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A CRA Business Number (BN): What Is It and Who Needs One?

Mark Virgil Lofranco • 9 December 2024

Congratulations! Whether you’ve just become self-employed or started a side gig to earn extra income, you're on an exciting journey. Amid all the hustle, you might have come across something called a Business Number (BN). But what exactly is it, and do you need one? Let’s dive in and explore everything you need to know about registering for a BN as a self-employed person or small business owner.


What is a Business Number (BN)?


A Business Number (BN) is a 9-digit number issued by the CRA to businesses and self-employed individuals. This number serves as your business’s unique identifier for tax purposes and other dealings with the CRA. Each business or legal entity has its own BN, which remains consistent, even if you need to register for additional accounts like GST/HST or payroll.


Do I Need a Business Number If I’m a Sole Proprietor?


If you're a sole proprietor or in a partnership, you will need a BN only if you’re required to open CRA program accounts. These accounts include GST/HST, payroll, and import/export accounts. Here’s a breakdown of the most common CRA program accounts:


  • GST/HST (RT): If your business collects GST/HST.
  • Payroll Deductions (RP): If your business is incorporated and pays employees, including yourself.
  • Corporation Income Tax (RC): Required for incorporated businesses.
  • Import-Export (RM): Necessary if your business imports or exports goods.


If you’re unsure whether you need a program account, it’s best to check with the CRA or a tax expert. If your business doesn’t need any program accounts, you may not need a BN.


How Do I Register for a Business Number?


You can register for a Business Number directly with the CRA through Business Registration Online (BRO). You’ll automatically get a BN if you do any of the following:


  • Register for CRA program accounts (e.g., GST/HST, payroll deductions).
  • Incorporate your business federally.
  • Register or incorporate your business in specific provinces such as British Columbia, Ontario, or Saskatchewan.


If you already have a BN but your business structure or ownership changes, you may need to apply for a new BN.


Is a GST/HST Number the Same as a Business Number?


No, a GST/HST number is not the same as a Business Number, but it’s connected. The BN stays the same, while the GST/HST number is added as a suffix.


For instance, if you run a small business that earns less than $30,000 per year, you’re not required to register for a GST/HST number. You would still have your BN, but without the GST/HST code attached. If your business crosses that $30,000 threshold, you’ll need to register for a GST/HST number, which will be appended to your BN.


Examples of a Business Number


Your Business Number is a 9-digit number unique to your business. When you register for specific program accounts, additional letters and numbers are added. For example:


  • Business Number: 123456789
  • GST/HST Account: 123456789RT0001
  • Payroll Deductions Account: 123456789RP0001


If you also need a corporation income tax account, your number would look like this:


  • Corporation Income Tax Account: 123456789RC0001


This format makes it easy to identify the different program accounts associated with your business.


What Other CRA Program Accounts Exist?


While you may only need one or two accounts, it’s helpful to know what other CRA program accounts are available:


  • Excise Duty (RD): For businesses that charge excise duty on certain products.
  • Excise Tax (RE): For those who need to charge excise tax.
  • Registered Charity (RR): For organizations with charitable status.
  • Import/Export (RM): For businesses that deal with international trade.
  • Air Travelers Security Charge (RG): For air carriers that charge the air travelers security charge.


Final Thoughts

Whether you're a sole proprietor or a small business owner, understanding the CRA Business Number is essential for managing your tax obligations. If you’re involved in activities like collecting GST/HST, hiring employees, or importing/exporting goods, you’ll likely need to register for a BN. Luckily, the process is simple and ensures that your business dealings with the CRA are organized and efficient.


Register today to streamline your tax reporting and ensure compliance with Canadian regulations!


Key Takeaways


  • A CRA Business Number (BN) is a unique 9-digit identifier issued to businesses and self-employed individuals by the Canada Revenue Agency (CRA).
  • Sole proprietors may not need a BN unless they require specific program accounts such as GST/HST or payroll.
  • A GST/HST number is added to the end of the BN when necessary, depending on the type of business.

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