to "slide by" some of the banks rules...

I use mine. The interest is so negligible that the tax implication is pretty much nothing...

Also - as for the fees, Commerce Bank (my former employer) doesn't charge fees for Association accounts...

Big darter frank? Me too, league night tomorrow at my place. Sorry for the thread hijack. I'll start another...

Oh, we went non profit.

Frank,

Ah. So it's still an individual account. Your club names, while on the accounts, are literally just for show.

Thanks for the info. I learned something new.

It's technically a business account (if you look on the bank CICS), but you don't need (at least I didn't when I opened the account in 1996) articles of incorporation. Mine is called the "Joe Curley Memorial Dart League" I am the only signer.

Joe Curley was a guy that shot with us until he was 90, then he checked out... RIP Joe!

jimmer - I play American Darts (I.e. Widdy Cork Dart Boards) Sept-April, I used to play English (Cricket and '01's), but Wife 5.0 and the child processes caused that thread to come to a halt.