What Is a Business Number (BN) and How to Get One from the CRA

You may have heard the term Business Number when setting up your company in Canada. Many new owners feel unsure about what it really is or when they need one. The CRA uses this unique number to identify your business for taxes, sales, payroll, and other accounts. Think of it as your business ID across Canada.

If you plan to sell goods, hire workers, or run an online store, you will likely need this number. We break everything down in simple steps, so you know what to do and when to do it. You will also learn how to register, which accounts matter, and how to avoid common mistakes.

What Is a Business Number (BN) in Canada?

A Business Number is a unique nine-digit ID that the CRA gives to your business. You use this number when you deal with the CRA for taxes, GST or HST, payroll, import and export accounts, and other program accounts. Think of it as the main ID that shows who you are when you run a business in Canada.

Every BN looks the same at the start. It has nine digits, and each CRA program account gets an extra set of letters and numbers at the end. This structure makes it easy for the CRA to match each part of your business activity. It also keeps your records clean and easy to track.

Many people confuse a Business Number with a GST/HST number. They are not the same. The BN is the base number. The GST or HST account is an add-on. The same rule applies to payroll, import and export accounts, and corporation income tax accounts.

A BIN is tied to legal entity If you move from sole proportionate to corporation or otherwise change the entity, you need a new BIN and new program accounts.

What Is the CRA?

The Canada Revenue Agency is the federal office that handles taxes and benefits in Canada. It manages your Business Number, your GST or HST account, and all CRA program accounts linked to your business. When you register, file or update anything, the CRA is the main authority that reviews your details and keeps your records organised.

The CRA also makes sure Canadian businesses follow tax rules. This includes payroll deductions, import or export accounts and corporation income tax accounts. If you are a sole proprietor, corporation or non-resident registering in Canada, the CRA is the agency you work with to stay compliant.

Who Needs a Business Number and When Do You Need One?

Most businesses in Canada need a Business Number at some point. The CRA requires it when you take part in certain activities, file certain taxes, or operate under certain structures. If you fall into any of the groups below, you must get a BN.

Here are the most common cases:

1. Sole Proprietors in Canada

If you run a small business on your own, you may still need a Business Number. This includes home-based businesses, freelancers, online sellers, and part-time side hustles. You need a BN when you hit the CA$30,000 sales threshold or when you open a program account like GST or HST.

2. Corporations in Canada

Every corporation needs a BN as soon as it forms. When you incorporate provincially or federally, the BN is created automatically. It becomes your main tax ID for GST/HST, payroll, corporation income tax and more.

3. Partnerships and Trusts

Partnerships and trusts also need a Business Number if they run a business or need a CRA program account. This includes professional firms, investment groups, or family trusts handling income.

4. Non-Profits and Charities

Registered charities and non-profit organisations often need a BN to manage payroll, GST/HST rebates, or to receive donations.

5. Non-Residents Operating in Canada

Non-residents who carry on business in Canada can apply for a BN through non-resident registration. You use the RC1 form when you do not have a Canadian address or Social Insurance Number (SIN).

6. E-Commerce and Online Businesses

If you sell online to Canadian customers, the CRA may require you to register for GST or HST. Once you register, you get a Business Number.

7. Importers and Exporters

If you bring goods into Canada or ship goods out, you must get an import/export account. This account attaches to your Business Number.

8. Government Contractors

If you hold contracts with federal or provincial agencies, you may need a BN to stay compliant with payment rules.

9. Businesses Hiring Workers

If you pay wages, bonuses, or benefits, you must open a payroll deductions account. The BN is required before this account can be set up.

How to Register for a Business Number with the CRA

Getting a Business Number is simple when you follow clear steps. You can register online, by phone, or by mail. Many owners prefer online registration because it is faster and easier to use. Here is the full breakdown.

Step 1: Gather the Information You Need

Before you start, prepare the following:

• Legal name of your business
• Trade name or operating name
• Business address
• Your Social Insurance Number (for individuals)
• Type of business structure
• Date you started business activities
• Description of your business
• CRA program accounts you want to open

If you are a non-resident, you fill out the RC1 form and provide a foreign ID in place of a SIN.

