association

An association is an unincorporated organization of people banded together for a specific purpose. Generally, associations are tax-exempt under nonprofit 501 exemption ; however, if an association has certain features that make it look like a corporation (e.g., central management, continuous existence, and limited liability that shields individual members from suit), it may still be required to pay taxes.

• Examples of common associations include homeowners associations, condominium associations, and many social advocacy groups.

Association is also a descriptive term for the act of meeting people and sharing ideas (e.g., "freedom of association" under the First Amendment of the U.S. Constitution ).

[Last reviewed in March of 2025 by the Wex Definitions Team ]

Keywords

• llcs-corporations-partnerships

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