One of the first things you’ll need to tackle when you start your business is obtaining a business number (BN). This 9-digit identifier, issued by the Canada Revenue Agency (CRA), is unique to each business and simplifies the way you interact with government programs.
Whether you’re registering for taxes, hiring your first employee, or preparing to import goods, BN is essential for compliance.
This guide walks you through five simple steps to getting a BN, while also covering provincial requirements, common mistakes to avoid, and frequently asked questions.
Step 1. Determine Eligibility for a Business Number (BN) in Canada
Not every business needs a BN right away, but many will. A business number is required for tax purposes if your activities fall under certain CRA program accounts:
- RT – Necessary for GST/HST registration if your annual revenue exceeds $30,000
- RP – Needed for payroll remittances if you plan to hire employees
- RC – Linked to corporate taxes for incorporated businesses
- RZ – If your business files information returns
- RR – If your business is a charity organization
- RU – If your corporation needs to file an Underused Housing Tax return for any properties it owns in Canada.
Now, BN registration is not mandatory if your annual revenue is under $30,000. However, voluntarily registering for GST/HST allows you to claim input tax credits on business expenses, effectively putting money back in your pocket.
Step 2. Choose the Appropriate Business Structure
Your business structure determines how you pay taxes, how much liability you assume, and even how you register. The three most common structures in Canada are:
- Sole Proprietorship: Simple, low-cost, but the owner assumes full personal liability.
- Partnership: Two or more owners share profits, responsibilities, and liabilities.
- Corporation: A separate legal entity with limited liability, more paperwork, and formal tax obligations.
Choosing the right structure is important because your BN application is linked to your business structure. For example, corporations are automatically assigned a BN upon incorporation, while sole proprietors may only need one if they surpass revenue thresholds. If you’re unsure, consider consulting a professional or even a registered agent before moving forward.
Step 3. Register with the Canada Revenue Agency (CRA)
Once you know your eligibility and structure, it’s time to apply. You can register for a BN directly with the CRA in a few different ways:
- Can be obtained online via the Business Registration Online portal for fast processing.
- By phone at 1-800-959-5525.
- By mail or fax using Form RC1.
- Non-residents can use the Non-Resident BN Web Form.
Remember, registration is free of charge, and once you apply, your BN will be the single identifier used for business dealings with the CRA. For additional guidance, check out this helpful resource from Ownr: How Do I Get the CRA Business Number?
Step 4. Provide Required Business Information
The CRA won’t issue your BN without accurate details. Any missing or incorrect information can delay your application. Here’s what you’ll need to provide:
- Legal name of the business: Must match official documents filed provincially or federally. If you’re still figuring out how to register a company name, make sure that step is complete before submitting your BN application.
- Physical and mailing addresses: Both may be required for CRA correspondence.
- Type of business activities: Clearly define what your business does (e.g., IT consulting, landscaping, retail sales). This ensures the CRA assigns the right program accounts.
- Ownership and contact details: Names of owners or directors, SIN (for individuals), email, and phone number.
Step 5. Receive Your 9-Digit Business Number
After your registration is approved, you’ll receive your 9-digit Business Number, and this will be your official identifier for taxes, filings, and other regulatory requirements. It’s also something lenders and partners may look for, as it often helps with business financing by proving your business is legitimate.
From there, the CRA adds program accounts depending on your activities. Each program account number has three parts:
Source: Government of Canada
- Business Number (BN): The 9-digit identifier assigned to your business.
- Program Identifier: A 2-letter code that shows the type of CRA account.
- Reference Number: A 4-digit sequence used to distinguish multiple accounts of the same kind.
So, for example:
- A GST/HST account might look like 123456789 RT 0001
- A payroll account might look like 123456789 RP 0001
Provincial and Territorial Requirements
Federal registration doesn’t always cover everything, and you may need to complete extra steps based on where you operate.
- Integration with Provincial Registration: Some provinces simplify the startup process by offering joint registration with the CRA. For example, in Ontario and British Columbia, you can apply for your BN while also registering your business name or incorporating through the provincial registry.
- Differences by Jurisdiction: Not all provinces handle registration the same way. For instance, Québec businesses must register for GST/HST through Revenu Québec rather than CRA.
- Extra-Provincial Registration: If your business expands into another province, you typically must register extra-provincially in each jurisdiction where you maintain a location, hire staff, or conduct significant operations. These steps ensure you’re compliant with local laws, licensing, and employment regulations.
Common Mistakes to Avoid when Registering Your Business Number in Canada
Although the process is straightforward, even minor mistakes can delay your BN registration. Here are the avoidable errors we see most often and what to do instead:
- Registering Under the Wrong Business Structure
Choosing the wrong structure can have major implications for taxes and liability. For example, registering as a partnership without the right agreements in place can lead to legal complications.
Always confirm your structure choice before applying for a BN, ideally with professional advice if your long-term goals are complex.
- Omitting Key Business Activity Information
Submitting vague or incomplete information, like “consulting” instead of “IT consulting for small businesses”, may result in misclassification or delays. Be as specific as possible about what your business does so the right program accounts are opened from the start.
- Confusing Business Number with Business License
A BN is not a business license. While the BN is your federal identifier with the CRA, it does not grant you the right to operate in your municipality or province.
Business licenses, permits, or registrations are handled separately and usually depend on your industry and location. Make sure to check local licensing requirements in addition to applying for your BN.
Avoiding these mistakes will help you get off to a good start. If you’re looking for guidance through every step, from business structure to compliance, Ownr makes the process easier by giving you the tools and support you need to get started confidently. With Ownr, you’re officially in business.
Key Takeaways
- A Business Number (BN) is a 9-digit CRA identifier that’s essential for taxes, payroll, and regulatory compliance.
- Registration is free and can be completed online, by phone, or by mail. Just make sure your business details are accurate.
- Provincial rules differ, so check local requirements and avoid common mistakes like misclassifying your structure or confusing a BN with a business license.
Frequently Asked Questions
How to Get a Business Number in Ontario?
Get a Business Number in Ontario by registering through the Canada Revenue Agency (CRA). Apply online at the CRA’s Business Registration Online portal, by phone at 1-800-959-5525, or by mail. You’ll need your legal business name, business structure, and contact details to complete registration.
Do I Need a Business Number for My Sole Proprietorship in Canada?
You need a Business Number for your sole proprietorship in Canada if you plan to register for GST/HST, payroll, or import/export accounts. If none of these apply, and your province doesn’t require registration, you may operate without one.
Can I Get a Business Number for Multiple Businesses in Canada?
Yes, you can get a separate Business Number for each business in Canada, but only if each is a distinct legal entity. If you operate multiple business activities under a single sole proprietorship, they share one Business Number.
How Long Does It Take to Get a Business Number in Canada?
You can get a Business Number in Canada immediately if you apply online through the CRA’s Business Registration Online portal or by phone. Applications by mail or fax typically take up to 10 business days. Processing time depends on the method and whether your application is complete and accurate.
Can I Make Changes or Updates to My Business Number?
Your Business Number (BN) cannot be changed, as it is permanently tied to your legal entity. However, you can update details like your address, operating name, and contact information through the CRA, either online, by phone, or by mail, depending on the nature of the update.
This article offers general information only, is current as of the date of publication, and is not intended as legal, financial or other professional advice. A professional advisor should be consulted regarding your specific situation. While the information presented is believed to be factual and current, its accuracy is not guaranteed and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the author(s) as of the date of publication and are subject to change. No endorsement of any third parties or their advice, opinions, information, products or services is expressly given or implied by RBC Ventures Inc. or its affiliates.