Kaleea -

The simplest way of handling it, for a small organization, is just what you've done. Use the personal ID number of one of the members, with the account in the name of the organization.

In effect, the member whose name (ID) is on the account is acting as an escrow agent for the organization. For the protection of that person, it is pretty significant to the bank examiners and to the IRS that he/she be able to show convincingly that there is an organization.

This means that even with the "simplest-way-out" you need to be sure that you have some kind of an "organizational agreement" that defines its existence. This is usually your Constitution and By-Laws, and if you don't have them in good order, you need to get them put together.

It is also very important that complete, accurate, and permanent records of all transactions be kept - and there should be at least periodic review and approval (accountability) to at least the "board" of the organization, with a record of the reviews - i.e. minutes of board meetings.

A commonly "overlooked" requirement is that when goods and/or services (did you rent a hall?) are purchased by anyone, including an organizations, in many cases a "Form 1099" needs to be filed with the IRS to document the payment(s). The "stated" reason is so that they have to report it as income. Your reason is that you can't show your expenses if you don't - and might end up showing a "profit" (taxable).

In other words - there ain't no really simple way.

Many small organizations get along just fine using "member name" accounts. It sounds as though your group may have reached a size where a more formal arrangement is justified, and an incorporation is likely to be your best method. This should not be overly complicated, or expensive; but it requires the same sort of "formalizing" of your organization as should be in place if you continue to operate it on a less formal basis, plus a couple of "form letters" that your attorney's secretary will copy out of his big book.

After your organization exists as a corporation, you could apply for an "Employer Identification Number" (EIN) from the IRS, and quite likely for non-profit status as a "Service Organization." (You may be able to get all the paperwork processed at the same time.)

Choosing someone to do the paperwork for you is sort of a coin flip. Quite a few accountants could handle it about as well as the "typical" attorney. ("Public" Income tax offices not usually a good choice. You do need a "real" accountant.)It is possible to do it yourself - depending on your tolerance for working your way through bureaucratic paperwork.

Note that I'm not qualified in any way for the advice offered. It's just my observations based on some years as an "independant employer" and as a member of some organizations who've hassled with the same question. You need to confirm your own choices, either through independant study or with the services of suitable "professionals."

John