A sole proprietorship is a business that is owned by one person. It’s a simple business structure used by over 2.6 million Canadians, and if you’re a sole proprietor, you’re responsible for every aspect of running your business.
One of the most important decisions you’ll have to make is choosing the right business bank account for your needs. To help you decide, we’ve put together this list of the best business bank accounts for sole proprietorships.
Best business bank accounts in Canada for sole proprietorships
To determine this best list, Finder Canada analyzed 18 business bank accounts across 14 financial institutions. We compared accounts from traditional banks, digital banks, fintechs and credit unions. We narrowed down the list of accounts to the top 10 by only listing accounts that are available in all Canadian provinces.
We ranked accounts based on 18 data points within five major categories. Here’s how we ranked and weighted each product:
Fees: 40% (Monthly fee, ability to waive monthly fee (if necessary), transaction fees, wire transfer fees, NSF fees, overdraft fees)
Perks: 20% (Number of currencies you can bank in, interest rates, signup bonuses, other tailored rewards)
If you're looking to save money and prefer to manage most of your business banking via your smartphone, the RBC Digital Choice Business Account could be the right pick. With the RBC Mobile app you can quickly and easily pay any suppliers, request payments, track your spending and business performance, deposit cheques, send transfers and much more.
Why it's one of the best
Transactions. Enjoy unlimited electronic debit and credit transactions.
Unlimited cheque deposits. Unlimited Moneris and electronic cheque deposits.
Soft credit check only. When you apply for an account, RBC will only conduct a soft credit check, which means your credit score won't be impacted when applying.
Unlimited electronic debit and credit transactions
Unlimited Moneris and electronic cheque deposits
Easy to use app
Competitive foreign exchange rates
Can only spend and receive in CAD
Comes with a monthly fee
Fees for cash deposits and paper deposits
Monthly Account Fee
$6
Multicurrency Accounts
CAD only
Currency Coversion Fee
Varies
GIC Available
Yes
Best multi-currency business account for sole proprietors: Wise Business Account
If your sole proprietorship makes and receives international payments on a regular basis, you'll benefit from having an account that makes it easy to hold and exchange multiple currencies.
Why it's one of the best
70+ countries. Pay staff and suppliers in over 70 countries around the world.
40 currencies. hold funds in 40 different currencies, including CAD, USD, GBP and EUR.
Competitive exchange rates. Get the mid-market exchange rate when you send money overseas.
Get the mid-market exchange rate
Hold funds in nine currencies
User-friendly platform
Transfer fees apply
Doesn't accept cash or cheque deposits
Monthly Account Fee
$0
Multicurrency Accounts
CAD, USD, GBP, EUR, AUD, HUF, NZD, RON, SGD, TRY
Currency Coversion Fee
0.43%
GIC Available
No
Best business account in Canada for new sole proprietorships: RBC Flex Choice Business Account
Flexibility is a key requirement for any new sole proprietorships, especially since you may not yet know what your banking needs are. Banking on your own terms, you'll benefit from no minimum or maximum transaction limits.
Why it's one of the best
Only pay for what you use. This flexible account is suited towards those looking to only pay for what they use.
Bank online or in-branch. If you think you'd rather have some in-person assistance occasionally with banking, RBC is happy to help in-branch.
Access other banking products. Access corporate and business credit cards, GICs, personal accounts and much more with RBC.
Only pay for transactions you use
Bank online or in-branch
Get RBC Preferred Pricing
Monthly fee of $7 charged
You'll pay for each transaction and e-Transfer
Not suitable for larger businesses making lots of paper transactions
Monthly Account Fee
$7
Multicurrency Accounts
CAD
Currency Coversion Fee
Varies
GIC Available
Yes
Best free business bank account for sole proprietors: BMO eBusiness Plan
If you're new to the world of business banking and looking for a free account, the BMO eBusiness Plan could be the business bank account you've been searching for. This account is designed to suit small business owners and has no monthly fee or minimum balance requirements.
Why it's one of the best
No monthly account fee. You won't have to worry about paying a monthly account fee.
Unlimited transactions. Enjoy unlimited Moneris and electronic transactions so you can save more every day.
