Up until February of 1864, the color-bearer could be any enlisted man -- private, corporal or sergeant -- selected by a unit commander. Rank did not matter; selection did. In 1864 Congress created a commissioned officer for each regiment and battalion called an ensign. Each unit commander was requested to appoint an enlisted man to this office who would carry the colors. Ensigns served with the rank and pay of 1st Lieutenant.
People frequently ask about the flag of a particular regiment. They assume that each regiment had one flag, and one flag only during the course of the war. Unless the organization only existed for a brief period, this would not be true at all. Flags carried by any one command could vary considerably from one period to the next in terms of size, color and design. Of course over time battle honors could be added as well.