HELP _ Accountant question - It's a hiking club. Founded 45 years ago. A year or so later, a bank account was opened.

[snot]

8. Well again, don't rely on my advice, and

you should probably consult a CPA or lawyer, but my understanding has been that part of the rationale for taxing juridical entities is that they confer on their owners the benefit of a shield from liability – i.e., if you car's defective, you might be able to sue G.M., but you generally can't collect from the G.M.'s Pres. personally.

If your group had incorporated or otherwise instituted itself as a separate legal entity, it might be liable for income taxes, but if someone were, e.g., injured at an event organized by your group and wanted to sue, they'd probably have to sue the group and their recovery would be limited to assets owned by the group, rather than being able to recover from the group's owners or members individually out of their own, personal assets.

Again, however, best to consult a CPA.