Best Business Bank Accounts for Sole Proprietorships (2026)

With the wealth of options available, choosing a sole proprietor business bank account may feel overwhelming. Our article helps you find the best fit by breaking down the key factors to consider, why they matter, and the top offers for each type of sole proprietor. 

Bank Account	Monthly Maintenance Fee	Minimum Monthly Balance Requirement for Fee Rebate	Monthly Transaction Limit
RBC Digital Choice Business Account	$6	N/A	Unlimited electronic transactions
	Verdict: Best overall
CIBC Advanced Business Operating Account	$19	$20,000	20
	Verdict: Best for product-based sole proprietors
BMO eBusiness Plan	$0	N/A	Unlimited electronic transactions
	Verdict: Best for service-based sole proprietors
ScotiaBank Professional Plus Plan	$38	N/A	110
	Verdict: Best for professionals
EQ Bank Business Account	N/A	N/A	50 outgoing Interac e-Transfers, 100 incoming Interac e-Transfers, unlimited bill payments, and unlimited mobile cheque deposits
	Verdict: Best for online-only sole proprietors
Wise Business Account	$0	N/A	Unlimited (transaction fees vary by country)
	Verdict: Best for businesses with international transactions

Are Sole Proprietors Required to Open Business Chequing Accounts?

Sole proprietorships in Canada are not required to open business bank accounts. However, maintaining a separate account can make compliance easier. Business bank accounts create a clearer distinction between personal and business funds, which simplifies income and expense tracking, supports accurate tax reporting, and helps maintain organized records in the event of a CRA review. A business bank account can also make it easier to receive payments, manage transactions, and access certain financial services under the business’s operating name.

Benefits of Opening a Sole Proprietorship Business Chequing Account

While Canada does not require sole proprietors to open business bank accounts, separating business and personal funds offers multiple business advantages. Dedicated business accounts may also provide access to benefits and services that personal accounts lack.

Access to Business-Specific Services

Most banks offer services like financial services, including merchant services, invoicing, payment processing, and business credit products exclusively to business account holders. You may have a harder time operating your business with only a personal account. 

Simplified Bookkeeping

Opening a business bank account spares you ‌the extra effort of segregating business and personal transactions. All business expenses flow through one account, which reduces the risk of mis-categorizing transactions, saves time on reconciliations, and makes accounting software easier to use. 

Easier Tax Preparation

Business bank accounts automatically create clear, organized records of business income and transactions. You can use accounting software to categorize transactions, making it easier to calculate deductions, track taxable sales, and input tax credits. 

Improved Audit-Readiness

Business bank account records and statements create concrete, organized, and traceable evidence of financial activity. Additionally, most banks connect with accounting software and enable automatic bank reconciliation. This gives auditors additional assurance that your records are accurate, complete, and free of misstatement or fraud. 

Increased Credibility

Opening a bank account under your business or operating name shows clients, vendors, and partners that you take your business seriously. Receiving payments and issuing refunds from a dedicated account can strengthen your brand credibility, leading to longer-lasting business relationships. 

Improved Financial History Documentation

Using a business bank account helps establish a financial history with a reputable institution. Creditors, lenders, investors, and other types of funders use these records to evaluate your business’s financial stability and eligibility for funding. Keeping your business finances separate also makes your company appear more credible and trustworthy.

Personal Credit Protection

Separating business from personal banking allows you to limit the impact of your business activity on your personal credit profile. Because business bank accounts are opened under your business name rather than your personal identity, everyday transactions like deposits, payments, and transfers do not appear on your personal credit report. This helps protect your personal credit even if your business experiences cash flow challenges.

Factors to Consider When Opening a Business Bank Account

Before selecting a business bank account, it’s important to carefully consider what matters most to your sole proprietorship, including factors like your budget, transaction volume, payment needs, and long-term plans. A well-matched account keeps costs down, simplifies daily operations, and supports steady growth over time.

Type of Financial Institution

There are multiple types of banking providers: national banks, regional banks, credit unions, and digital banking alternatives. Your choice of institution will have a significant impact on multiple aspects of banking. 

