USD Account for Canadian Business: How to Open One and Which Provider to Use
If your Canadian business invoices US clients, pays US contractors, or runs US-facing digital products, a dedicated USD account saves money and eliminates friction. Here is exactly how to get one.
Why Canadian Businesses Need a Separate USD Account
When a Canadian business receives USD payments into a CAD account, the bank auto-converts at their posted rate — typically 1.5–2.5% worse than the mid-market rate. On $300K USD received annually, that is $4,500–$7,500 in unnecessary conversion costs. If you also pay USD expenses (US contractors, AWS, software subscriptions), you are converting twice: once in and once out.
A USD account lets you hold the USD, pay USD expenses directly, and only convert what you need into CAD — on your schedule and at a rate you control. The difference in real terms is significant for any cross-border operation doing more than $50K in USD volume annually.
Your Options: From Easiest to Most Powerful
The right choice depends on whether you need US clients to pay you via ACH, whether you have (or want) a US entity, and how much monthly USD volume you process.
Wise Business
Fintech Multi-Currency
USD Capability
USD account number (routing + account)
Fees
No monthly fee. Mid-market FX rate when converting. ~0.4–0.7% conversion fee.
Setup
Fully online. 1–3 business days.
Best For
Receiving USD from US clients via ACH or wire
Mercury
US Fintech (requires US entity or EIN)
USD Capability
Full US business checking account
Fees
Free. No monthly fee, no minimum.
Setup
Requires US EIN. Online. 1–5 business days.
Best For
Canadian businesses with US subsidiary or EIN
Relay
US Fintech (accepts Canadian corps)
USD Capability
USD checking account with routing number
Fees
Free or $30/month (Pro). No minimum.
Setup
Accepts Canadian-incorporated businesses. Online. 2–5 days.
Best For
Canadian businesses that want a US-style account without a US entity
RBC USD Business Account
Traditional Canadian Bank
USD Capability
USD account under Canadian banking umbrella
Fees
$6–$10/month USD account add-on. CDIC insured.
Setup
Requires in-branch setup in most cases.
Best For
Businesses already banking at RBC who want USD alongside CAD
TD US Dollar Business Account
Traditional Canadian Bank
USD Capability
USD account integrated with CAD banking
Fees
$7–$15/month. Transaction fees apply.
Setup
In-branch required. Existing TD business relationship helps.
Best For
Businesses frequently converting between CAD and USD
Step-by-Step: Opening a USD Account as a Canadian Business
1. Choose your provider
For most Canadian businesses billing US clients, start with Wise Business (easiest setup) or Relay (most feature-rich, accepts Canadian corps). Both give you a real US routing number and account number.
2. Gather your documents
Certificate of Incorporation, Articles of Incorporation, CRA Business Number, government-issued ID for all beneficial owners (anyone with 25%+ ownership). Passport works internationally.
3. Get a US EIN (if using Mercury or US banks)
Call IRS Business & Specialty Tax Line at 1-800-829-4933 (US) or +1-267-941-1099 (international). Reference Form SS-4. Takes 20–30 minutes. You'll receive the EIN immediately by phone.
4. Complete the online application
Wise and Relay applications are entirely online. Expect 1–5 business days for approval. For RBC/TD USD accounts, schedule a branch appointment with your documentation.
5. Update your invoices and payment details
Add your new USD routing/account number to invoice templates and any payment processor settings. For US clients paying by ACH or wire, this is the account they'll send to.
Tax Implications: Holding USD in a Canadian Business
When you hold USD in a corporate account, unrealized foreign exchange gains and losses accumulate. When you convert USD to CAD, you realize an FX gain or loss based on the rate difference from when you earned the USD to when you converted it. This is taxable income (or a deductible loss) in Canada.
Track your USD transactions with a USD balance in your bookkeeping software (QuickBooks, FreshBooks, Xero all support multi-currency). Mark each USD deposit at the rate on the date received. When you convert, record the gain or loss. Your accountant will handle this at year-end, but clean records make it significantly easier and cheaper.
Frequently Asked Questions
Ready to Set Up Your Cross-Border Banking?
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