My recommendation is to start small and build on success. What I mean is that there is no problem for parents, teachers, and school admin to meet on a regular basis to discuss issues (positive and otherwise) in the school. You don't have to call it a PTO and you don't need a bank account (or an EIN) if you don't raise funds.

See how this approach goes the rest of the year and then see if there is consensus to take the next step (name the group, start generating a Charter, getting an EIN and a bank account when you start thinking of handloing money). I'd bet by then you'll have the Principal on your side, especially if the meetings focus on what is going on well (this teacher did a great job on X project; that field trip was excellent because of Y) rather focussing on what is not going as well.

Good luck!

I have the same problem as yours.

But my school is a ministry of the church. They has told me numerous times about NO PTA or NO PTO can be formed or the church board will close down the school. We pay tuition, etc.
But we still meet. Just getting the parents together is great. They express their concerns about the school. Even if the teachers do or do not show up.
My school is afraid of nosy parents and parent involvement. That's what Admin told me.
Just don't give up! Parent involvement is KEY!

I really appreciate the input.

I have been thinking about this question, our pto was actually started by our former principal four years ago so trying to figure it out without her role. I think I would get a few staff members who are willing to help get this started, talk to parents and see how much interest is out there. After that go to your principal and ask him/her if you can just send home a flyer, have a meeting and see what kind of interest there is, Make sure to invite the principal. The truth is the part about you not having a name is well... @#$%, we went through three meetings before we named our group, also the financial paper work etc should not be your worry at this point. Getting a ein number is no big thing and that would be your first step...take it one step at a time and be careful of the "us versus them" situation. If teachers address concern ask them to come to the meeting and it can be addressed as a team...

Well, you can start a PTO without going through all of the formal stuff. I think the majority of PTOs start out that way and then formalize later when there is more of a need for it. That might be the best thing for you guys right now. If the administration has said ok(even though they are now protesting it) and you have parents who want to do it, I think you should go ahead with it. I have no idea how to actually start a PTO though, so hopefully some more experienced PTOers will chime in here.

So what do I do? I don't want problems, especially to start.