Can a husband and wife hold a NOW account? Are they considered a single entity like a DBA?

Reg D §204(b) states: Individuals. (1) Any individual may maintain a NOW account regardless of the purposes that the funds will serve. Thus, deposits of an individual used in his or her business including a sole proprietor or an individual doing business under a trade name is eligible to maintain a NOW account in the individual’s name or in the “DBA” name. However, other entities organized or operated to make a profit such as corporations, partnerships, associations, business trusts, or other organizations may not maintain NOW accounts.

Since it sounds like this is a partnership, it wouldn't qualify. If it is a sole prop and one of the people is named, I think it'd be OK. Once they formalize the partnership, though, it's all over.