What to Bring to the Bank to Open an Unincorporated Business Account in Canada

Opening a bank account for your unincorporated business (sole proprietorship) is an important first step in keeping your business and personal finances organized. Whether you are a freelancer, consultant, tradesperson, online seller, or small business owner, most Canadian banks and credit unions will ask for similar documents and identification when you apply for a business account.

This guide explains exactly what to bring to the bank to open an unincorporated business account in Canada, along with practical tips from an accounting and tax perspective. At the end, you will also see how BOMCAS Canada Accounting can help you set up your bookkeeping, tax, and CRA registrations properly from day one.

Do Sole Proprietors Need a Separate Business Bank Account?

Legally, a sole proprietorship is not a separate legal entity from the owner. That means you can use a personal account in some situations, especially if you operate only under your legal personal name.

However, most Canadian banks strongly encourage (and in many cases require) a separate business account once you:

• Use a registered business or trade name
• Start accepting regular business payments (e-transfers, card payments, deposits)
• Need business credit, loans, or a business credit card
• Want clean records for bookkeeping, taxes, and CRA audits

From an accounting and tax standpoint, using a dedicated business bank account is highly recommended. It simplifies bookkeeping, makes it easier to support your expenses if the CRA reviews your returns, and helps your accountant prepare accurate financials.

1. Personal Identification for the Business Owner

The first requirement to open an unincorporated business account in Canada is valid personal identification for the owner (and any other signing authorities, if applicable).

Most banks require:

• Two valid pieces of government‑issued ID, and
• At least one piece of photo ID

Common examples include:

• Canadian driver’s licence
• Canadian passport
• Permanent Resident (PR) card
• Provincial or territorial photo ID card
• Canadian citizenship card (older style)

Make sure your ID is:

• Current (not expired)
• Original (not photocopied)
• Matches the legal name you are using for the account

If you are new to Canada, some banks may accept foreign passports or additional documents. It is always best to confirm with your branch before your appointment.

2. Business Name Registration (If Applicable)

For an unincorporated business, registration requirements depend on how you operate:

• Using your legal personal name only
  Example: “John Smith”
  • In many provinces, you do not need to register a business name.
  • In this case, a bank may open the account solely under your personal legal name.
• Using a business or trade name
  Example: “John Smith Plumbing” or “Smith Creative Studio”
  • You generally must register the business name with your provincial or territorial registry.
  • The bank will normally ask for proof of this registration.

Typical documents that banks accept for a sole proprietorship or unincorporated business include:

• Master Business Licence (MBL)
• Trade Name Registration Certificate
• Provincial business name registration document

Bring the original or official digital copy (if provided electronically by the province). The account is often opened in your legal name, with the trade name listed as “operating as” (e.g., John Smith o/a Smith Creative Studio).

3. Proof of Address

Most financial institutions in Canada require proof of your current residential address. This is part of their identity verification and compliance obligations.

Acceptable proof of address usually includes one of the following:

• Recent utility bill (electricity, water, gas, internet, etc.)
• Bank or credit card statement
• Lease agreement or rental contract
• Mortgage statement or property tax bill
• Government benefit statement or notice

Tips:

• The document should show your full name and current address.
• It should be recent, typically issued within the last 60–90 days (check your bank’s policy).
• Paper or electronic statements are often accepted; confirm with your bank in advance.

If you recently moved and do not yet have documents in your name at the new address, ask the bank what alternatives they will accept.

4. Social Insurance Number (SIN)

For a sole proprietorship, the owner’s Social Insurance Number (SIN) is often requested as part of:

• Identity verification
• Tax reporting and compliance with federal regulations
• CRA-related information the bank may need

While requirements can vary by institution, it is wise to bring your SIN with you when opening the account. The bank uses your SIN for information reporting—not to access your personal CRA account.

From a tax perspective, because a sole proprietorship’s income is reported on your personal tax return (T1), your SIN is central to identifying your business income with the CRA.

5. CRA Documentation (If Available)

Not all new unincorporated businesses in Canada will have CRA documents at the time of opening a bank account. However, if you have already registered with the CRA or your province, bring any available documents with you.

Helpful CRA and registration documents include:

• Business Number (BN) / CRA confirmation letter
  • If you have registered for a business number, bring the confirmation document or letter.
• GST/HST registration confirmation
  • If you are registered for GST/HST (for example, you exceeded or expect to exceed the 30,000 CAD small supplier threshold), bring your GST/HST account number (e.g., 123456789 RT0001).
• Other CRA program accounts, if applicable
  • Payroll (RP) number
  • Import/export (RM) number

These documents are not always mandatory to open a basic sole proprietor business account, but they:

• Help the banker set up your profile correctly
• Save time when you connect merchant services, payroll, or CRA direct deposit later
• Ensure consistency between your banking profile and CRA registration

If you are not sure whether you need a Business Number or GST/HST account, a tax professional at BOMCAS Canada can guide you based on your situation and revenue expectations.

