What you need before you open an HOA bank account
An HOA bank account requires documentation that proves the association exists as a legal entity and that you have authority to open it. Most banks will ask for your HOA's articles of incorporation or declaration of covenants, conditions, and restrictions (CC&Rs), a copy of your bylaws, and a board resolution authorizing the account. Some banks also require an Employer Identification Number (EIN) from the IRS, which is a nine-digit tax ID for your association.
You will also need to identify who will be authorized signers on the account. This is typically the treasurer, president, or both, though some HOAs require two signatures on checks above a certain amount. The bank will need the names, addresses, and Social Security numbers of anyone you designate as a signer.
Bring a government-issued photo ID when you visit the bank. If you are opening the account on behalf of the HOA but are not the treasurer, bring a board resolution or letter from the board authorizing you to do so. Some banks accept these documents electronically; others require originals or certified copies.
Key Takeaways
- Your HOA's articles of incorporation, bylaws, and a board resolution are the core documents most banks require to open an account.
- An EIN from the IRS is not always required but makes the process smoother and is necessary if your HOA pays contractors or files tax returns.
- Designate specific board members as authorized signers and decide whether checks require one or two signatures before you meet with the bank.
- Different banks have different requirements for HOA accounts, so call ahead to confirm what documents they need and whether they charge monthly fees for non-profit or association accounts.
Getting an EIN if your HOA does not have one
An Employer Identification Number is a tax ID issued by the IRS. Your HOA needs one if it pays employees, contractors, or vendors and issues 1099 forms, or if it files an annual tax return. Many HOAs do need an EIN even if they are non-profit, because they collect dues and spend money.
You can obtain an EIN for free by visiting the IRS website (irs.gov) and using their online EIN application tool, or by calling the IRS at 1-800-829-4933. The online process takes about 15 minutes and you receive your EIN immediately. If you apply by phone, you will get the number during the call. You do not need to file any paperwork with your state; the EIN is federal only.
Bring the EIN letter or confirmation number with you when you open the bank account. If your HOA already has an EIN, you can look it up on the IRS website or check your past tax returns or correspondence from the IRS.
Choosing a bank and account type
Not all banks offer accounts designed for HOAs or non-profits. Call ahead and ask whether the bank has experience with homeowners associations and what documents they require. Some banks waive monthly fees for non-profit or association accounts; others charge $10 to $25 per month. Ask about overdraft protection, check printing costs, and whether they offer online banking and bill pay.
You will typically open a non-profit checking account or a standard business checking account in the HOA's name. Some banks offer savings accounts for HOAs as well, which can be useful if your association sets aside reserves for major repairs or replacements. A money market account may offer slightly higher interest if your HOA maintains a large reserve balance.
Consider whether you want a bank with a local branch where board members can deposit checks in person, or whether online banking and mobile deposit are sufficient. If your HOA collects dues by check, mobile deposit can speed up the process of getting money into the account.
Documents to bring to the bank
Prepare these documents before you visit or contact the bank:
- Articles of incorporation or declaration of CC&Rs (original or certified copy)
- HOA bylaws (copy)
- Board resolution authorizing the account (original or certified copy)
- EIN letter or confirmation from the IRS (if you have one)
- Government-issued photo ID for the person opening the account
- Names, addresses, and Social Security numbers of all authorized signers
Some banks accept scanned or photographed copies of these documents if you are opening the account online or by mail. Others require originals or certified copies. Call the bank's business account department before you go to confirm which format they accept and whether they need anything else specific to your HOA.
Setting up authorized signers and spending limits
Decide before you meet with the bank whether one signature or two signatures will be required on checks and withdrawals. Many HOAs require two signatures on checks over a certain amount—for example, $500 or $1,000—to prevent fraud or unauthorized spending. This is a common internal control and most banks can set it up.
The board resolution you bring to the bank should specify who the authorized signers are and what spending limits apply. For example: "The treasurer and president are authorized signers on all checks. Checks over $5,000 require both signatures." The bank will use this resolution to set up the account rules in their system.
You can change authorized signers later by submitting a new board resolution to the bank. This is important if a board member leaves office or if the HOA wants to add a new signer. Keep a copy of every resolution you submit to the bank in your HOA records.
What happens after you open the account
The bank will provide you with checks, a debit card (if you request one), and online banking login information. Order checks with the HOA's name and account number printed on them. Do not use personal checks or blank checks for HOA expenses.
Set up online bill pay if your HOA pays utilities, insurance, or vendor invoices regularly. This can reduce the time spent writing and mailing checks. Make sure the person who sets up bill pay has board authorization to do so, and keep records of all payments in your HOA accounting system.
Reconcile the bank account monthly by comparing the bank statement to your HOA's records. This catches errors, fraud, or unauthorized transactions early. Assign this task to the treasurer or a designated board member and keep reconciliation records for at least three years.
Common requirements that vary by bank
| Requirement | What to expect |
|---|---|
| Articles of incorporation | Most banks require an original or certified copy. Some accept a photocopy if you show the original in person. |
| Board resolution | Nearly all banks require this. It must be signed by the president and secretary and state who can sign checks and for what amounts. |
| EIN | Required by some banks, optional at others. Having one makes the process faster and is necessary if your HOA has employees or contractors. |
| Minimum balance | Some banks require a minimum opening deposit ($100 to $500). Others have no minimum for non-profit accounts. |
| Monthly fees | Ranges from $0 to $25 per month. Non-profit accounts often have lower or waived fees. |
Frequently Asked Questions
Can the HOA president open the account alone, or does the treasurer have to be involved?
Either can open it, but the person opening the account must have a board resolution authorizing them to do so. The resolution should list all authorized signers, which typically includes both the president and treasurer. The person at the bank meeting does not have to be a signer themselves.
What if the HOA does not have articles of incorporation?
If your HOA was created under state law but never formally incorporated, bring the declaration of CC&Rs and your bylaws instead. These documents prove the HOA exists and is governed by a board. If you have neither, contact your state's Secretary of State office to find out what documents your HOA should have on file.
Do we need a separate account for reserves, or can we keep everything in one checking account?
You can keep everything in one account, but many HOAs open a separate savings account for reserves to keep that money distinct and prevent accidental spending. This is a best practice but not required. If you do open two accounts, make sure the board resolution authorizes both and specifies which signers can access each one.
How long does it take to open an HOA bank account?
If you have all documents ready and the bank has no questions, you can open the account in one visit or one online session. The bank may take one to three business days to activate the account and issue checks. If documents are missing or the bank needs clarification, the process can take longer.
What if a board member refuses to sign the resolution authorizing the account?
The resolution needs approval from a quorum of the board, not unanimous consent. Hold a board meeting, vote on the resolution, and document the vote in your meeting minutes. As long as a majority votes yes, the resolution is valid and you can proceed to the bank with the signed resolution and meeting minutes.