• National Banks: National banks operate large networks of branches and ATMs across multiple regions. They offer a wide range of banking products, strong online and mobile tools, and dependable customer support. Because of their size, their fees are often higher, and customer service can feel less personal.
• Regional Banks: Regional banks focus on serving specific areas, allowing them to tailor products and pricing to local businesses. Compared to national banks, their offerings tend to be less comprehensive, but their service is more personal. These banks suit businesses that operate mainly in one region and value local expertise.
• Credit Unions: Credit unions are member-owned non-profit institutions. They focus on building long-term relationships with members by providing hands-on support and personalized products. Because of their smaller size, they may offer fewer products, and some services depend on third-party platforms. However, they also charge lower fees. 
• Digital Banking Services: Digital banks operate entirely online, which helps them keep fees lower than traditional banks. They often provide extra features, like earning interest on deposits, digital budgeting tools, and cost-effective foreign currency services. However, their lack of physical branches may be a drawback for businesses that prefer in-person banking.

Monthly Fees, Minimum Balance Requirements, and Transaction Allowances

In Canada, fees for business bank accounts run at around $5 to $100. Basic accounts start at around $5, mid-tier accounts at $30 to $70, and premium accounts at $100 and above. However, most banks waive fees for account holders who meet equivalent balance thresholds. These allow you to keep costs low as your business grows.

If you can keep high monthly balances, consider upgrading to a higher-tier account. These accounts offer more free transactions, making it easier to handle greater business activity without extra cost. If your activity is lower, a low-fee account is a better choice. It provides essential banking services without charging for extras you don’t use.

Cash Deposit Support

The ubiquity of cashless payment channels like mobile payment apps and credit cards has compelled today’s banks to shift attention away from physical cash deposits. They instead offer digital-focused business bank accounts, which provide generous allowances for digital transactions but restrict cash handling. Sometimes, support is so limited that users must resort to alternatives like money orders to turn cash depositable. 

Overlooking cash deposit options can create unnecessary costs and slow down your workflow. If your business handles cash regularly, choose an account that supports high-volume deposits. This helps you avoid extra fees and keeps operations running smoothly.

Scalability

It’s best to choose a bank that can support both your current operations and your future needs. If you plan for growth, you can avoid the time-consuming ordeal of switching banks later on. Staying with one bank can also strengthen your relationship, which may lead to better terms, personalized service, and faster support.

Most banks offer tiered business chequing options. These let you upgrade seamlessly as your needs evolve. When choosing a business bank, consider your long-term plans, then evaluate whether available options can accommodate your expected revenue, transaction volume, budget, and workflow needs.  

Integrations

To speed up workflows, choose a business bank account that integrates with your business tools. Banking connections sync data across apps, sometimes in real-time, which spares you from the effort of updating information manually. 

Below are examples of common business banking integrations. 

• Accounting and bookkeeping software: Strong business accounts can automatically send transaction data to accounting tools like QuickBooks, Xero, or FreshBooks. This cuts down on manual entry and helps you keep records accurate and up to date.
• Point-of-sale systems: Linking your account to POS platforms such as Square, Shopify, or Clover lets you process payments and transfer deposits into your bank account quickly. It improves cash flow visibility and reduces the time spent on reconciliation.
• Payroll platforms: Integrations with payroll software automate wage calculations and deposits. This ensures timely and accurate payment rollouts, which builds employee trust and satisfaction.

Multi-Currency Support

Sending and receiving funds across borders can be complicated, expensive, and slow. If you work with international clients, customers, contractors, or vendors, you should look into banks that specialize in multi-currency support. Good banks will keep fee structures transparent, lower conversion costs, speed up transfers, or offer multi-currency account options. 

Since it is common for Canadian businesses to transact with the United States, many banks also let you keep money in U.S. dollars. This reduces conversion costs and simplifies American transactions. Picking a bank with versatile currency options makes it easier to manage business across borders.

Digital Banking Tools

Today’s businesses rely on mobile and online banking to manage finances efficiently. These tools let you check balances, approve payments, and handle accounts from anywhere, reducing the need for branch visits and saving time.

