Step #5: Business Number (BN)

Business Number (BN)

Most Canadian businesses require a Business Number (BN) to register for one or more of the following Canada Revenue Agency accounts:

• GST/HST
• Corporate Income Tax
• Import/Export
• Payroll

The BN is a 9-digit registration number that simplifies and streamlines the way businesses deal with the Federal Government.

If your business will be collecting $30,000 or more in gross revenues (goods and services) in any 12-month period, you are required to register, collect, and remit GST/HST. If your sales are less than $30,000, registration is not mandatory. If you register, however, you can claim back the HST paid on items purchased for the business as input tax credits when you file your GST/HST remittance. There is no fee for this registration, but mandatory to keep it for one year once registered.

Other CRA accounts that require a BN:

1. Payroll Deductions for Employers: If you have employees you are responsible for calculating, deducting, and remitting income tax, employment insurance, and Canada Pension Plan contributions. A free employer’s kit can be obtained from the CRA.
   
   Learn more: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll.html
   
   
2. Import/Export: If your business will be importing commercial shipments from a foreign country, or exporting commercial goods to other countries, you will need to register for an import/export account. This number will be used to process customs documents.
   
   Learn more: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/registering-your-business/import-export-program-account.html
   
   
3. Corporate Income Tax: When you incorporate in Ontario your business will automatically be assigned a Business Number (BN) and a corporation income tax program account. Corporations have to meet certain obligations, such as reporting all income and expenses and notifying the CRA when there is a change of directors.
   
   Learn more: https://www.canada.ca/en/services/taxes/income-tax/corporation-income-tax.html