Social clubs or savings clubs are independent entities formed by members to save and raise money towards group events and activities. Often, a social club is considered by the IRS to be a tax-exempt enterprise. No one in the social club owns shares or is taking money, instead the social club is acting together in common group interest. The social club will need to be formed properly as a business, have its own EIN, and file a tax return with the IRS.
Some examples of social clubs include golf courses, club houses, tennis courts, and other community-based amenities which are run for the benefit of the club members, rather than for profitability. To start business bank accounts, get lines of credit, hire employees, and so forth, the social club or savings club will need to get an Employer Identification Number. An EIN can be acquired online. To maintain the tax-exempt status, the social club will need to file a form with the IRS, and file tax returns every year.