Incorporated Business Bank Account Canada 2026

💼 Separate Personal & Business Finances

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Best Business Accounts for Canadian Corporations

Institution	Monthly Fee	Corp Account?	Best For
EQ Bank Business	$0	Yes	Low-cost corp banking, cash reserves
RBC Digital Choice	$6/mo	Yes	Corporations wanting Big 5 + loans
TD Every Day Business	$19–$49/mo	Yes	High-volume corporations
BMO eBusiness	$0/mo	Yes	Digital-first corporations
CIBC Basic Business	$12/mo	Yes	Professional corporations
Scotiabank Right-Size	$0–$79/mo	Yes	International corp transactions

Why Incorporated Companies Must Have a Separate Bank Account

Unlike sole proprietors, incorporated companies are legally distinct entities from their owners. Using personal bank accounts for corporate transactions is not just poor practice — it carries serious legal and tax consequences:

Piercing the Corporate Veil

The primary benefit of incorporation is limited liability — your personal assets are protected from business debts and lawsuits. If a court finds that you've commingled personal and corporate funds (using the same account, paying personal expenses from the corporate account without proper documentation), it can "pierce the corporate veil" and hold you personally liable for corporate debts. Separate accounts are the most basic requirement to maintain this protection.

CRA Corporate Tax Compliance

Corporations file their own T2 corporate tax return. CRA expects corporate income, expenses, and shareholder transactions (salary, dividends, shareholder loans) to be clearly tracked through a corporate bank account. Mixing personal and corporate transactions makes the T2 filing extremely complex and increases audit risk.

Shareholder Loan Tracking

Any money moving between you and your corporation — whether you're lending money to the company or withdrawing more than your salary/dividends — creates a shareholder loan. CRA scrutinizes shareholder loan accounts closely. Clean corporate banking records make shareholder loan reconciliation straightforward.

Legal requirement: Unlike sole proprietors, incorporated businesses are legally required to maintain corporate records including financial statements. A corporate bank account is foundational to fulfilling this requirement.

Documents Required to Open a Corporate Bank Account

Federal Corporation (CBCA)

Certificate of Incorporation (from Corporations Canada)
Articles of Incorporation
CRA Business Number (BN)
Government-issued photo ID for all signing officers/directors
Corporate Resolution authorizing account opening and naming signing officers
Register of Directors (may be requested)

Provincial Corporation (e.g., Ontario Business Corporations Act)

Certificate of Incorporation (from provincial registry)
Articles of Incorporation
CRA Business Number (BN)
Photo ID for all directors with signing authority
Corporate Resolution authorizing the account

Tip: Some banks (EQ Bank, BMO) can open corporate accounts online. Big 5 banks often require a branch appointment for new corporate accounts, particularly for corporations with multiple directors.

Holdco and Opco: Two-Account Structure

Many incorporated Canadian business owners use a two-corporation structure for tax efficiency:

Operating Company (Opco): The active business that earns income and pays expenses. Has its own bank account.
Holding Company (Holdco): Receives dividends from Opco and holds passive investments. Has a separate bank account.

The Holdco structure allows business owners to extract profits from their Opco at a low corporate tax rate, accumulate investments within the Holdco sheltered from personal tax, and protect assets from Opco liability. This strategy requires separate bank accounts for each corporation — and ideally a separate relationship with a bank or accounting firm that understands this structure.

Frequently Asked Questions

Does an incorporated company legally need a separate bank account?

Yes — corporations are separate legal entities and must maintain separate finances. Using personal accounts for corporate transactions risks piercing the corporate veil, creating personal liability, and complicating CRA compliance.

Can I open a corporate bank account at EQ Bank?

Yes. EQ Bank accepts incorporated businesses and the account opening process is fully online. You'll need your Certificate of Incorporation, Articles, CRA Business Number, and photo ID for signing officers.

What is a corporate resolution for bank account opening?

A corporate resolution is a formal document signed by the board of directors authorizing a specific action — in this case, opening a bank account and designating who has signing authority. Your incorporation lawyer or accountant can prepare one, or you can use a template from your bank.

Should I use a Big 5 bank or EQ Bank for my corporation?

For the first years of operation, EQ Bank ($0) or BMO eBusiness ($0) are excellent low-cost options. As your corporation grows and needs commercial credit, payroll services, or merchant accounts, adding a Big 5 relationship becomes valuable. Many incorporated businesses use EQ Bank as a primary account and maintain a secondary RBC or TD account for credit access.