Best Bank Account for Sole Proprietorships in Canada 2025

Running a sole proprietorship means you're operating a real business without the complexity or paperwork of incorporation. This raises an immediate question: do you actually need a business account, or can you keep using your personal banking?

While Canadian law allows sole proprietors to use personal accounts, this approach becomes problematic as your revenue grows. CRA audits become more complex when business and personal transactions mix. Your expense tracking turns chaotic. Clients question your professionalism when invoices show personal banking details. Most importantly, you miss out on tools that could save hours of administrative work and thousands in fees.

This guide compares the best banking options for Canadian sole proprietors across traditional banks and modern fintech platforms. We'll examine fees, invoicing capabilities, multi-currency support, and accounting integration to help you make an informed decision.

The right account depends on your transaction volume, international needs, and growth plans. Let's help you find the best fit for your business.

Do Sole Proprietors Need a Business Bank Account in Canada?

Sole proprietors are not legally required to open a business bank account in Canada. You can operate using your personal account as long as it's registered under your legal name or a registered business name.

However, a dedicated business account becomes necessary or highly recommended in several situations. When you register for HST/GST, the CRA requires clear separation of business and personal finances. If you accept credit card payments or need merchant services, providers typically require a business account. Building business credit separate from personal credit also requires dedicated business banking. As your transaction volume grows, personal account limits become impractical. Professional invoicing and payment tracking also demand business-specific features.

Beyond legal requirements, practical and professional reasons make business accounts valuable. Simplified tax preparation protects you during CRA audits. Professional credibility improves when clients see business account details on invoices. Expense tracking and cash flow visibility become automatic rather than manual. If you incorporate later, the transition becomes seamless. Most importantly, you protect your personal finances from business liabilities.

If you've decided a business account makes sense for your sole proprietorship, the next question becomes which provider offers the best value for your specific needs.

Top Business Bank Accounts for Sole Proprietors in Canada (2025)

Sole proprietors have different needs than incorporated businesses. You need low fees since you're watching every dollar, easy setup without complex corporate documentation, and features that scale with you like invoicing, expense management, and multi-currency support if you work internationally. Here's how the top options compare.

Quick Comparison: Best Accounts for Sole Proprietors

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1. Venn Multi-Currency Business Account

Venn is a modern financial platform built specifically for Canadian businesses, including sole proprietors. Unlike traditional banks that require separate products for cards, international transfers, and expense tools, Venn consolidates everything into one streamlined interface.

Best for: Sole proprietors who invoice clients, work with international customers, or need professional payment infrastructure without premium bank fees.

Key Features:

• $0 monthly account fee on Essentials plan

• Real CAD and USD accounts with local account details and 2% interest

• Free unlimited Interac e-Transfers® (only fintech in Canada offering this)

• 1% unlimited cashback on corporate card spend

• Multi-currency accounts (CAD, USD, GBP, EUR)

• 0.25% FX conversion rates (vs. 2.5-3% at banks)

• Built-in invoicing and expense management

• Two-way sync with QuickBooks and Xero

• No branch visits required, fully online onboarding

Venn addresses the core pain points sole proprietors face: high fees for basic services, complicated international payments, and disconnected tools for invoicing and expense tracking. The platform's real Canadian account infrastructure means you can pay taxes, bills, and even run payroll, something most fintech alternatives can't support.

2. BMO eBusiness Plan

BMO's eBusiness Plan is the only no-fee business account offered by a major Canadian bank. It's designed for sole proprietors who operate entirely online and don't need cash deposit services or frequent Interac e-Transfers®.

Best for: Online-only sole proprietors with straightforward domestic banking needs and minimal e-Transfer usage.

Key Features:

• $0 monthly fee

• Unlimited electronic transactions

• 2 free Interac e-Transfers® per month ($1.50 each after)

• Unlimited Moneris deposits for merchants

• No minimum balance required

• No cash deposits allowed

• Requires in-branch appointment to open

The main limitation is that you'll pay for every e-Transfer after the first two, which adds up quickly if you're paying contractors or vendors regularly. There's also no multi-currency support, no built-in invoicing, and FX fees hover around 2.9% for any international transactions.