At a minimum, digital banking should let you view balances, make transactions, and receive alerts. Many accounts go further, offering extra features that help you manage your money more effectively:

• Mobile cheque deposits: Deposit cheques remotely by taking a photo, avoiding trips to the bank.
• Sub-accounts: Split funds into categories like taxes, payroll, or operating expenses to track allocation easily.
• Dashboards: Visual graphs and summaries make it simple to understand your financial activity at a glance.
• Budgeting tools: Track spending, set targets, and monitor your cash flow directly within the app.

Online Application Support

Many of today’s banks support online banking applications. This saves time and eliminates the need to visit a branch. Online applications are often fast, often completing the process in mere minutes, which allows you to access your account much earlier. 

Online applications also offer greater flexibility. You can begin the process outside business hours, upload required documents securely, and evade the burden of long branch lines. This convenience is especially helpful for sole proprietors who handle most administrative work on their own and can’t take too much time away from their businesses. 

Regional Availability

If you’re not working with a national bank, it’s important to consider regional availability. Local access makes cash deposits, in-person assistance, and networking easier. Some banks limit their branch and ATM presence to certain regions, restricting you to online banking. 

A bank’s regional coverage can also influence the services it offers. Banks with limited presence may charge higher fees for transfers or limit certain services. Selecting a bank that actively serves your area helps keep daily operations running smoothly.

Customer Support Options

Since banks handle sensitive information and valuable assets, reliable support is essential. Good banks offer assistance through multiple channels, such as phone, email, chat, or virtual assistants, so you can get help quickly when problems occur.

You can check platforms like Trustpilot, Yelp, and Reddit to learn about customer experiences. However, keep in mind that unhappy customers are more likely to leave reviews than satisfied ones. Teach each complaint with a grain of salt, and use judgment to determine whether a review reflects an isolated incident or a recurring pattern.

Existing Banking Relationships

It’s advisable to start a business bank account with the provider you already work with. Banks often reward loyal customers with perks such as fee waivers, preferential pricing, or specialized guidance. 

Using an existing relationship can also make opening a new account easier. Your prior history may speed up approvals and reduce paperwork, making banking smoother and more efficient for your business.

Product Availability

Outside of your daily chequing needs, look at whether the bank provides other services your business might use, like loans, credit cards, savings accounts, or investment options. Not only does consolidating your banking in one place make managing finances easier, but it also helps you build a stronger relationship with your bank. Over time, this loyalty can translate into perks such as better rates, reduced fees, and more personalized service.

Interest

Though interest should never be your priority when evaluating business bank accounts, they’re still a useful perk. Interest-earning business chequing accounts help you grow your funds passively without the need to transfer money to a separate savings account. This gives you full access to your earnings at all times. 

However, interest-earning chequing accounts are typically offered by digital banking alternatives, which means earning interest often means sacrificing access to physical services. None of the big five banks offers interest-earning chequing accounts. 

Best Overall: RBC Digital Choice Business Account

Monthly Fee	$6 per month
Minimum Monthly Balance Requirement for Fee Rebate	N/A
Electronic Debit and Credit Transaction Allowance	Unlimited
Paper Debit or Credit Transaction Fee	$2.50 per item
Monthly Cash Deposit Allowance	N/A
Excess Cash Deposit Fee	$5.00 per $1,000 (branch)$2.25 per $1,000 (ATM)
Supports Online Application?	Yes
Remote Customer Support Options	Virtual assistant or phone support

The RBC Digital Choice Business Account provides excellent value-for-money for the modern sole proprietor. It manages to keep monthly fees at a low $6 by prioritizing digital transactions, offering unlimited electronic debits and credits while charging a $2.50-per-item fee for paper debits and credits. This allows you to accommodate any volume of digital transactions without sacrificing your support for paper transactions.

