Key takeaways
- Corporations must keep company money separate.
- Sole proprietors benefit from separating it too.
- Accounts cost from C$0 (fintechs) to about C$11 a month (big-bank basics).
- Look for e-Transfers, integrations and foreign-currency options.
Why it matters
- Corporations: the company is a separate legal entity, so its money belongs in its own account.
- Sole proprietors: mixing personal and business spending makes bookkeeping harder and tax time slower.
- Getting paid: customers and partners expect to pay a business account in your business name.
What it costs
| Option | Monthly fee |
|---|---|
| Fintech accounts (Venn, Loop, Wise, Airwallex) | From C$0 |
| BMO Essential Plan | C$5 |
| TD Business Digital Account, RBC Digital Choice Business | C$6 |
| Scotiabank Basic Business Account | C$10.95, waived with an C$8,000 balance |
A worked example
A freelance designer earning C$8,000 a month from clients opens a business account and moves a share of each payment into tax savings. At year end, every business expense is in one place, and the accountant’s time, and fee, goes down.
How to choose
- If you deposit cash or want branch support, choose a big bank.
- If you’re paid in USD or other currencies, choose a multi-currency fintech account.
- Check e-Transfer limits, transaction fees and accounting integrations.
Providers that can help
Free business account with CAD, USD, GBP and EUR
Big-bank account from C$5 a month
Unlimited electronic transactions for C$6 a month
FAQs
Is a business bank account required for a sole proprietor in Canada?
It isn’t strictly required, but it’s strongly recommended because it keeps business income and expenses separate and simplifies bookkeeping and taxes.
Is a business bank account required for a corporation?
Yes, in practice: a corporation is a separate legal entity, so its money should be held in an account in the company’s name.
What do I need to open a business account?
Usually your business registration or articles of incorporation, a business number and ID for the owners and signing officers. Requirements vary by provider.
Can I open one online?
Yes. Fintech accounts open online, and some big-bank accounts, such as BMO’s Essential Plan for eligible businesses, can also be opened online.
Sources: Published account fees from BMO, TD, RBC, Scotiabank, Venn, Loop, Wise and Airwallex.