Best Business Bank Accounts in Canada: Fees, Features and How to Open One

A business bank account keeps the business’s money separate from the owner’s: client payments come in under the business name, suppliers and staff are paid from it, and the statements become the business’s bookkeeping record. The account you choose sets your monthly cost, how easily you can pay people, whether you can deposit cash, and whether the bank can lend to the business later. This guide compares business chequing plans at the Big 5 banks and credit unions, then covers whether you need a business account and how to open one.

Business chequing in Canada runs from about $6 a month for a low-volume digital plan to $100 or more for a high-volume plan with paper transactions included. The right plan depends on the business’s structure, how many transactions it makes, whether it handles cash, and how much branch access and lending matter.

Business chequing plans at a glance

The monthly fee is only part of the cost. A $6 plan that charges for each outgoing e-Transfer can cost more than a $20 plan with e-Transfers included if the business sends 20 or more a month (see the hidden costs below).

Online and no-fee options

There are fewer no-fee choices for business banking than for personal banking. Most fintech accounts are personal only, and the online banks that serve businesses mostly offer savings rather than chequing.

• Tangerine offers only a Business Savings Account, with no business chequing, debit card or e-Transfers. It and other places to hold surplus business cash are compared in the business savings accounts guide.
• KOHO has no business account for freelancers or small businesses. The “Enterprise Partnerships” program on its site lets other companies build financial products on KOHO’s systems; it isn’t an account a business can open. Using a personal KOHO account for business carries the same drawbacks as using any personal account (see below); the KOHO review covers the personal account.
• Wise Business suits businesses that are paid or pay suppliers in other currencies: it holds and sends money in several currencies. It doesn’t take cash deposits and is not a bank. US-dollar options are covered in the US-dollar accounts guide.

Big 5 business bank accounts

The Big 5 banks (RBC, TD, BMO, Scotiabank and CIBC) offer what an online savings account can’t: cash deposits, cheques, wires, lines of credit, payroll services and payment terminals, with a branch to visit. Check each bank’s current business fee schedule before opening an account, since plans and prices change.

RBC

RBC’s lineup includes business credit cards, lines of credit and term loans, and its Ownr platform handles online incorporation.

RBC also has a discounted Community and Not-For-Profit Account ($3.75 a month) and a US Dollar Business Account ($9 a month).

Best for: incorporated businesses that expect to borrow, or that want banking, credit cards and financing at one bank.

TD

TD also operates TD Bank in the United States, and Canadian business clients can hold US-dollar accounts with transfers between the two countries, which suits importers, exporters and businesses with US clients.

Best for: high-volume businesses that use the Unlimited plan, and businesses with US banking needs.

BMO

The eBusiness plan’s 10 transactions a month work for a business making two or three transactions a week. BMO also has a US bank; confirm the current cross-border business options with BMO.

Best for: low-volume businesses that want a Big 5 relationship, and businesses that need US-dollar banking.

Scotiabank

Some Scotiabank business products earn Scene+ points, which adds value for owners who already collect them.

Best for: businesses already banking with Scotiabank, or looking for a mid-volume plan.

CIBC

The Basic Business plan includes 25 transactions for $6 a month, and Full Service suits businesses making 80 to 100 transactions a month.

Best for: businesses that want a Big 5 bank with 25 transactions included on the entry plan.

Credit union business accounts

Credit unions often charge lower fees than the Big 5, can be more flexible on lending to newer businesses, and offer more personal service. Most operate in one province, with fewer branches and ATMs, so a business that operates nationally or needs in-person banking in several provinces may find a Big 5 bank more practical.

Desjardins, a cooperative of caisses in Quebec and Ontario, offers business services on the scale of the big banks. Vancity and Coast Capital serve businesses in British Columbia, and Meridian serves Ontario. The credit unions comparison covers membership, deposit insurance and what each offers.

What a business account includes

Most Big 5 business chequing plans include a debit card, cheques, e-Transfers (often for a fee), bill payments, wires, cash deposits, access for a bookkeeper or accountant, and the option to add a line of credit and merchant services. A business that handles cash, such as a store, food truck or contractor paid in cash, needs an account with branch or ATM cash deposits. A savings-only account can hold surplus cash but can’t do day-to-day payments.

A business credit card is a separate product: it keeps business spending apart from personal spending and earns rewards on it. The business credit cards comparison covers the options; most banks pair their cards with their business chequing accounts.

How to choose a business account

By business structure

A lender considering a line of credit, equipment loan or commercial mortgage looks at the business’s banking history, so an incorporated business that expects to borrow often opens its account at a bank or credit union that lends. Sole proprietors and freelancers have more flexibility: a low-fee entry plan covers low volume and still starts a banking relationship for later borrowing.

By monthly transaction volume

Exceeding a plan’s included transactions can cost more than the plan’s fee saved. Each debit purchase, cheque, bill payment and e-Transfer usually counts separately. Most banks let you watch the count and change plans if needed.

By priority

Do you need a business bank account?

It depends on the business structure:

• Corporations need one. A corporation is a separate legal entity from its shareholders and directors, and its revenue belongs to the corporation, not to the owner. Corporate money is held in an account in the corporation’s name; depositing it into a personal account creates accounting and tax problems.
• Sole proprietors and partnerships aren’t legally required to have one. In law, a sole proprietor and the business are the same person. But the CRA expects all business income to be reported and only business expenses claimed, and that is harder to show from an account that mixes business and personal spending. Every transaction has to be sorted, and a bookkeeper’s time to do it can cost more than the account.

A business account also lets clients pay, and cheques be issued, under the business name rather than the owner’s personal name. The differences between the structures are covered in the comparison of business structures in Canada.

Opening a Business Bank Account in Canada

Documents by business type

Requirements vary between banks, so confirm the list before an appointment. Most Canadian banks ask for the following.

A sole proprietor operating under their own legal name can often open an account with personal ID alone. One operating under a trade name (for example “Maple Studio”) needs a provincial business name registration first, such as Ontario’s Master Business Licence or a business name registration in BC. A partnership’s account is opened by its partners, and all of them may need to sign the account agreement. Corporate accounts usually need an appointment with a business banking advisor.

The CRA Business Number (BN) is the nine-digit number the CRA uses for all of a business’s tax accounts. It is issued when the business registers for a GST/HST, payroll, import-export or corporate income tax account; the GST/HST guide covers when registration is required. Many banks accept the registration reference number if the BN is still being processed.

Step by step

After the account opens

Accounting software such as QuickBooks, Xero, Wave and FreshBooks can import transactions from most Canadian banks, which saves manual entry. A business registered for the GST/HST collects tax that it later remits, so many keep that money in a separate savings account until the remittance is due. A regular, defined transfer to the owner (a salary or an owner’s draw) keeps the records cleaner than ad hoc withdrawals.

Hidden costs

Monthly fees are the most visible cost, but business accounts often charge separately for services personal accounts include. Each bank publishes its full business fee schedule.

Related guides

• Business savings accounts
• US-dollar accounts, personal and business
• Business credit cards
• Self-employed vs incorporated
• Small business tax deductions
• Personal chequing accounts with no monthly fee

Personal accounts, opening and switching guides and accounts for each life stage are in the bank accounts guides section.