Best business bank accounts for sole proprietorships

Learn what to look for when choosing an account as a sole proprietor in Canada

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

Best overall business bank account in Canada for sole proprietors: RBC Digital Choice Business Account

RBC Digital Choice Business Account
BEST OVERALL
Finder Rating: ★★★★★ 4 / 5
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RBC Digital Choice Business Account

$6
Monthly Account Fee
CAD only
Multicurrency Accounts
Varies
Currency Conversion Fee
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
Accounting Software Integration Quickbooks, Sage, Xero

Best multi-currency business account for sole proprietors: Wise Business Account

Wise Business
Finder Rating: ★★★★★ 3.8 / 5
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Wise Business

$0
Monthly Account Fee
CAD, USD, GBP, EUR + 6 more
Multicurrency Accounts
0.48%
Currency Conversion Fee
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 + 6 more
Currency Coversion Fee 0.48%
Accounting Software Integration Quickbooks, Xero + more

Best business account in Canada for new sole proprietorships: RBC Flex Choice Business Account

RBC Flex Choice Business Account
Finder Rating: ★★★★★ 4 / 5
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RBC Flex Choice Business Account

$7
Monthly Account Fee
CAD
Multicurrency Accounts
Varies
Currency Conversion Fee
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
Accounting Software Integration Quickbooks, Sage, Xero

Best free business bank account for sole proprietors: BMO eBusiness Plan

BMO eBusiness Plan
Finder Rating: ★★★★★ 4 / 5

BMO eBusiness Plan

$0
Monthly Account Fee
CAD
Multicurrency Accounts
unknown
Currency Conversion Fee
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
Accounting Software Integration Quickbooks, Xero

Best savings account for sole proprietors: Tangerine Business Savings Account

Tangerine Business Savings Account
Finder Rating: ★★★★★ 3.9 / 5

Tangerine Business Savings Account

$0
Monthly Account Fee
CAD
Multicurrency Accounts
N/A
Currency Conversion Fee
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 1.95% to 2.55%, you'll be able to stack away money without worrying.

Why it's one of the best

  • Earn interest on savings. Earn up to 2.55% 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

Best basic business bank account for sole proprietors: TD Basic Business Plan

TD Basic Business Plan
Finder Rating: ★★★★★ 3.6 / 5

TD Basic Business Plan

$5
Monthly Account Fee
CAD
Multicurrency Accounts
unknown
Currency Conversion Fee
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

Best premium business bank account for sole proprietors: CIBC Unlimited Business Operating Account

CIBC Unlimited Business Operating Account
Finder Rating: ★★★★★ 3.8 / 5

CIBC Unlimited Business Operating Account

$65
Monthly Account Fee
CAD
Multicurrency Accounts
unknown
Currency Conversion Fee
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
  • $65,000 minimum balance to avoid monthly fee
  • Some accounts at other banks allow larger cash deposits
Monthly Account Fee $65
Multicurrency Accounts CAD

Best low-volume business bank account for sole proprietors: BMO Business Builder 1 Chequing Account

BMO Business Builder 1 Chequing Account
Finder Rating: ★★★★★ 3.7 / 5

BMO Business Builder 1 Chequing Account

$22.50
Monthly Account Fee
CAD
Multicurrency Accounts
unknown
Currency Conversion Fee
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

Best high-volume business bank account for sole proprietors: RBC Ultimate Business Account

RBC Ultimate Business Account
Finder Rating: ★★★★★ 4 / 5

RBC Ultimate Business Account

$100
Monthly Account Fee
CAD
Multicurrency Accounts
Varies
Currency Conversion Fee
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
Accounting Software Integration Quickbooks, Sage, Xero

Best US dollar business bank account for sole proprietors: Tangerine Business US Dollar Savings Account

Tangerine Business US Dollar Savings Account

Tangerine Business US Dollar Savings Account

$0
Monthly Account Fee
USD
Multicurrency Accounts
N/A
Currency Conversion Fee
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 0.9% 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 0.9% 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

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

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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. See full bio

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