In this article:
Overview
You can open a Wealthsimple business chequing account for your sole proprietorship, whether or not it's registered with a provincial or territorial business registry. A sole proprietorship is a business you own and operate yourself, with no separate legal identity from you. If your business is incorporated, open a business chequing account for your corporation instead.
Your business chequing account includes:
- No monthly fees
- Sending and receiving Interac e-Transfer® transactions and direct deposits
- A virtual prepaid business Visa card that's linked to your business and earns 1% cash back
Eligibility
There are two paths, depending on your registration status:
-
Registered sole proprietorships:
- You may operate under a trade name that's different from your own legal name
- We verify your business with your provincial or territorial business registry
- We'll ask for your registration date, mailing address, industry, and province or territory
-
Unregistered sole proprietorships:
- You operate under your own legal name
- You'll confirm your business details yourself. We'll still ask for some basic information about your business, including your source of funds, the nature of your business, and your industry code
Note: Newfoundland and Labrador (NL) doesn't have a provincial business registry, so all NL sole proprietorships are unregistered. If you operate under your own legal name, no extra steps are needed. If you operate under a trade name, you'll be asked to upload one of the following documents to verify your business:
- a municipal business licence,
- a CRA Business Number (BN) confirmation, or
- a Notice of Assessment or GST/HST registration document.
How to open your account
You can open a business chequing account for your Sole proprietorship from the Wealthsimple app or web. Follow these steps:
Ensure you have the latest iOS or Android version of the Wealthsimple app.
- Log in to the Wealthsimple app
- From the Home tab, scroll down to your accounts
- Tap the add (+) button
- Tap Open a new account
- Under Business, tap Business chequing
- Tap Open an account
- Select your business, or tap Add a new business
- When asked about your business's legal structure, select Sole proprietorship
- Complete the short onboarding steps
- Log in to your Wealthsimple profile on a laptop or computer
- From the Home page, click Add account in the top right corner
- Go to the Business category
- Click Business chequing
- Click Open account
- Select your business, or click Add a new business
- When asked about your business's legal structure, select Sole proprietorship
- Complete the short onboarding steps
If your registered sole proprietorship's status comes back as inactive during the registry check, learn how to fix it. If no registry record was found for your business, learn what you can do.
Payment methods details and cash deposit limits
- Cash deposits: Your sole proprietorship account uses the same cash deposit limit as your personal accounts.
- Cheques: Cheques and void cheques show your legal name, followed by operating as your trade name if you have one.
- Wires: Wire instructions show your legal name.
- Interac e-Transfer: You can send and receive Interac e-Transfer transactions in your business chequing account using your business email. Learn how to set up your business email for Interac e-Transfer transactions.
- Direct deposits: You can receive direct deposits into your business chequing account.
- Tax payments: If you're a registered sole proprietorship with a business number, you can make CRA payroll, GST/HST, and Revenu Québec payments the same way as other Wealthsimple business accounts.
CDIC coverage
Your sole proprietorship account is covered by the Canada Deposit Insurance Corporation (CDIC) up to $100,000, the same as our other business chequing accounts.
Frequently asked questions
What's a NAICS code, and where do I find mine?
A North American Industry Classification System (NAICS) code is a 6-digit code that describes what your business does. When you apply, we'll ask what industry your sole proprietorship operates in. Search for your industry in the Industry field and choose the closest match. If you're not sure, see the full list of NAICS codes from Statistics Canada. You can also find your code on your T2125 tax form. If you're applying in your phone's browser, open the list in a separate tab so you don't lose your place in the application.
Why does it say no registry record was found for my business?
We check your business against the provincial or territorial business registry, and we couldn't find a match. Here's what you can do:
- If you registered recently, it can take up to 2 weeks for your registration to show up in the registry. Wait a bit and try again.
- If your business isn't registered, go back and choose the unregistered sole proprietorship option instead.
- If neither of these applies, contact us and we'll look into it for you.
Can I get a card for my sole proprietorship account?
Yes. You can add a virtual prepaid business Visa card to your business chequing account. It's linked to your business and earns 1% cash back on purchases.
Can I file my business taxes with Wealthsimple?
Yes. You can file your T2125 (Statement of Business or Professional Activities) with Wealthsimple Tax.
Can I open an investing account for my sole proprietorship?
Not right now. We currently support only business chequing accounts for sole proprietorships.
Why should I get a business chequing account?
It keeps your business money separate from your personal money. That makes bookkeeping easier, simplifies your taxes, and gives your business a more professional look to clients.
I'm just starting a business. What do I do first?
Decide how you'll operate: under your own legal name, under a trade name, or as a corporation. Then open a business chequing account so your business finances are separate from day one.
Do I need to register once I earn over $30,000 CAD?
Yes. Once your business earns more than $30,000 CAD in revenue over four consecutive quarters, you have to register for a GST/HST number, no matter what name you operate under.
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