3. TD Basic Business Plan

TD's Basic Business Plan targets sole proprietors in the earliest stages, those testing a business idea or running a side hustle with very few monthly transactions. The $5 monthly fee is among the lowest at traditional banks.

Best for: Part-time sole proprietors or side hustlers with fewer than 5 transactions per month.

Key Features:

• $5 monthly fee

• 5 free transactions per month

• $1.25 per additional transaction

• $2.50 per $1,000 cash deposited

• No minimum balance required

• No free Interac e-Transfers®

• No accounting software integration

This account becomes expensive fast once you exceed the transaction limit. If you're processing more than a handful of payments monthly, the per-transaction fees will quickly surpass the value of the low monthly fee. There's also no support for USD accounts, no invoicing tools, and no cashback on spending.

4. RBC Digital Choice Business Account

RBC's Digital Choice account is positioned as a modern, online-friendly option for small businesses and sole proprietors. At $6 per month, it offers unlimited electronic transactions and a modest number of free e-Transfers.

Best for: Sole proprietors comfortable with digital banking who occasionally need in-branch support.

Key Features:

• $6 monthly fee

• Unlimited electronic debit and credit transactions

• Unlimited mobile cheque deposits

• 10 free Interac e-Transfers® per month ($1.50 each after)

• No minimum balance required

• Can open online in under 15 minutes (requires branch visit to activate)

While the unlimited electronic transactions are appealing, the account lacks modern features like multi-currency support, automated accounting sync, or any form of cashback. FX fees remain high (2.5-3%), and there's no built-in invoicing or expense management functionality.

5. Wise Business Account

Wise is a UK-based fintech platform that excels at international money movement. For sole proprietors who work with clients or vendors in multiple countries, Wise offers local account details in 40+ currencies and transparent, low-cost FX conversions.

Best for: Freelancers and consultants working internationally who prioritize low FX fees over domestic Canadian banking features.

Key Features:

• $0 monthly fee

• One-time $55 setup fee for full features

• Hold and convert 40+ currencies

• Local account details in CAD, USD, GBP, EUR, and more

• Mid-market exchange rate with 0.4-0.6% conversion fees

• Integration with QuickBooks, Xero, and Wave

• No Canadian Interac e-Transfer® support

• No cashback on spending

Wise's biggest limitation for Canadian sole proprietors is the lack of Interac e-Transfer® support, which is how most Canadian businesses pay contractors and receive domestic payments. There's also no built-in invoicing beyond basic tools, and you can't use Wise to pay Canadian taxes or run payroll through traditional channels.

How to Choose the Right Bank Account for Your Sole Proprietorship

The best account for your sole proprietorship depends on three factors: your transaction volume, whether you work internationally, and how much administrative automation you need. Here's what to prioritize.

Consider these critical factors:

• Transaction volume: Count your monthly payments, invoices, and transfers. Accounts with transaction limits become expensive fast.

• International needs: If you invoice in USD or pay foreign vendors, prioritize multi-currency accounts with low FX fees (under 1%).

• Interac e-Transfer® usage: Most Canadian businesses rely on e-Transfers. Unlimited free e-Transfers save significant money.

• Accounting integration: Two-way sync with QuickBooks or Xero eliminates hours of manual bookkeeping.

• Invoicing capabilities: Built-in professional invoicing saves money on separate software subscriptions.

• Growth trajectory: Choose an account that scales with you, especially if you plan to incorporate later.

• Payment acceptance: If you use Stripe, Shopify, or PayPal, look for platforms that reduce cross-border fees.

Most sole proprietors underestimate their transaction volume and end up paying more in per-transaction fees than they would with an unlimited account. Similarly, hidden FX markups on even occasional USD transactions can cost hundreds or thousands annually. The right account eliminates these surprise costs while providing the professional infrastructure to run your business efficiently.

