The sole-proprietor version: SIN vs business number, what the bank needs when you have no incorporation documents, the business-name registration that unlocks the account, and what it costs.
Applies in: across Canada
As a sole proprietor you are the business, legally speaking, so the bank account question is simpler than for a corporation and confusing in different ways. The short version: gather your photo ID and SIN, register your business name if you use anything other than your own name, pick an account whose fees match how clients actually pay you, and understand that no account you open builds a separate business credit file — your personal credit is the file that counts.
The document list is the clearest difference between business structures. For a corporation the bank verifies a company: articles of incorporation, board resolutions, directors' IDs. For you, the bank verifies one person.
| Sole proprietor | Corporation |
|---|---|
| Government-issued photo ID | Government-issued photo ID for every director and signatory |
| SIN (you are the business) | CRA Business Number |
| Trade name registration or Master Business Licence (only if you use a business name) | Articles and certificate of incorporation |
| BN only if you already have one | Board resolution authorizing the account |
| Proof of address | Proof of business address |
That asymmetry is the whole point of this guide: you do not need the corporate stack, and the bank does not expect it. Sources that confirm the sole-prop list specifically include Wise's Canada business-account guide (sole proprietors need photo ID plus SIN or BN, versus the full corporate list) and Finder's Canadian requirements guide (trade name registration or Master Business Licence for sole proprietors).
Most new sole proprietors stall here, because the two numbers sound interchangeable and are not.
Your Social Insurance Number is what you bring to the bank as the owner. Several banks let sole proprietors open a small-business account with just ID and a SIN, precisely because the account holder is a person, not an entity. Your SIN is also what the CRA requires from you if you ever register for a program account (the CRA lists the requester's SIN among the required registration details).
The Business Number is a 9-digit CRA identifier that only exists once you register for a program account: GST/HST, payroll deductions, or import/export. Under the $30,000 small-supplier threshold with no employees, you almost certainly have no BN, and that is normal. The bank asks for it only if you have one.
Practical rule: never delay opening the account because you lack a BN. Open with your SIN; the BN appears later if and when you register for GST/HST. Our guide to registering a sole proprietorship and GST/HST covers the $30,000 rule and what triggers a BN.
There are two cases, and they determine everything about the account:
You operate under your own name. If the business is exactly "Jane Smith" with nothing added, most provinces do not require you to register the name, and the bank does not require a certificate either — your photo ID covers it. This is the simplest possible setup, and it is why many freelancers run for years without a formal business account.
You operate under any other name. "Jane Smith Cleaning Co." triggers provincial registration in most provinces, and the certificate it produces is the document the bank will ask for. Registration is cheap: typically $40 to $80 depending on the province, with Ontario's Master Business Licence about $60 online through the Ontario Business Registry. BC registrants go through BC Registries (about $40 to register, plus a $30 name request when you need one — $70 all-in). Register the name first, then open the account — a missing certificate is the most common reason for a wasted bank visit.
Answer honestly, because the wrong answer costs you a monthly fee for nothing:
| Situation | Verdict |
|---|---|
| Clients pay you under your own name, by e-Transfer or direct deposit | A free second personal account is fine |
| Clients pay under your registered business name | You need a business account in that name — payee-name matching |
| You want CRA-proof records for a T2125 | One dedicated account (business or second personal) keeps audit records clean |
| You invoice from the business name and want it to read as established | Business account, for the optics |
| Cash or paper cheques arrive regularly | Business account, and price the deposit fees per item |
The CRA does not require a separate account, and business income is reported on your personal return (form T2125) under your SIN either way. But when every business transaction flows through one account, bookkeeping and any future audit get dramatically simpler.
Sole proprietors are usually low-volume, which changes the math. Verified figures from the banks' own published schedules — BMO's Essential Business Account at $5 a month and Scotiabank's Right Size schedule at $6 — checked November 9, 2026 in our business bank account guide (confirm before you open, since banks change these):
| Account | Monthly fee | Best for |
|---|---|---|
| BMO Essential Business Account | $5 | Electronic payments, few branch visits: unlimited electronic and ATM transactions |
| Scotiabank Right Size account for business | $6 | Low volume: pay per transaction ($1.25 each for the first 15 a month) |
The pattern to notice: a $6 pay-per-transaction plan can cost less in practice than a higher flat fee with bundled transactions you never use. If you are paid mostly by e-Transfer and rarely touch cash, price the e-Transfer and per-item fees first and the headline fee second. Credit unions are worth a quote if you like branch service, and digital-first business accounts suit founders who never want to visit a branch. For all of these against the full 2026 field — including the $0 digital accounts and the e-Transfer allowances side by side — see our comparison of the best business bank accounts for new businesses.
A corporation builds its own credit file. You do not get one. As a sole proprietor there is no separate business credit history: when you apply for a business credit card, line of credit, or loan, the lender pulls your personal credit file. The account itself does not report to the bureaus the way a loan does.
Two consequences follow. First, a long, clean banking relationship still helps — it is what the bank's own lending team looks at later. Second, protecting your personal credit is protecting your business's access to credit. Our guide to building credit in Canada covers the personal-credit side, which matters just as much for you as for anyone else.
| BMO Essential Business Account | $5/month |
|---|---|
| Scotiabank Right Size account for business | $6/month |
| Ontario Master Business Licence (business-name registration) | ~$60 one-time |
Account fees checked November 9, 2026 from the banks' published schedules; confirm before you open.
No. A sole proprietorship is not a separate legal entity, so no law requires a separate account. The practical trigger is payments: a cheque or transfer payable to your business name generally cannot be deposited into a personal account in your own name. If every client pays you under your own name by e-Transfer, a second personal account is a legitimate starting point.
Often yes. Several banks let sole proprietors open a small-business account with just government ID and a Social Insurance Number, because you are the business. You only get a CRA Business Number when you register for a program account like GST/HST, payroll, or import/export, which usually means passing the $30,000 small-supplier threshold first. No BN yet is normal, not a problem.
Government-issued photo ID and your SIN are usually enough, because the name on the account matches the name on your ID. The document that unlocks everything else is the business-name registration, which you only need when you operate under any name other than your own legal name.
No articles of incorporation, no certificate of incorporation, no board resolution authorizing the account, no directors' IDs, and no partnership agreement. That whole stack of corporate paperwork is replaced by one thing: your trade name registration or Master Business Licence, plus your own ID. The bank is verifying one person, not a company.
Not the way it does for a corporation. A sole proprietor has no separate credit file, so lenders look at your personal credit history when you apply for business credit. The account itself does not report to the bureaus like a loan does. Keep your personal credit clean; that is the credit file that matters for your business.
Entry-level business chequing runs about $5 to $6 a month as of November 2026: BMO's Essential Business Account is $5 a month with unlimited electronic transactions, and Scotiabank's Right Size account charges the greater of $6 a month or your per-transaction total ($1.25 each for the first 15 a month). Low-volume sole proprietors often pay less in practice on a pay-per-transaction plan than on a higher flat fee with bundled transactions they never use. Confirm the current schedule before you open; banks change these.
Only if you want to deposit money payable to the business name. Banks match the payee name to the account holder, so a cheque payable to your registered business name generally cannot go into an account held in your personal name. If you invoice and get paid under your own name, the account in your name works fine.
No, and mixing them up wastes a trip to the bank. The Master Business Licence is a provincial document that registers your business name (Ontario charges about $60 online). The Business Number is a federal CRA identifier issued when you register for GST/HST, payroll, or import/export. The bank wants the licence to prove the business name; it wants the BN only if you already have one.