However, one of the biggest advantages of opening an RBC account is that it scores you promotional deals with Ownr, a business registration and management platform that provides expert assistance on common business setup and management tasks. Because Ownr belongs to RBC Ventures, it grants discounts to RBC business account holders. Sole proprietors with RBC business accounts can waive the one-time $49 fee for Ownr’s sole proprietor registration services, earning free help with tasks like government fees, business name searches, and business registration documents.

Best for Product-Based Sole Proprietors: CIBC Advanced Business Operating Account

Monthly Fee	$40
Minimum Monthly Balance Requirement for Fee Rebate	$35,000
Monthly Transaction Allowance	100 transactions
Excess Transaction Fee	$1.00 for self-service transactions$1.25 for full-service transactions
Monthly Cash Deposit Allowance	$15,000
Excess Cash Deposit Fee	$2.25 per $1,000 (CIBC ATM)$2.50 per $1,000 (branch or non-CIBC ATM)
Supports Online Application?	Yes
Remote Customer Support Options	Virtual assistant, email, or phone support

Retail businesses typically deal with a higher volume of transactions than service-based businesses. This includes cash transactions, an area many digital-focused business bank accounts no longer accommodate. That’s why our top choice for the best business bank account for product-based sole proprietors is CIBC’s Advanced Business Operating Account. This account includes a modest mix of non-cash and cash transactions, with a monthly transaction allowance of 100 and a monthly cash deposit allowance of $15,000. 

In CIBC, transactions refer to:

• Debits: Withdrawals, cheque payments, pre-authorized payments, bill payments, Interact Direct Payments, Interac e-Transfer payments, direct deposits, and transfers to other accounts.
• Credits: Deposits, pre-authorized payments, bill payments, Interac Direct Payments, Interac e-Transfer payments, and direct deposits and transfers from other accounts (except transfers from CIBC business accounts)

CIBC charges a $40 monthly fee, which is waived with a $35,000 minimum balance. While this fee is higher than that of digital-first business accounts, the balance requirement is reasonable for businesses with the transaction volume this account is designed to support. The fees for excess transactions are also lower than what cheaper accounts typically charge. 

Best for Service-Based Sole Proprietors: BMO eBusiness Plan

Monthly Fee	$0
Minimum Monthly Balance Requirement for Fee Rebate	N/A
Electronic Debit and Credit Transaction Allowance	Unlimited
Excess Transaction Fee	N/A
Monthly Cash Deposit Allowance	N/A
Excess Cash Deposit Fee	$2.25 per $1,000
Supports Online Application?	Only for sole proprietors
Remote Customer Support Options	Virtual assistant, in-app secure messaging, or phone support

The BMO eBusiness Plan is the best account for service-based sole proprietors. It has no monthly fee and offers unlimited electronic debit and credit transactions, making it ideal for freelancers, contractors, and other self-employed professionals who primarily transact online. The account also supports pay-per-use cash deposits to accommodate occasional cash-handling needs.

In BMO, electronic transactions refer to self-service transactions conducted without assisted service from a branch or live phone support. They can be completed via online banking, mobile app banking, ATM, or interactive voice response phone banking. 

Best for Professionals: ScotiaBank Professional Plus Plan Account

Monthly Fee	$38
Minimum Monthly Balance Requirement for Fee Rebate	$N/A
Monthly Transaction Allowance	110
Excess Transaction Fee	Varies by service type type
Monthly Cash Deposit Allowance	$3,000
Excess Cash Deposit Fee	Varies by service type
Supports Online Application?	Yes
Remote Customer Support Options	Virtual assistant or phone support

The Scotiabank Professional Plan Plus Account is the best business account for professionals. Its generous allowances for both cash and daily transactions can adequately accommodate the high volumes of activity professionals typically deal with. It charges a monthly fee of $38, which is an attainable amount for most professionals. 

However, Scotiabank’s best-selling point is its professional banking services. The bank provides customizable banking product bundles for the following types of professionals:

• Physicians
• Dentists
• Veterinarians
• Optometrists
• Pharmacists
• Lawyers
• Accountants
• Architects and engineers
• Other professionals

These packages offer bundled pricing on select business banking products, including chequing and savings accounts, lines of credit, loans, credit cards, leasing options, and cash management solutions. They also connect you with industry specialists who can provide guidance on banking and product selection. 

