To open a business bank account in Ontario, you need valid government photo IDs and the documents that prove your business exists. For a sole proprietorship that usually means your Business Name Registration, for a partnership it means your registration and partnership agreement, and for a corporation it means your articles of incorporation plus a recent corporate profile report or certificate of status.
Banks are required by federal law to verify these documents and to identify everyone who owns 25 percent or more of the business before they open the account. Arriving with a complete package is often the difference between opening the account in one visit and making a second trip. This guide explains what each business structure needs, what the bank will ask about ownership, how we prepare clients at our firm, and the mistakes that cost business owners time and money.
Do you legally need a separate business bank account in Ontario?
For a corporation, treat the answer as yes. A corporation is a separate legal person, so its money is not your money. Revenue earned by the corporation should be deposited into an account in the corporation’s name, and its expenses should be paid from that account. Running corporate income through a personal account blurs the separation that limited liability depends on, creates shareholder loan complications with the Canada Revenue Agency, and makes your records difficult to defend in an audit or a lawsuit.
For a sole proprietorship, no statute forces you to open a separate account, because you and the business are the same legal person. There are still two practical reasons to do it. First, if you registered an operating name, customers will write cheques payable to that name, and a bank will not deposit them into your personal account. Second, the CRA expects you to keep business records that support your tax filings, and a dedicated account makes that far easier.
For a partnership, a shared account in the partnership’s name is the practical standard. The partnership agreement should say who has signing authority and what happens when a partner leaves.
One note for readers coming from American guides. Canada has no LLCs. If you see banking advice written for an LLC, the closest Ontario structures are a corporation or a limited liability partnership. Our guide to choosing a business structure explains the differences.
Why does the bank ask for so much paperwork?
The document requests are not bank policy alone. They are federal law. Under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act, a bank must confirm that a corporation or other entity actually exists before opening an account. It does this by reviewing a record that shows the entity’s name, address, and directors, such as a certificate of incorporation, the articles, or a recent record from a government corporate registry.
The bank must also take reasonable measures to identify every beneficial owner who directly or indirectly owns or controls 25 percent or more of the business. If the bank cannot verify the entity or its owners, it is not allowed to open the account. FINTRAC’s guidance on verifying entities sets out these rules. Knowing this in advance changes how you prepare. The goal is to hand the bank a package that answers every question the law requires it to ask.
What documents do you need to open a business bank account?
The core requirements by structure look like this. Individual banks add their own forms, so call the branch before you go, but this table covers what Ontario banks consistently ask for.
| Business structure | What the bank typically asks for | Where it comes from |
|---|---|---|
| Sole proprietorship | Government photo IDs, your Business Name Registration if you use a trade name, and your CRA business number if you have one | Ontario Business Registry and the CRA |
| Partnership | Photo IDs for the partners, the business name registration, the partnership agreement, and the names and addresses of all partners | Ontario Business Registry and your lawyer |
| Ontario corporation | Photo IDs for signing officers, articles of incorporation, a recent corporate profile report or certificate of status, the names of directors and beneficial owners, and a banking resolution | Ontario Business Registry and your corporate minute book |
Sole proprietorships
If you operate under your own legal name, most banks can open a basic account with your photo ID and your Social Insurance Number, since the business income is reported on your personal tax return. If you operate under any other name, register it under the Business Names Act through the Ontario Business Registry and bring the Business Name Registration document. Our article on the sole proprietorship covers the registration steps.
Corporations
This is where preparation matters most. Banks generally ask for the following.
- Articles of incorporation. The founding document filed when the company was created. Read more about what the articles of incorporation contain. If the articles were ever amended, bring the amendments too.
- A recent corporate profile report or certificate of status. Ordered from the Ontario Business Registry, a profile report costs 8 dollars and a certificate of status costs 26 dollars as of July 2026. Many banks want the document dated within the last 30 to 60 days, so order a fresh one rather than relying on the copy from your incorporation.
- A banking resolution. A directors’ resolution that authorizes the corporation to open accounts and names who can sign. Banks usually have their own form, and a properly organized corporate minute book already contains the authority that form relies on.
- Ownership information. The names, addresses, and dates of birth of the directors and of every shareholder who holds 25 percent or more of the corporation.
Partnerships
Bring the registration, the partnership agreement, and identification for the partners who will sign on the account. The bank will ask for the full ownership structure, including each partner’s name, address, and occupation. If you have no written partnership agreement, expect friction, both at the bank and later between partners. A short agreement that covers signing authority, contributions, and exits solves problems before they start.
What will the bank ask about ownership and control?
For corporations, the ownership questions have a second layer that many owners have not heard of. Since January 1, 2023, private Ontario corporations must maintain a register of individuals with significant control, often called a transparency register. It records everyone who holds 25 percent or more of the corporation’s voting rights or share value, or who has control in fact, along with their date of birth, address, and jurisdiction of tax residence.
