Yes, you should have a separate bank account for your corporation. The CRA expects corporations to maintain distinct financial records from personal accounts, and most banks require a separate business account to open a corporation account. Mixing personal and corporate funds (called 'commingling') can create serious problems during CRA audits, make accounting harder, and may expose your personal assets to business liability. A separate account is a legal and practical necessity for any incorporated business. When you incorporate, you create a legal entity separate from yourself. That separation exists on paper and in practice. Your corporation is responsible for its own income, expenses, and taxes. Your personal finances should stay completely separate. Here's why this matters: CRA audit protection: The CRA expects to see clear records showing where corporate money came from and where it went. A separate account makes this obvious. Liability protection: One of the main reasons people incorporate is to limit personal liability. If you mix personal and corporate funds, a court might ignore that separation and hold you personally responsible for corporate debts. Accounting and bookkeeping: Your accountant or bookkeeper needs clear records to file your corporate tax return accurately.
Legally, you can deposit corporate income into a personal account temporarily, but the CRA expects corporations to maintain separate accounting records. Mixing funds creates audit risk and can undermine your liability protection. It's best practice to open a dedicated corporate account.
The CRA may view commingled funds as evidence that you're not treating the corporation as a separate legal entity. This can lead to audits, disputes over deductions, and in extreme cases, loss of liability protection. A separate account is cheap insurance against these problems.
No. You can have multiple accounts at different banks if your business needs it (for example, a chequing account and a savings account for reserves). The key is that all accounts should be in the corporation's name and clearly documented in your accounting records.
You can pay yourself via salary or dividends. Use your [Salary vs Dividend Calculator](/tools/salary-vs-dividend) to determine which method saves the most taxes. Both methods require proper documentation and should be recorded in your corporate records.
Track and document the mixed transactions immediately. Work with your accountant to separate them before your next tax filing. Keep detailed notes explaining what happened. Going forward, ensure all transactions flow through the appropriate accounts.