Do I Need a Business Bank Account?

It depends on how you’re earning money and how your business is set up.

You must use a proper business account if:

• You’ve incorporated a company (e.g. a corporation), or

• Your bank/fintech’s terms don’t allow business activity in a personal account

Even if you’re a sole proprietor or side hustler, a separate account for business income and expenses is usually a smart move for tracking, taxes, and professionalism.

Where KOHO Can Still Help

KOHO isn’t a bank and KOHO accounts aren’t business bank accounts—but KOHO can still support you alongside a business account, especially if you’re just starting out or running a small side hustle.

With KOHO Essential, you get:

• More from your everyday spending, fee free¹

• A prepaid Mastercard® you can use for spending and budgeting

• Grow your savings with a 2% rate on your entire balance

• Built-in tools to help you track and manage your personal cash flow

When a Business Account Makes Sense

You should strongly consider a business bank account if:

• You’re incorporated

• You’re collecting sales tax (GST/HST) and want clean records

• You have multiple clients, suppliers, or employees

• You want to look more professional with business cheques, merchant services, or payment tools

It keeps business and personal money separate, which makes life easier at tax time and reduces confusion.

When You Might Start With a Separate Personal Account

If you’re a sole proprietor or side hustler just starting out, you might:

• Use a dedicated personal account only for your business income and expenses

• Keep your personal spending in a different account

This gives you cleaner records without forcing you into something complex on day one—just make sure you’re respecting each institution’s terms of use.


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