No minimum balance requirements. You can have as little or as much money in your account as you'd like without incurring any minimum balance fees.
$0 monthly account fee
No minimum balance requirements
Unlimited Moneris and electronic transactions
You'll need to pay for deposits
Not suitable for businesses looking to take advantage of premium banking features
Monthly Account Fee
$0
Multicurrency Accounts
CAD
GIC Available
Yes
Best savings account for sole proprietors: Tangerine Business Savings Account
If you're searching for an account where you can strictly save, we recommend checking out the Tangerine Business Savings Account. With tiered interest rates ranging from 2.35% to 2.95%, you'll be able to stack away money without worrying.
Why it's one of the best
Earn interest on savings. Earn up to 2.95% interest on your savings.
No monthly account fee. This savings account comes with no monthly fee.
No minimum balance requirements. Whether you're just getting started in business or you're a seasoned saver, there are no minimum deposit limits which means you can have as little or as much in your account as you'd like.
Earn interest on your savings
$0 monthly account fee
No minimum balance required
Does not offer the same benefits as a chequing account
Monthly Account Fee
$0
Multicurrency Accounts
CAD
Currency Coversion Fee
N/A
GIC Available
Yes
Best basic business bank account for sole proprietors: TD Basic Business Plan
If you're looking for a no-frills basic account to manage your essential business banking needs, the TD Basic Business Plan may help. It supports 5 transactions per month, five deposits per month (excluding cash deposits) and comes with a $5 monthly fee. If you're not constantly making transactions, this low-fee account could work.
Why it's one of the best
Suited toward low-income businesses. You only get 5 transactions per month and five deposits per month (excluding cash deposits).
Easy deposits. Deposit through TD Mobile and in-branch.
Complimentary free services. Enjoy free online statements with cheque images, archived for seven years.
5 transactions included per month
5 deposit items included each month
Low monthly account fee
Not suitable for businesses making lots of transactions and transfers
Monthly Account Fee
$5
Multicurrency Accounts
CAD
GIC Available
Yes
Best premium business bank account for sole proprietors: CIBC Unlimited Business Operating Account
The CIBC Unlimited Business Operating Account is a premium account that supports unlimited monthly transactions, including Interac e-Transfers, deposits, withdrawals, bill payments and more. If you're looking for a premium account and your business is bringing in a fair amount of revenue a year, this account could work for you.
Why it's one of the best
Enjoy unlimited transactions. Enjoy unlimited transactions and free e-Transfers.
Get the account fee waived. This account comes with a monthly fee, however you can have it waived if you maintain a balance of at least $45,000.
Comprehensive deposit allowances. Deposit up to $15,000 cash, $1,000 coin and 100 cheques each month at no extra cost.
Apply online
Unlimited transactions
Low minimum balance requirement compared to unlimited accounts from other banks
$45,000 minimum balance to avoid monthly fee
Some accounts at other banks allow larger cash deposits
Monthly Account Fee
$65
Multicurrency Accounts
CAD
GIC Available
Yes
Best low-volume business bank account for sole proprietors: BMO Business Builder 1 Chequing Account
If your monthly business banking needs are limited and you're not conducting a large number of transactions, the BMO Business Builder 1 account is a good low-volume business bank account. This account supports 35 transactions per month, including two Interac e-Transfers and unlimited Moneris transactions. You'll need to pay a $22.50 monthly fee, but there's no minimum balance requirement.
Why it's one of the best
Targeted toward limited banking needs. You'll only get 35 transactions per month, including two Interac e-Transfers and unlimited Moneris transactions.
Low monthly account fee. This basic business account comes with a low monthly fee of $22.50.
No minimum balance requirements. There are no minimum deposit limits which means you can have as little or as much in your account as you'd like.
No minimum balance required
35 transactions per month, including two Interac e-Transfers and unlimited Moneris transactions
Monthly account fee of $22.50
Not suitable for businesses making large numbers of transactions
Monthly Account Fee
$22.50
Multicurrency Accounts
CAD
GIC Available
Yes
Best high-volume business bank account for sole proprietors: RBC Ultimate Business Account
If your sole proprietorship is performing lots of transactions each day, the RBC Ultimate Business Account could help you manage banking costs. This all-inclusive package includes unlimited electronic debit and credit transactions with 500 outgoing Interac e-Transfers.