The register is not filed with the government and is not public, but the corporation must keep it current, and directors who knowingly allow the corporation to ignore the requirement face fines of up to 200,000 dollars. Here is the practical connection to banking. The information your bank must collect about beneficial owners is essentially the same information the register holds. A corporation with a current transparency register can answer the bank’s ownership questions in minutes.
Which type of business account should you choose?
Most businesses end up with more than one account. The table below shows the common types and what to compare before you sign.
| Account type | What it is for | What to compare |
|---|---|---|
| Business chequing | Daily deposits, bill payments, and payroll | Monthly fee, number of included transactions, and fees for electronic transfers and deposits |
| Business savings | Setting aside HST, payroll deductions, and tax instalments | Interest rate and transfer limits between accounts |
| US dollar account | Businesses that bill customers or pay suppliers in US funds | Conversion spreads and wire transfer fees |
| Merchant services | Accepting debit and credit card payments | Rates per transaction, monthly minimums, and terminal costs |
| Business credit card or line of credit | Short term cash flow and expense tracking | Interest rate, annual fee, and whether a personal guarantee is required |
Two practical notes. First, a separate savings account for the HST you collect and the payroll deductions you withhold keeps that money away from operating cash, which is the single best habit for avoiding a painful remittance shortfall. Second, expect the bank to ask a new corporation for a personal guarantee on credit products. A new corporation has no credit history of its own, so the bank looks to yours.
What mistakes do business owners make with business bank accounts?
These are the problems that bring people to our office, usually after the fact.
- Running corporate revenue through a personal account. Every deposit becomes a bookkeeping question and a potential shareholder benefit issue with the CRA. Cleaning up two years of mixed transactions routinely costs more in accounting fees than incorporating properly would have.
- Opening the account before the business name or corporation is final. If the name on the account does not match the name on the registration or the articles, the bank may hold deposits or make you close and reopen the account.
- Arriving without a current registry document or an organized minute book. The account does not get opened that day, and for a corporation with several shareholders, chasing down beneficial ownership details can add weeks.
- Failing to register an operating name. Cheques payable to a trade name you never registered cannot be deposited anywhere, and carrying on business under an unregistered name is itself an offence under the Business Names Act.
- Never updating the bank. When directors, signing officers, or addresses change, the bank’s records and your corporate records need to change together. Stale signing authority is a common reason payments get held at the worst possible moment.
Frequently asked questions
Can I use my personal bank account for a sole proprietorship?
If you operate under your own legal name, the law does not stop you, but it is a poor habit. The CRA expects records that clearly support your business income and expenses, and separating them in a dedicated account is the simplest way to do that. The moment you use a trade name, a separate account becomes a practical necessity, because cheques payable to the trade name will not clear through a personal account.
Do I need a CRA business number before opening the account?
Not always. Sole proprietors can usually open an account without one. Corporations receive a business number from the CRA after incorporation, and most banks ask for it, so have it on hand. Keep in mind that the business number and the Ontario company key are different things. The business number is the CRA’s tax identifier, while the company key is the PIN that lets you transact in the Ontario Business Registry.
Can I open the corporate account the same day I incorporate?
Sometimes, but do not count on it. Electronic articles often come back quickly, and some banks will open an account on the articles and your ID alone. Many branches also want a profile report or certificate of status and a completed banking resolution, and every bank must collect the beneficial ownership details. Booking the bank appointment for a few days after incorporation, once the minute book is organized, is the smoother path.
Do all the directors and shareholders need to come to the bank?
Usually only the people who will sign on the account need to attend with photo ID. The bank still needs identifying information for every beneficial owner at 25 percent or more, including the ones who stay home, so gather names, addresses, and dates of birth in advance.
What is a banking resolution?
It is a resolution of the directors authorizing the corporation to open bank accounts and naming the people who can sign cheques and give instructions. Banks have their own standard form, but the form only works if the people signing it actually hold the offices it says they hold, which is what a properly organized minute book establishes.
When do I need to open an HST account?
Registration for HST becomes mandatory once your worldwide taxable revenues pass 30,000 dollars over four consecutive calendar quarters, which the CRA calls the small supplier threshold. Many businesses register earlier to claim input tax credits. Either way, once you collect HST, keep it in a separate account so the money is there when the remittance is due, and confirm the current threshold with the CRA before relying on it.
This article is general information about Ontario law, not legal advice. Banking requirements, government fees, and thresholds change, and the figures above are current as of July 2026. The right answer always depends on your circumstances, so please speak with a lawyer about your situation. The information provided above is of a general nature and should not be considered legal advice. Every transaction or circumstance is unique, and obtaining specific legal advice is necessary to address your particular requirements. Therefore, if you have any legal questions, it is recommended that you consult with a lawyer.
