Open a Small Business Bank Account

Every Business Can Benefit from a Business Account

Opening a business account early on—and before you start operating—is one of the best things you can do for your business—and yourself. Explore the many pros of business accounts, the different types available and how to open your own.

Benefits of Opening a Business Account

Having a business account can help you in several ways—here are just a few of the biggest benefits:

• Easily track and control your business expenses. A separate business account helps to prevent the confusion of having to figure out which transactions are business- or personal-related.
• Simplify your tax filing at the end of the year with all your business transactions in one place. Building off the benefit above, taxes are a part of owning a business and an area where you need clear and exact numbers to report—make the process easier by having a dedicated account for your business.
• Establish your business. A business account shows suppliers, vendors, investors and customers that your business is legitimate. Put yourself in a potential customer or investors’ shoes—wouldn’t you be more comfortable spending money with a business that has an official bank account?
• Easily send and receive business-related payments. With a business account, you can pay invoices, accept payment from customers, send money and more.

When you open a business account at RBC, you can also enjoy exclusive services and offers beyond banking and start building a credit history, which can help you qualify for a business credit card or loans later on.

Who Should Open a Business Account?

At RBC, we require even sole proprietors operating under their own name to have a business account. Other financial institutions may only require you to have a business bank account if you operate under a business name. However, if you incorporate, you are legally required to have a business account as the business is a separate legal entity and can’t operate using your personal banking account.

Tip: How you structure your business can impact your tax bill, ability to raise money and more. Explore the four main types of business structures in Canada.

Types of Business Accounts

In general, there are four types of business accounts (and you can have more than one):

• Chequing accounts support the day-to-day needs of your business.
• Savings accounts can help you earn interest on your available funds while still having access to your money if you need it.
• Trust accounts are required if you need to maintain, control and manage funds on behalf of clients.
• Foreign currency accounts, such as the U.S. Dollar Business Account, help you manage foreign currency inflows and outflows without having to convert currency for each transaction.

Requirements to Open a Business Account

Once you have registered or incorporated your business, you can open a business chequing account. To do so, you’ll need a few things:

• One of three Government-issued IDs, such as a Canadian Passport, Canadian Driver's Licence or Canadian Permanent Resident Card
• A business registration document, such as:
  • Articles of Incorporation, which are legal documents submitted to the Provincial, Territorial or Federal governments within Canada and are necessary in order to establish your business as a legal entity
  • A Certificate of Existence from the Canadian government that proves your corporation exists and has not been dissolved
  • A Master Business Licence that gives you permission to operate a business under a name that’s not your own

Register your business in minutes—for less. For a limited time, get up to $300* back when you open an RBC business bank account within 60 days of registering or incorporating your business with Ownr. Services are offered in Ontario, Alberta, Quebec and British Columbia only.

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