Why it's one of the best
Catered toward businesses banking a lot. This account offers a wide variety of features that cater towards businesses that are constantly banking.
Unlimited transactions. Enjoy unlimited electronic debit and credit transactions and 500 outgoing Interac e-Transfers per month.
Large deposit limits. Unlimited electronic cheque and Moneris deposits are included too, plus up to $25,000 free cash deposits per month
Large deposit limits
Unlimited monthly electronic debit and credit transactions
500 outgoing Interac e-Transfers each month
100 paper transactions per month
Higher monthly account fee than most business accounts
Monthly Account Fee
$100
Multicurrency Accounts
CAD
Currency Coversion Fee
Varies
GIC Available
Yes
Best US dollar business bank account for sole proprietors: Tangerine Business US Dollar Savings Account
The Tangerine Business US Dollar Savings Account is an account designed for small business that conduct transactions in USD. Save money with low to no fees and earn interest on your balance.
Why it's one of the best
Earn interest on savings. Earn 1.3% interest on your USD savings.
No monthly account fee. This savings account comes with no monthly fee.
No minimum balance requirements. There are no minimum deposit limits which means you can have as little or as much in your account as you'd like.
Earn 1.3% interest on your savings
No monthly account fee
No minimum balance required
Competitive exchange rates
Does not offer the same benefits as a chequing account
Only suitable for businesses transacting in USD
Monthly Account Fee
$0
Multicurrency Accounts
USD
Currency Coversion Fee
N/A
GIC Available
Yes
Do sole proprietors need a separate business bank account?
If you run your sole proprietorship under a business name, you’ll need to open a business bank account. But if you run your business under your own name, there’s no legal requirement to open a business account — you can choose to use your personal bank account for business transactions if you wish.
But while it’s not mandatory for sole proprietors to have a business bank account separate from their personal account, there are plenty of reasons why you should.
What are the benefits of having a business bank account as a sole proprietor?
Here’s why it makes sense to open a business bank account as a sole proprietor:
Easy money management. A business bank account provides a central hub where you can manage all of your business transactions, track income and expenses, and monitor cash flow.
Keep business expenses separate. Opening a business bank account lets you keep your business transactions separate from your personal transactions. This makes it easier to stay on top of your income and outgoing payments, and also saves time when you need to do your taxes.
Boost credibility. Invoicing clients from your personal bank account makes your business appear a little amateurish. Using a business bank account looks a whole lot more professional and will improve your credibility.
Simpler tax reporting. Using a business bank account helps you stay on top of your bookkeeping. It’s easier to keep track of your income for tax reporting purposes, plus keep a record of any expenses you can claim as tax deductions.
Build a relationship. Opening a business bank account is also an important part of building a relationship with your bank. Not only will this help you develop your business’ income and credit history, it’ll also help when you want to access business credit cards, loans and lines of credit from the bank in the future.
What should I look for when comparing business accounts as a sole proprietor?
Consider the following factors when searching for the best business bank account:
Monthly fee
Most business bank accounts in Canada come with a monthly fee. The more transactions you need per month, the higher the annual fee will generally be. However, there are some no-fee business bank accounts available, so it’s worth shopping around to see what’s available.
Supported transactions
If you only have minimal banking needs, you’ll most likely be able to get by with an account that supports a small number of monthly transactions. But if you need to make frequent deposits, withdrawals and transfers, you may need an account that supports unlimited monthly transactions.
It’s also important to check the types of transactions the account supports. For example, some business bank accounts allow unlimited electronic transactions but may charge a fee each time you deposit cash or perform an in-branch transaction.
Other fees
Aside from the monthly fee, there are several other fees that could potentially apply to your business account, such as:
Out-of-network ATM withdrawal fees
Interac e-Transfer fees
Cheque deposit fees
Cash deposit fees
Foreign transaction fees
Exchange rate markups and currency conversion fees
Check the fine print for details of all fees that apply.
Online and mobile banking
With more and more banking done digitally, it’s important that your bank offers user-friendly online and mobile banking portals. Check app store reviews and reviews on sites like Trustpilot to see what other business owners have to say about their online and mobile banking platforms.
