Google neither encourages nor prohibits people from creating legal entities for the purpose of GDG chapter accounting or being able to form agreements.
There are several conditions which need to be met when creating such an entity if you want to use the “GDG” brand in it.
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Must be a nonprofit type of entity
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Must not contain any Google branding
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Must use GDG brand only, with the chapter name (so as not to create an impression it’s representing other GDG’s) and using the “GDG” abbreivation, not the full name. If “Google” is part of the entity name, that will get you in trouble with Google’s legal department.
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There must by some bylaws in the entity signed by its stakeholders/owners which say that:
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the GDG [chapter] as the group is still open to any organizers
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that the entity manager is NOT necessarily the person who decides things in the GDG, the decision making process is decided by the GDG organizers (even if it means that one person is a “boss”)
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the entity is only representing the GDG chapter as a legal/accounting representation
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The GDG named entity must NOT be involved in any activities in which GDG’s don’t get involved, such as paid-for training, partnerships with other entities independent on GDG activities, etc.
If you create an entity supporting GDG but not using the GDG brand in it, then there are no conditions.