Are church denominations biblical?

Something I have been pondering for a while is the question of church denominations.  We have tried several.  I grew up Lutheran and that is the church we were married in.  We went to an Evangelical Free Church in Iowa which I really liked.  Until recently we were attending Baptist churches here in Texas although I didn't always agree with their theology.  We have gone back to our Lutheran roots for now anyway because we have become disillusioned with the others.  I wish we could go back to a time when there were no "denominations".  To a time when people met together to worship, fellowship, and help each other.   I think churches today have become so hung up on the service they have forgotten to serve.  Many churches have become so big and impersonal, it is all about the atmosphere and music, we have forgotten who we are there to worship.  It has been suggested to us to start a home church, an idea that I actually like.  Maybe we could get away from the conflicts that seem to plague today's churches and get back to the basics.  I'm not sure where I am going with this but it is something I have been thinking about for a while.