Are denominations bibllical? Let me ask this question: are false teachings biblical?
Sounds like a strange way to address this question about denominations, but we must ask what we mean by biblical, a phrase that gets thrown around a lot and isn't very meaningful to me. I have never met someone who claimed to be a Christian that didn't claim to do things "biblically".
Now let's ask: are divisions in the body of Christ God's desire and a result of His Spirit? Undoubtedly no.
Now the deeds of the flesh are evident, which are: immorality, impurity, sensuality, idolatry, sorcery, enmities, strife, jealousy, outbursts of anger, disputes, dissensions, factions, envying, drunkenness, carousing, and things like these, of which I forewarn you, just as I have forewarned you, that those who practice such things will not inherit the kingdom of God. Gal 5:19-21
Look at this list and see how seriously God takes what leads to denominations. If God's people only took the emboldened words as seriously as those around it... It is so easy to see the sins of the flesh as merely a bunch of activities that wild party types are into. Look at Jesus and who he was the most frustrated with: a bunch of religious people who thought they had all the answers.
With that said, denominations are not the problem. If it were, getting rid of denominations would be the solution. You and I are not going to get rid of denominations any more than we are going to get rid of pronography, drugs, and other "disgusting" sins. However, individual lives can be transformed by the Gospel in the midst of this "wicked and perverse generation". That generation is involved in drugs, incest, and denominationalism.
I actually think it is GOd's will for us to live in this environment: a world fill with the works of the flesh surrounding us. It is the perfect way for God to test our faith and see if we will keep our eyes focused on things above and not on things on the earth. There is no man or woman who will be able to out live the opportunity this world affords to develop the mind of Christ.
Ironically, this very thing that grieves God is something we need to be involved in. We just need to not be the cause of it. The factions which arise are a necessary sifting tool of the this life. In a letter that begins with an appeal for unity we find the following: "For there must be also heresies among you, that they which are approved may be made manifest among you." (I Cor. 11:19) Even Jeus Himself said "Woe unto the world because of offences! for it must needs be that offences come; but woe to that man by whom the offence cometh!" (Matt. 18:7) The wheat and the tares are to grow together.
This environment also helps us develop our discernment and the need to seek wisdom from above. Shortly following a beautiful picture of the the Church being described like a body Paul gives the following exhortation:
Now I beseech you, brethren, mark them which cause divisions and offences contrary to the doctrine which ye have learned; and avoid them. For they that are such serve not our Lord Jesus Christ, but their own belly; and by good words and fair speeches deceive the hearts of the simple. Rom. 16:17-18
This "marking and avoiding" requires the Spirit of God do be done properly.
May we all be encouraging one another to be walking in truth.
"And the world passeth away, and the lust thereof: but he that doeth the will of God abideth for ever." I John 2:17