Does a Social or Savings Club need a Tax ID (EIN)?
A social or savings club will likely need a tax ID if it wants to start a bank account. Most social or savings clubs are designed to pool money from multiple individuals into a single account, and consequently they need to be properly structured, and they need a tax ID. Once the tax ID is in hand, they can open a business account under the entity, and make sure that everyone’s investment is protected.
Social or savings clubs can include everything from golf clubs to fraternities. They are often non-profit organizations that are specifically targeted towards hobbies and recreation. Savings clubs may be designed to save for something specific, such as a group trip. Either way, they do need to be properly legally organized, and they will have to file a tax return at the end of the year. This is another reason they will need to have their own tax ID. However, because a social or savings club is usually non-profit, they can also usually acquire a tax exemption.