Do I need a business bank account as a sole proprietor in Canada?

Legally, sole proprietors are not required to have a separate business account, but it is highly recommended. Separating personal and business finances simplifies bookkeeping, makes tax filing easier, and looks more professional to clients and CRA.

Can I open a business bank account online in Canada?

Some banks allow online applications for simple sole proprietorships. Incorporated businesses typically require an in-branch appointment. Online banks like Wise and KOHO Business offer digital business accounts with easier setup.

What documents do I need to open a business bank account?

Requirements vary by bank and business type: personal ID, Business Number (BN) from CRA, articles of incorporation (if incorporated), business registration, and proof of business address. Sole proprietors need less documentation than corporations.

How to Open a Business Bank Account in Canada (2026)

Do You Need a Business Bank Account?

Business Type	Legally Required?	Recommended?
Sole proprietorship	No	Yes
Partnership	No	Yes
Corporation	Yes	Required

Benefits of Separating Finances

Benefit	Why It Matters
Simplified bookkeeping	Track income/expenses easily
CRA audit protection	Clear records if audited
Professional image	Clients pay “Business Name” not your name
Liability protection	Clearer separation
Easier tax filing	All business transactions in one place
Credit building	Build business credit separately

Required Documents

Sole Proprietorship

Document	Details
Personal ID	Government-issued photo ID
SIN	Social Insurance Number
Proof of address	Utility bill or bank statement
Business registration	Provincial business name registration
Business Number	From CRA (if GST registered)

Partnership

Document	Details
Partnership agreement	Signed by all partners
ID for all partners	Government-issued photo ID
Business registration	Provincial registration
Business Number	From CRA

Corporation

Document	Details
Articles of Incorporation	Federal or provincial
Certificate of Incorporation	Proof of incorporation
Corporate minute book	May be requested
Directors’ resolution	Authorizing account opening
Personal ID	For all signing officers
Business Number	Corporate BN from CRA

How to Open a Business Account

Step 1: Register Your Business

Business Type	Where to Register
Sole proprietorship	Provincial registry (master business licence)
Partnership	Provincial registry
Federal corporation	Corporations Canada
Provincial corporation	Provincial corporate registry

Step 2: Get a Business Number

What	Where
Business Number (BN)	CRA (free)
GST/HST account	CRA (if revenue >$30K)
Payroll account	CRA (if you have employees)

Step 3: Choose a Bank

Factor	Consider
Monthly fee	$0-50/month
Transaction limits	How many you need
Integration	Accounting software compatibility
ATM access	If cash deposits needed
Support	Business banking specialists

Step 4: Apply

Method	Details
Online	Some banks for simple sole proprietorship
In-branch	Required for most corporations
Appointment	Book ahead for business banking specialist

Step 5: Fund and Activate

Action	Details
Initial deposit	$0-500 typically required
Order cheques	If needed
Set up online banking	Separate from personal
Order debit card	For business purchases

Best Business Bank Accounts

Big 5 Banks

Bank	Monthly Fee	Fee Waiver	Best For
TD	$5-120	With balance	Extended hours
RBC	$6-139	With balance	Robust features
BMO	$5-90	With balance	Business credit cards
Scotiabank	$6-105	With balance	International business
CIBC	$6-120	With balance	Integration

Digital/Low-Fee Options

Bank	Monthly Fee	Best For
KOHO Business	$0-9	Freelancers, simple businesses
Wise Business	$0 (pay per transaction)	International payments
Simplii Business	Coming soon	Low-cost banking
Tangerine	No business account	N/A

Credit Unions

Option	Best For
Local credit unions	Lower fees, relationship banking
Desjardins (Quebec)	Quebec-based businesses
Coast Capital	BC-based businesses

Comparing Business Account Features

What to Look For

Feature	Why It Matters
Monthly fee	Ongoing cost
Transaction limits	Overage fees add up
Free e-Transfers	Common payment method
Cash deposit limits	If you receive cash
Integration	QuickBooks, Xero, etc.
Credit products	Business credit card, line of credit
Multi-user access	If you have employees/bookkeeper

Sample Fee Comparison

Feature	Basic ($5-10/month)	Premium ($30-50/month)
Transactions	15-25	50-100+
Cash deposits	$2,500	$15,000+
e-Transfers	Limited	Unlimited
Cheques	Extra fee	Some included

Business Credit Card

Benefits of getting a business credit card:

Benefit	Details
Cash flow	21-day grace period
Rewards	Can be substantial on business spending
Expense tracking	Separate from personal
Credit building	Build business credit
Employee cards	With spending limits

Best Business Credit Cards →

Accounting Integration

Software	Best Bank Integration
QuickBooks	Most major banks
Xero	Most major banks
Wave	Major banks
FreshBooks	Major banks

Tip: Choose a bank that integrates with your accounting software for automatic transaction imports.

Tips for Business Banking

Tip	Why
Pay yourself a regular salary	Simplifies personal finances
Keep minimum balance	Avoid monthly fees
Set up automatic GST savings	13-15% of revenue aside
Monitor cash flow	Don’t overdraft
Use business credit card	Rewards + expense tracking
Review monthly	Catch errors, track spending