Business Bank Account Canada: Complete Guide

Everything you need to know about opening, choosing, and managing a Canadian business bank account in 2025.

Do You Need a Business Bank Account?

If you operate as a corporation in Canada, you are legally required to maintain separate corporate bank accounts. CRA treats corporations as distinct legal entities, and commingling corporate and personal funds can pierce the corporate veil and expose shareholders to personal liability.

Sole proprietors and partnerships are not legally required to open a separate business account, but it is strongly recommended for bookkeeping clarity, HST/GST tracking, and audit readiness. CRA auditors will ask to see business transaction records, and a dedicated account simplifies this considerably.

What Documents Do You Need to Open a Business Account?

• Incorporated businesses: Certificate of Incorporation (federal or provincial), Articles of Incorporation, CRA Business Number, shareholder/director resolution authorizing account opening, government-issued ID for all signatories
• Sole proprietors: Business name registration (if operating under a trade name), CRA Business Number, government-issued ID
• Partnerships: Partnership agreement, all partners' ID, business registration

Types of Business Bank Accounts in Canada

Account Type	Best For	Typical Fee
Business Chequing	Daily operations, bill pay, payroll	$0–$65/month
Business Savings / HISA	Reserves, tax installments	Usually free
Business GIC	Cash parked 30–365 days	Free (rate varies)
USD Business Account	US clients, cross-border payments	$10–$30/month extra
Merchant Account	Accepting card payments in-store/online	% of transactions

How to Choose the Right Business Account

The right account depends on your transaction volume, industry, and growth plans. Consider:

• Monthly transactions: High-volume businesses (retail, restaurants) need unlimited transaction plans
• Cash handling: If you regularly deposit cash, you need a bank with branches or ATM deposit capability — online-only banks may not support this
• International payments: Look for multi-currency support or integrate a Wise account
• Accounting integration: Does it sync with your bookkeeping software automatically?
• Credit line access: Some banks offer an operating line of credit tied to your business account

Online vs. Traditional Business Banking

Online business banking has matured significantly. KOHO Business, Relay, and Wise now offer robust feature sets that meet the needs of most small businesses under $5M revenue. The primary advantages of traditional banks remain: branch access for cash deposits, established credit products, and brand recognition for clients who write paper cheques.

For most service-based businesses, freelancers, consultants, and e-commerce sellers, a free online account like KOHO Business covers all daily needs while saving hundreds in monthly fees.

CRA Business Number and HST Setup

When opening your business account, you will also want to register for a CRA Business Number (BN) if you have not already. The BN links your HST/GST account, corporate income tax account, and payroll account. Registration is free at cra.gc.ca and takes about 15 minutes online. Once registered, your bank will ask for the BN when opening the account.