Self-Employed in Canada: 3 Business Cards, No Income Needed
- Business
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Yes, a sole proprietorship is enough to get a business credit card in Canada. No incorporation is required, and the most accessible cards ask for no minimum personal income. The real question becomes this one: which card pays more than it costs, at your spending volume?
If your business spending sits around $2,000 a month, two no-fee cards cover it: the BMO CashBack Business Mastercard and the RBC Business Cash Back Mastercard. Above that, the TD Business Travel Visa Card pays more, as long as you reach its tiers.
| Credit card | Annual fee | Welcome offer | |
|---|---|---|---|
| $0 | |||
| $0 | |||
| $0 | |||
| $199 |
A sole proprietorship is enough
Your self-employed status already opens the door. BMO lists the eligible business types on its application page, and both "sole proprietorship" and "single-owner business" sit there next to the incorporated company.
Next, look at what the issuer actually asks for. The documents are about you, not about a balance sheet: your name, your address, your date of birth and your personal identification. A business name registration is added only if you operate under one.
At TD, the stated criterion fits on one line. The TD Business Travel Visa Card page lists a single condition: being a Canadian resident who has reached the age of majority in their province.
In other words, a business credit card with no personal income requirement stays within reach even if your first year of activity has just started.
What the business card changes
A dedicated card separates your business spending from your personal spending, and that separation saves you time every spring. Your statements turn into a list of deductible expenses ready to carry over to your T2125, instead of a line-by-line sort.
Your rebates grow as well. A personal card rarely pays a bonus rate on office supplies or phone bills, while several business cards do exactly that.
RBC adds an argument few cardholders notice: the card builds a credit history in the business's name. That history counts the day you apply for an operating line of credit.
Finally, your business purchases stop taking up room on your personal card's limit. For the accounting side, our guide to bookkeeping for the self-employed explains how to feed those statements into software.
Under $25,000 a year
Two no-fee cards do the job, and they differ mainly in how they pay you.
The BMO CashBack Business Mastercard pays 1.5% on gas, office supplies and your mobile and internet bills. Everything else earns 0.75%. You pay no annual fee, and the purchase rate sits at 20.99%.
BMO adds a limited-time offer on top: 10% back for three months in those same categories, plus a 0.00% rate on balance transfers for nine months, with a 3% transfer fee.
- Annual fee
- $0
- Welcome offer
- Limited-time offer: 10% cash back for three months on gas, office supplies and mobile and internet bill payments. Plus a 0.00% welcome interest rate on balance transfers for nine months, with a 3% balance transfer fee.
Apply Now
on BMO's website
The RBC Business Cash Back Mastercard goes for simplicity instead. It pays 2% on every purchase for the first three months, then 1%, with no annual fee and no fee for the additional card. RBC does cap the account at a single additional card.
You can take your cash back out as soon as it reaches $25. Otherwise, RBC applies it to your balance automatically in January.
Above that, the tiers decide
The TD Business Travel Visa Card carries the biggest welcome offer among Canadian business cards: up to 200,000 TD Rewards Points, a value TD puts at $1,300, with the annual fee rebated in the first year for you and up to four additional cardholders.
That offer splits into four tiers, though, and this is where your volume decides.
| Tier | Condition | TD Rewards Points | Monthly spending needed |
|---|---|---|---|
| 1 | First purchase charged to the card | 30,000 | None |
| 2 | $15,000 within 180 days | 120,000 | $2,500 |
| 3 | $25,000 within 365 days | 30,000 | $2,084 |
| 4 | Any purchase during the 15th statement cycle | 20,000 | None |
| Total | All four tiers together | 200,000 | $2,500 |
At $2,000 of monthly spending, you collect the first tier and miss the next two. You are $3,000 short over six months for the big one, then $1,000 short over the year for the third.
At $2,500 a month, on the other hand, all four tiers land. The gap between those two profiles comes down to $500 of monthly spending, not to the card itself. That is why a tiered welcome offer deserves a read before the application, never after.
- Annual feeNo annual fee the first year
- $0 $149
- Our valuationMilesopedia first-year estimate First-year valueWelcome bonus$1,000Annual fee rebated$149Total$1,149Rewards on your spending are not included. The calculator that adds them from your own profile is on the card's page.
- $1,149
- Welcome offerAfter $25,000 in 12 months
- Up to 200,000 points
Apply Now
on TD's website
If your volume clearly exceeds that threshold and you travel, the American Express Business Gold Rewards Card deserves a look. Its purchasing power is not capped by a preset spending limit, a mechanism we cover in our guide to business credit cards, pros and cons.
| Card | First-year fee | What $24,000 earns | First-year net gain |
|---|---|---|---|
| BMO CashBack Business Mastercard | $0 | $105 at 1.5% and $127 at 0.75% | $232 |
| RBC Business Cash Back Mastercard | $0 | $120 at 2% for 3 months, then $180 at 1% | $300 |
| TD Business Travel Visa Card | $0, fee rebated in year one | 60,000 points earned and 30,000 welcome points | 90,000 TD Rewards Points |
Your personal card keeps a role
Your personal card often remains the better payer on groceries, restaurants and transit. Nothing forces you to move everything over on day one.
The rule fits in one sentence: keep the personal card for the categories where it pays more, and move everything deductible onto the business card.
One nuance deserves your attention. A business expense paid with your personal card stays deductible, but you will have to trace it yourself in your statements. That is precisely the work the business card saves you.
What to set up right away
Before your first purchase, a few settings will save you round trips later.
- A separate business account: your payments and your cash back run through it, which saves round trips with your personal account.
- Your business name registration, if you use one: BMO asks for the master business licence that goes with it.
- Your statement cycle date: TD's fourth tier triggers during the 15th statement cycle, not the 15th calendar month.
- Bookkeeping software connected to the card: your statements then export without re-entry.
- A clear rule for mixed expenses: a half-personal meal gets noted at the time of purchase, never in April.
Learn more
Business credit card for the self-employed: frequently asked questions
Do you need to be incorporated to get a business credit card?
No. BMO accepts a sole proprietorship and a single-owner business on the same footing as an incorporated company. You provide your personal identification, then a business name registration only if you operate under one.
What personal income do you have to declare?
The three cards covered here ask for none. TD lists a single eligibility condition on its product pages: being a Canadian resident who has reached the age of majority. Other business cards, World Elite ones in particular, do ask for a personal income.
Which card works best if you carry a balance?
Look at the rate before the rewards. The TD Business Select Rate Visa Card charges 11.99% on purchases and cash advances with no annual fee, with an 8.99% option for a $49 annual fee. A 1% rebate never offsets nine points of interest.
Can you keep paying business expenses with a personal card?
Yes, and the expense stays deductible. You will have to find it yourself in your statements, though, and justify it if you are reviewed. That is exactly the sorting a business card saves you.
Is cash back or are points from a business card taxable?
The answer depends on who pays the expense and on how you use the rewards. Our tax guide for businesses, linked above, covers the common cases. A specific situation deserves your accountant's opinion.
How many additional cards can you add?
It varies widely between issuers. RBC caps its Business Cash Back Mastercard at a single additional card, at no charge. TD charges $49 per additional card on the Business Travel Visa Card, and rebates those fees in the first year for up to four cardholders.
Does a business card come with insurance?
Yes, and the level follows the annual fee. The TD Business Travel Visa Card includes seven travel insurance coverages, including travel medical. No-fee cards generally stop at purchase protection and extended warranty.
Which card should you start with when launching a business?
Take a no-fee card while you measure your real volume over twelve months. You will move to a card with a fee the day your spending reaches the tiers that make it pay.