Best for Online-Only Sole Proprietors: EQ Bank Business Account

Monthly Fee	$0
Minimum Monthly Balance Requirement for Fee Rebate	N/A
Monthly Transaction Allowance	50 outgoing Interac e-Transfers, 100 incoming Interac e-Transfers, unlimited bill payments, and unlimited mobile cheque deposits
Excess Transaction Fee	$0.50
Monthly Cash Deposit Allowance	N/A
Excess Cash Deposit Fee	N/A
APY	2.25%
Supports Online Application?	Yes
Remote Customer Support Options	Phone or chat support

If you transact exclusively online, the best business bank account is the EQ Business Bank Account. This account charges no monthly fee and offers unlimited bill payments and mobile cheque deposits. It also comes with 50 free outgoing Interac Transfers and 100 incoming Interac Transfers, which is more than enough to accommodate the activity of service-focused sole proprietors. 

However, EQ Bank’s best-selling point is that it earns interest on chequing deposits. This puts it a step ahead of traditional banks, which typically only offer interest on savings accounts and investment products. Meanwhile, EQ Bank applies 2.25% interest to your total closing balance daily, earning you a modest sum of passive income. 

EQ Bank also offers a handful of useful business tools, including:

• Multiple sub-accounts: EQ Bank allows you to open up to 10 separate sub-accounts, making it easier to organize funds for specific uses like taxes, operating costs, or payroll.
• Automated bill payments: You can set up recurring payments to vendors and service providers, helping ensure bills are paid on time and maintaining strong relationships.
• Online tax remittances: EQ Bank supports online payments to the CRA, allowing you to manage tax obligations directly through your account.

Best for Sole Proprietors with International Transactions: Wise

Monthly Fee	$0
Minimum Monthly Balance Requirement for Fee Rebate	N/A
Monthly Transaction Limit	Unlimited
Transaction Fee	Varies by transaction
Monthly Cash Deposit Allowance	N/A
Excess Cash Deposit Fee	N/A
Supports Online Application?	Yes
Remote Customer Support Options	Email, phone, or chat support

Wise is a global leader in international transfers. Unlike most banks, which use expensive wire transfers to move funds across borders, Wise has built a strong network of local banks across the globe, allowing customers to initiate cheap international transfers and make transactions in their markets of choice.

For this reason, the Wise Business Account is the best account for sole proprietors with international transactions. The account lets you send and receive money internationally, hold balances in multiple currencies, and connect to local banking systems in the markets you serve. Additionally, before you complete a transfer, Wise shows you the service fee, the amount you send, and the amount the recipient receives after conversion. This upfront pricing keeps costs predictable and reduces losses from currency exchange.

FAQs

Is opening a business bank account a legal requirement?

In Canada, sole proprietors are not required to open business bank accounts. However, banks often require separate business bank accounts for businesses registered for GST, HST, or Payroll. Additionally, business bank accounts grant many legal protections and privileges, such as personal credit protection, proof of professional operations, and a clear business transaction history.

What do sole proprietors need to open a business bank account?

Sole proprietors typically need to include the following documents in their business bank account applications:

• Personal identification: One or more government-issued IDs, such as a driver’s license, passport, or permanent resident card.
• Business registration documents: If you are registered under a different business name, you must provide your master business license or a trade name certificate. 
• Social Insurance Number (SIN) or CRA Business Number (BN): You must provide your SIN for credit and identification purposes. If you are GST, HST, or payroll-registered, you must also provide your CN. 
• Business contact address: Banks also ask for your business address, phone number, email address, and other business contact details.

The application process may also request additional information, such as your yearly revenue, industry, and how you plan to use your account. 

How much does it cost to maintain a business bank account in Canada?

Monthly fees for sole proprietor business bank accounts typically fall in the $5 to $20 range. Most come with unlimited digital transactions and around 10 to 20 paper transactions. Each excess transaction will cost about $1 to $2.5. 

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