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Do you need an account for small business? - A nice list
May 13, 2021
6:07 am
KamWest
Toronto
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Forum Posts: 318
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December 20, 2019
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I run as a sole proprietor and Simplii threatened to close down my account because I use a debit card machine in business and they disallowed me to deposit it daily. I was told shut it down or they will lock my accounts.

I explained to them I operate as a sole proprietor from home under my own name but they would have no part of it.

So I tried RBC and the fees on their so called digital NO FEE account were just stupid. Then I tried CIBC and even with a business package fee there were always additional charges for source deductions or HST payments.

I ended up at Meridian Credit Union and have no fees ever if my balance is over 25k. I also opened a business savings where I keep most of the operating funds above 25k that pays .5% interest.

The thing about Meridian is it has the easiest interface I have ever seen and ever the government hst, source deductions interface is the sweetest thing I have ever used. The back end for taxes and stuff is actually run by telus (imagine that) but I have never used something so slick and easy in all my life.

Here is a great articles which talks about small business account options
https://ontariobusinessgrants.com/financing/best-small-business-bank-account-canada/#:~:text=and%20month%2C%20though.-,Motusbank,proprietorships%20can%20use%20these%20efficiently.

The only problem with that article is they are missing Meridian CU which I find disappointing. Instead they mention Motus and I'm pretty sure Motus would shut down anything with business.

That said when you open a new account at motus it asks you if you are opening for business or personal so maybe they do allow a sole proprietor using their own name. That will bear further investigation.

May 13, 2021
7:20 am
Koogie
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November 19, 2014
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Yup. Welcome to the "business" markup.

Anything with business in the name automagically becomes more expensive. A lot of it is just profit taking. Wait until you incorporate (if you ever need to). That's when they really sink the hooks into you.

Thanks for the feedback on Meridian CU. I have a couple of business GICs with them and find them generally okay to deal with.

By the by, I maintain a list on here somewhere of banks and CU that will accept GICs and term deposits from small businesses, if that is ever of use to you.

Cheers.

May 13, 2021
10:55 am
Norman1
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April 6, 2013
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Yes, you do need to open a business account once the transaction volume exceeds what is expected for personal use.

It doesn't matter if one is operating the business under one's own name or some other name.

The Simplii Financial accounts are not priced for business use. Same with personal accounts at any other bank. Your 20+ deposits per month, sustained for months, were a dead giveaway.

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