ATM/branch network
If you regularly need to withdraw cash from ATMs, check the size of the bank’s ATM network so you can avoid fees for using out-of-network ATMs. And if you prefer face-to-face banking, check whether the bank has convenient locations near you.
CDIC protection
Make sure the financial institution you open your account with is a member of the Canada Deposit Insurance Corporation (CDIC). This means up to $100,000 you deposit will be insured in the event that your bank fails.
Multi-currency support
If your business operates internationally, a multi-currency business account can be a very useful tool. Look for an account that supports the local currencies in the countries where you do business, but remember to check what transaction fees apply and the account provider’s exchange rate markup when you convert currencies.
Business resources
Many Canadian banks offer additional tools and resources to help business owners like you. For example, you may get access to online educational webinars and courses or a specialist business adviser.
Discounts and perks
Opening a business account may also give you access to other discounts from the same financial institution. For example, you may be entitled to a waived annual fee on a business credit card or discounts on products from partner providers.
Customer support
It’s also a good idea to check how you can access customer support if you have a problem with your account. Check whether you can get in touch via live chat, phone and email, and find out during which hours the support team is available.
What are the types of business bank accounts to consider as a sole proprietor?
Business chequing account. A chequing account is used for your everyday business banking transactions. You can use it to receive payments from customers, pay your suppliers and make business purchases using a linked debit card. It also includes reporting and money management tools to help you keep track of your expenses and cash flow plus meet your tax reporting obligations.
Business savings account. A savings account pays a high rate of interest on the money you deposit. So if you have spare funds you don’t need for the day-to-day running of your business, you can put them in a savings account and boost your bottom line. However, many business savings accounts only support a limited number of transactions.
Business multi-currency account. A multi-currency account lets you send, receive, hold and spend money in two or more currencies. For example, as well as holding CAD, you may also be able to hold USD, GBP and EUR. This allows you to save money on currency conversion costs, pay your overseas suppliers in their own currency and receive payments from customers in the countries where your business operates.
Frequently asked questions
Yes. If you're a sole proprietor, you're eligible to open a business bank account in Canada.
As a sole proprietor, you will typically be asked to provide your trade name registration certificate or your master business licence when opening an account. Depending on the bank and on your business' financial situation, you may be required to provide additional information, such as your most recent business notice of assessment or other financial statements.
The exact process for opening a business account varies depending on the financial institution you choose. In some cases you can open an account completely online, but other banks might require you to visit your nearest branch to verify your ID.
To open an account you will need to provide:
Your name, personal information and contact details
Proof of ID
Your business trade name registration certificate or a copy of your master business licence
While most business bank accounts in Canada come with a monthly fee, there are some no-fee accounts available. For example, BMO offers its eBusiness Plan and Scotiabank offers the Right Size Savings For Business Account, while multi-currency business accounts are also available from online providers like Loop, Vault and Wise. It's also worth mentioning that many banks will waive the monthly fee on your business bank account if you keep your balance above a minimum threshold each month.
In addition to opening a business bank account, you'll also need to create a business plan, register your business with your provincial or territorial government, and consider your small business insurance needs. Check out our guide to setting up business as a sole proprietor for more information.
Tim Falk is a freelance writer for Finder. Over the course of his 15-year writing career, he has reported on a wide range of personal finance topics. Whether you're investing in stocks and ETFs, comparing savings accounts or choosing a credit card, Tim wants to make it easier for you to understand. When he’s not staring at his computer, you can usually find him exploring the great outdoors.
Figuring out which auto expenses are tax deductible can get confusing. We’ll help you understand which costs to claim, so you can maximize your business tax benefits.
A business savings account is a good alternative for business owners not interested in aggressively investing excess business funds.
Feedback
How likely would you be to recommend finder to a friend or colleague?
0
1
2
3
4
5
6
7
8
9
10
Very UnlikelyExtremely Likely
Required
Thank you for your feedback.
Our goal is to create the best possible product, and your thoughts, ideas and suggestions play a major role in helping us identify opportunities to improve.
Advertiser Disclosure
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
