What is a Canadian Business Number?

Quick answer: what is a Canadian Business Number?

A Canadian Business Number is a unique 9-digit number used to identify a business for Canada Revenue Agency program accounts and certain other government programs. The BN stays the same for the business, while program accounts can be added to it when needed.

For example, a business may have one 9-digit BN. If it registers for a GST/HST account, a GST/HST program identifier is added. If it later hires employees, a payroll program account can be added to the same BN.

Think of the BN as the core business identifier. CRA program accounts are specific tax or reporting accounts connected to that identifier.

What a Business Number is

A Business Number is an identifier. It helps the Canada Revenue Agency and certain government programs recognize the business or legal entity. It is used when the business registers for CRA program accounts, files certain returns, pays certain taxes, communicates with government programs, or manages business tax accounts.

A BN can be used by different kinds of businesses, including corporations, sole proprietorships, partnerships, and other organizations, depending on the registration situation.

A business should generally have only one BN for the same business or legal entity. If the business later needs additional CRA program accounts, those accounts are usually added to the existing BN.

Canadian Business Number format

The core BN is 9 digits. When a CRA program account is added, the full program account number has three parts:

• the 9-digit Business Number;
• a 2-letter program identifier;
• a 4-digit reference number.

A simplified example looks like this:

The exact accounts a business needs depend on what the business does. A business should not register for every possible program account just because the account exists.

CRA program accounts explained

CRA program accounts are specific accounts attached to the BN for different tax or reporting activities. Each program account has its own purpose, registration rules, filing duties, deadlines, and recordkeeping needs.

Common CRA program accounts include:

The program identifier matters. A BN by itself is not the same as being registered for GST/HST, payroll, corporation income tax, or import/export.

When a business may need a BN

Not every unincorporated business needs a BN immediately. A business may need a BN if it incorporates or if it needs to register for CRA program accounts.

A business may need a BN when:

• it incorporates federally or through certain provincial systems;
• it needs a GST/HST account;
• it needs a payroll account;
• it needs a corporation income tax account;
• it needs an import/export account;
• it needs another CRA program account;
• another government program requires a BN for business identification.

A sole proprietor who is not registered for CRA program accounts may not need a BN at the earliest stage. But that can change if the business grows, registers for GST/HST, hires workers, incorporates, or begins activities that require a program account.

Business Number and incorporation

Incorporation and the BN are connected, but they are not the same thing. Incorporation creates a corporation. The BN identifies the business for CRA and certain government program purposes.

When a Canadian business incorporates, a BN may be created or connected through the registration process. A corporation may then have an RC corporation income tax program account associated with that BN.

A beginner should not confuse:

• articles of incorporation;
• certificate of incorporation;
• corporate legal name;
• business number;
• CRA program account number;
• GST/HST account;
• provincial business name or extra-provincial registration.

These items may be related, but each has a different purpose.

Business Number and GST/HST account

A GST/HST account is not the same as the BN itself. A GST/HST account is a CRA program account attached to the BN. It commonly uses the RT program identifier.

A business may need a GST/HST account depending on its activities, sales, registration status, and whether mandatory or voluntary registration rules apply. Certain businesses may need to register before charging GST/HST. Other small businesses may need to monitor whether they cross a threshold or become required to register.

GST/HST rules can be technical. A beginner should check current CRA guidance before deciding whether to register, when to register, whether to charge GST/HST, and how to file returns.

Business Number and payroll account

A payroll account is another CRA program account attached to the BN. It commonly uses the RP program identifier.

A business may need a payroll account if it has employees or certain other payer obligations. Payroll can involve deductions, remittances, slips, filing deadlines, records, and employment-related responsibilities.

A new business should not casually hire workers without understanding payroll, employment standards, contractor-vs-employee questions, workplace rules, insurance, and tax obligations.

If a business has no employees and no payroll obligations, it may not need a payroll account at the beginning.

Business Number and corporation income tax account

A corporation income tax account is used for corporate tax filing and reporting. It commonly uses the RC program identifier.

If a business is incorporated, the corporation may have its own corporate tax filing obligations. A corporation is not simply the same as a sole proprietorship with a new name. It is a formal legal entity with separate records and filing duties.

Corporation tax may involve corporate income tax returns, accounting records, shareholder records, salaries, dividends, loans, retained earnings, GST/HST issues, payroll, and professional accounting help.

Business Number and import/export account

An import/export account is used for certain customs-related business activities. It commonly uses the RM program identifier.

Not every business needs an import/export account. A local service business, small home-based business, or simple consulting business may not need this account at all.

A business that imports goods, exports goods, deals with customs, or sells physical products across borders should check current official guidance before assuming what account is needed.

What a Business Number is not

A BN is useful, but it is not a complete business setup by itself.

A BN is not automatically:

• a corporation;
• a business licence;
• a GST/HST account;
• a payroll account;
• a bank account;
• a registered trade name;
• a domain name;
• a trademark;
• insurance coverage;
• permission to operate in every province, territory, city, or industry;
• proof that the business has met all tax and reporting obligations.

The BN is one piece of the business registration and tax-account picture. It should be understood together with the business structure, location, activity, records, and tax responsibilities.

Finding an existing Business Number

A business may already have a BN if it previously registered with CRA, incorporated federally, registered or incorporated through certain provincial systems, or started a registration process that created a BN.

Before registering again, a business should check whether it already has a BN. Registering for a new BN when the same business or legal entity already has one can create confusion.

Useful places to check may include:

• CRA business registration records;
• corporation documents;
• GST/HST registration letters;
• payroll account letters;
• corporation income tax account records;
• business bank account setup documents;
• online CRA business account records;
• documents from a lawyer, accountant, or incorporation service.

If the owner is unsure, official CRA guidance should be checked before creating another registration.

Non-residents and Canadian Business Numbers

Non-residents doing business in Canada may sometimes need a BN or CRA program accounts. This can involve different registration pathways than a Canadian resident with a Canadian business.

Non-resident situations can involve:

• doing business in Canada;
• selling into Canada;
• registering for GST/HST or digital economy rules;
• payroll or information return obligations;
• Canadian corporation income tax questions;
• banking and identity verification issues;
• tax treaty questions;
• home-country reporting duties.

Official sources to verify

CRA registration rules and processes can change. Use official CRA pages before registering for a BN or program account.

• CRA — Business registration with the CRA
• CRA — Business number and CRA program accounts
• CRA — When you need a BN
• CRA — Program accounts you may need
• CRA — How to register
• CRA — Ways to find an existing Business Number
• CRA — Form RC1, Request for a Business Number and Certain Program Accounts

Checklist: do you need a Canadian Business Number or program account?

Use this checklist as a thinking tool before registering.

• Is the business incorporated?
• Does the business already have a BN?
• Is the business a sole proprietorship, partnership, corporation, or other structure?
• Does the business need a GST/HST account?
• Will the business have employees or payroll obligations?
• Does the business need a corporation income tax account?
• Will the business import or export goods?
• Does the business need another CRA program account?
• Does the business operate in more than one province or territory?
• Does a provincial or municipal registration also apply?
• Does the business need a trade name, operating name, or business name registration?
• Can the owner access CRA online registration or the correct official process?
• Should an accountant or tax professional be consulted before registering?

A BN is an important Canadian business identifier. The key is to understand which program accounts the business actually needs and which other registrations still apply.