Interested in learning about the best credit card for sole proprietors in Canada? Read our blog!

Why Venn Is the Best Business Account for Canadian Sole Proprietors

Sole proprietors need an account that works as hard as they do, without the premium fees or complexity designed for large corporations. Venn was built specifically to address the gap between expensive traditional bank accounts and limited fintech alternatives.

Unlike traditional banks that charge for basic services like e-Transfers or force you to open separate USD accounts, Venn includes everything in one platform. You get real local CAD and USD accounts (not just virtual ones), meaning you can send and receive ACH payments, pay Canadian taxes and bills, and even run payroll as you grow. Free unlimited Interac e-Transfers® eliminate the $1.50 per-transfer fees that add up to hundreds monthly at other providers.

For sole proprietors who work internationally or invoice in multiple currencies, Venn's 0.25% FX rate saves thousands compared to the 2.5-3% banks charge. The platform's built-in invoicing, expense management, and automatic QuickBooks/Xero sync replace multiple software subscriptions, while the 1% unlimited cashback on all card spend puts money back in your pocket. Most importantly, you can open your account entirely online in minutes, no branch visits or complex paperwork required.

Conclusion

As a sole proprietor, your banking needs are unique. You need the professionalism and infrastructure of a business account without the fees and complexity designed for large corporations. While traditional banks offer familiar names and branch access, their fee structures and limited digital features weren't built for modern solo entrepreneurs who need to move fast, work internationally, and automate administrative tasks.

Venn provides the most complete solution for Canadian sole proprietors who want to operate like a professional business without paying premium bank fees. With no monthly fees, unlimited free e-Transfers, real multi-currency accounts, built-in invoicing and expense management, and the lowest FX rates in Canada, Venn eliminates the trade-offs that force sole proprietors to choose between affordability and functionality.

‍Open your Venn account today and start banking like the business you're building.

Frequently Asked Questions About Sole Proprietor Bank Accounts in Canada

Q: Am I legally required to open a separate business bank account as a sole proprietor in Canada?

Legally, if you operate under your own legal name, you can use your personal account. However, if your business has a registered trade name different from your own, you are legally required to open a separate business account. Even when not required, separating finances simplifies tax preparation and protects you during CRA audits.

Q: What documents do I need to open a sole proprietor business account?

You typically need valid photo ID, your Social Insurance Number (SIN) or Business Number (BN) from the CRA, and your trade name registration certificate or master business licence. Requirements vary, but modern platforms like Venn allow completely online onboarding without the need for an in-branch visit.

Q: What is the true cost of a sole proprietor bank account in Canada?

While many accounts advertise a low or $0 monthly fee (e.g., BMO's eBusiness Plan), the true cost comes from hidden fees. Watch out for per-transaction charges, Interac e-Transfer® fees ($1.50+), and especially high Foreign Exchange (FX) markups (2-3%). Providers like Venn offer free unlimited e-Transfers and the lowest FX rates (0.25%) to minimize these hidden costs.

Q: Can sole proprietors get multi-currency business accounts?

Yes. Unlike traditional banks which typically require separate, fee-heavy USD accounts, modern platforms like Venn offer integrated multi-currency accounts. Venn provides local CAD, USD, GBP, and EUR accounts under a single login, which is essential for freelancers and businesses with international clients.

Q: What is the difference between a sole proprietor account and a corporate account?

Sole proprietor accounts are simpler to open as you and your business are legally the same entity. Corporate accounts require official incorporation documents and articles of incorporation. Sole proprietor accounts often have simpler requirements and may have fewer features than those designed for large corporations.

Venn is a technology company and not a bank or financial institution. Funds are safeguarded by Venn's banking partners and covered under CDIC insurance protection. ®Registered trademark of Interac Corp. Used under license. Based on internal analysis of total markups and FX fees charged by major Canadian financial institutions as of November 2025.

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**Disclaimer:** This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Venn Software Inc or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional. We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.