Canada CRA Business Number Registration: Complete Guide for New Businesses

The Business Number (BN) is a unique 9-digit identifier assigned by the Canada Revenue Agency (CRA) to businesses in Canada. The BN is used to identify a business to the CRA and other government agencies. It is required for tax-related transactions including filing income tax returns, collecting and remitting GST/HST, remitting payroll deductions, and importing or exporting goods.

The BN consists of a 9-digit business number followed by a program account identifier (letters and numbers) that specifies the type of program account. The most common program accounts are:

| Program Account | Format | Purpose |

|---|---|---|

| GST/HST | RT0001 | Collecting and remitting GST/HST |

| Payroll Deductions | RP0001 | Remitting payroll taxes (CPP, EI, income tax) |

| Corporate Income Tax | RC0001 | Filing corporate tax returns |

| Import/Export | RM0001 | Importing or exporting goods |

Registration Methods

You can register for a Business Number through several methods:

Online: The fastest method. Register through the CRA's online services using your social insurance number (SIN) and business information.

By Phone: Call the CRA's Business Enquiries line at 1-800-959-5525 for business registration.

In Person: Visit a CRA tax services office with required documents.

By Mail: Complete Form RC1 (Request for a Business Number) and mail it to your local tax services office.

Business Structure and BN

Sole Proprietorship

As a sole proprietor, you use your SIN for personal tax purposes but still need a BN for business accounts. Your business income is reported on your personal tax return (Form T2125). The business and the owner are the same legal entity.

Incorporation

When you incorporate, you create a separate legal entity that requires its own BN. The corporation files its own tax return (T2) and pays corporate income tax. Incorporation provides limited liability protection and potential tax advantages.

Program Account Setup

After obtaining your BN, you may need to set up specific program accounts:

| Situation | Required Account |

|---|---|

| Annual revenue over $30,000 | GST/HST account (RT0001) |

| Hiring employees | Payroll Deductions account (RP0001) |

| Incorporated business | Corporate Tax account (RC0001) |

| Importing goods | Import/Export account (RM0001) |

Payroll Deductions Obligations

If you hire employees, you must:

1. Register for a payroll deductions program account

2. Deduct income tax, CPP contributions, and EI premiums from employee pay

3. Remit deductions to the CRA on a regular schedule (monthly, semi-weekly, or quarterly)

4. File T4 slips and T4 summaries annually

5. Issue T4 slips to employees by end of February

GST/HST Obligations

Businesses with annual taxable revenues exceeding $30,000 must:

• Register for GST/HSTCollect GST/HST on taxable suppliesFile GST/HST returns (monthly, quarterly, or annually)Remit collected GST/HST to the CRA