6. Initial Deposit

Many banks in Canada require an initial deposit to open a business account. The minimum amount varies by institution and by account type, but it is a good idea to bring enough to:

• Meet the minimum opening balance requirement, and
• Cover any monthly fees or immediate transactions

This initial deposit can come from:

• Personal savings
• Existing personal accounts
• Transfers from another financial institution

From an accounting standpoint, your initial deposit is generally considered contributed capital (money you put into the business). Keeping this and all subsequent business transactions within the business account gives you a clear financial trail.

Important Notes About Unincorporated (Sole Proprietor) Business Accounts

When you open a bank account for an unincorporated business in Canada, keep these key points in mind:

• Account ownership
  • The account is typically opened in your personal legal name, often with your business or trade name added as “operating as” (o/a) or “doing business as” (DBA).
• Personal liability
  • As a sole proprietor, you are personally responsible for all obligations, debts, and overdrafts on the account. There is no legal separation between you and the business.
• Bank requirements can vary
  • Each bank or credit union may have slightly different documentation and onboarding processes. Some may allow certain steps online; others require an in‑branch appointment.
  • It is strongly recommended to book an appointment before visiting. Confirm:
    • Exactly what documents they require
    • Whether additional signers can be added
    • Any special requirements if you are a newcomer, non‑resident, or operating online only
• Separation of business and personal finances
  • Even if not legally required, maintaining a separate account for business income and expenses:
    • Makes bookkeeping and cash flow tracking much easier
    • Reduces the chance of missing deductions at tax time
    • Helps your accountant prepare accurate financial statements
    • Provides cleaner records in the event of a CRA review or audit

Checklist: What to Bring to the Bank (Sole Proprietor / Unincorporated Business)

Use this quick checklist to prepare for your appointment:

1. Two pieces of government‑issued personal ID
   • At least one must be photo ID (driver’s licence, passport, PR card, etc.)
2. Business Name Registration (if using a name other than your legal personal name)
   • Master Business Licence
   • Trade Name Registration
   • Provincial business name registration document
3. Proof of Residential Address
   • Recent utility bill, bank statement, lease, or mortgage document
4. Social Insurance Number (SIN)
5. CRA Documentation (if available)
   • Business Number (BN) confirmation letter
   • GST/HST registration confirmation
   • Any other CRA program account letters (payroll, import/export, etc.)
6. Initial Deposit
   • Funds to open the account and cover initial fees

Bringing all of the above will help ensure your account can be opened smoothly, without unnecessary delays or repeat visits.

How BOMCAS Canada Accounting Helps Sole Proprietors and Unincorporated Businesses

Opening the bank account is just the beginning of setting up a successful unincorporated business in Canada. To truly benefit from your new account, you also need proper bookkeeping, tax planning, and CRA compliance.

BOMCAS Canada Accounting Firm supports sole proprietors and unincorporated businesses across Canada with:

• Business setup and structure guidance
  • Help deciding when to remain a sole proprietor and when it may make sense to incorporate
  • Explaining how your banking setup impacts your taxes and liability
• GST/HST and CRA registration support
  • Assistance with registering for a Business Number, GST/HST, payroll, and other CRA accounts
  • Guidance on when you are required to register and how to stay compliant
• Bookkeeping and cloud accounting
  • Setting up your chart of accounts so your new business bank account is properly integrated
  • Monthly/quarterly bookkeeping so your records are up to date and audit‑ready
• Tax preparation and planning for sole proprietors
  • Preparation of your personal tax return with business income (T1 with T2125)
  • Identifying all allowable deductions and credits to legally minimize your tax bill
  • Advice on how much to set aside for tax, CPP, and GST/HST remittances
• Support for all provinces and territories
  • BOMCAS Canada serves clients nationwide, with a strong understanding of federal and provincial tax rules, industry‑specific issues, and small-business realities.

By working with an accountant who understands both banking and tax requirements for sole proprietors, you can avoid common mistakes such as mixing personal and business expenses, missing GST/HST obligations, or failing to claim legitimate deductions.

Start Your Unincorporated Business the Right Way with BOMCAS Canada

If you are planning to open an unincorporated business bank account in Canada, this is the perfect time to get professional accounting and tax support in place.

BOMCAS Canada Accounting Firm is your one‑stop solution for:

• Sole proprietorship and small business accounting
• Business and personal tax preparation
• GST/HST filing and CRA compliance
• Bookkeeping and financial reporting
• Strategic advice on when (or whether) to incorporate

For personalized guidance on what you need to open your business bank account, how to structure your records, and how to stay compliant with the CRA:

• Call: 780‑667‑5250
• Email: info@bomcas.ca
• Website: https://bomcas.ca

BOMCAS Canada works with entrepreneurs, contractors, and small business owners across Canada and can help you at every stage—from opening your first unincorporated business account to growing into a fully incorporated company.

Set your business up for success. Contact BOMCAS Canada today and get expert accounting and tax support tailored to your unincorporated business.