Step 2: Register Online Using Business Registration Online (BRO)

The fastest way to get a Business Number is through Business Registration Online (BRO). This system lets you:

• Register for a BN
• Add GST/HST
• Open a payroll account
• Open an import/export account
• Add a corporation income tax account

The system guides you step by step. Most people receive their BN right after finishing the online form.

Step 3: Register by Phone

CRA stopped accepting the phone registration as of November 3, 2025. Keep business registration online, and mail for non-residents.

Step 4: Register by Mail or Fax

If you prefer paper, you can mail or fax the RC1 form. This method takes longer. It is common for non-residents, charities, and partnerships.

Step 5: Get Your CRA Program Accounts

Once you have your BN, you can add any program account that fits your business:

• GST/HST registration with CRA
• Payroll deductions account (for hiring staff)
• Import/export account
• Corporation income tax account

Each account uses the same nine-digit BN with a different ending. This keeps your records safe, clean and organised.

CRA Program Accounts Linked to Your Business Number

Your Business Number is the base ID. Each tax activity adds a program account to that number. These accounts help the CRA separate your GST or HST, payroll deductions, imports and exports, and corporation income tax. You can open one account or many, depending on your needs.

Below is a clear look at each account and when you need it.

GST or HST Account (RT)

Many businesses need a GST or HST account. You must open this account when your total worldwide sales pass CA$30,000 in a single calendar quarter or over the last four consecutive calendar quarters. This rule applies to sole proprietors, corporations, partnerships, home businesses, and online stores.

You also need this account if you sell taxable goods or services in Canada. Once you register, you will charge GST or HST on sales and send the money to the CRA.

Your account looks like this:
Business Number + RT + 0001

Common cases where you need GST or HST:

• Running a shop or online store
• Selling consulting or freelance services
• Renting commercial property
• Running an e-commerce account

Payroll Deductions Account (RP)

If you hire workers, give bonuses, or offer any taxable benefits, you must set up a payroll deductions account. This account tracks deductions for CPP, EI, and income tax.

Your account looks like this:
Business Number + RP + 0001

You need this account before you pay your first employee. It also applies if you pay family members, part-time workers, or seasonal staff.

Import and Export Account (RM)

If you bring goods into Canada or ship goods out, the CRA requires an import or export account. This account links with the Canada Border Services Agency (CBSA). It helps you clear shipments and manage duties.

Your account looks like:
Business Number + RM + 0001

You must set up this account before your first shipment. This account is also needed by:

• Dropshipping businesses
• Amazon FBA sellers
• Global exporters
• Manufacturers importing raw material
• Non-resident importers (NRI)

Corporation Income Tax Account (RC)

Incorporated businesses in Canada have a separate corporation income tax account. You do not need to apply for this account if you are incorporated federally or provincially. It is created for you automatically.

Your account looks like:
Business Number + RC + 0001

You use this account to file T2 returns and make corporate tax payments.

Special Registration Rules for Different Types of Businesses

Not every business follows the same path. Some cases need extra steps or special forms. Here is what you need to know.

Sole Proprietors and Freelancers

Sole proprietors often wonder if they need a BN. You need one when:

• You reach the CA$30,000 sales threshold
• You open a GST or HST account
• You run payroll
• You import or export goods

Freelancers who offer services in Canada may need a BN even if they work from home.

Partnerships and Joint Ventures

Partnerships must register a Business Number when they operate as one unit. This number becomes the main ID for tax filing and program accounts.

Home-Based and Online Businesses

You need a BN if you:

• Sell products from home
• Sell through platforms like Shopify, Amazon or Etsy
• Earn commissions or online income
• Cross the sales threshold

Even small home businesses must follow CRA rules.

Non-Residents Operating in Canada

If you do not live in Canada but run a business here, you still need a BN. You use the RC1 form for non-resident registration. You may need extra documents because you do not have a Social Insurance Number.

This rule applies to:

• Foreign e-commerce sellers
• Non-resident importers
• Global service providers
• Foreign corporations doing business in Canada

Charities and Non-Profit Organisations

Charities need a BN to manage GST or HST rebates, payroll, and import donations. Nonprofits may also need one if they run business activities.

Common Issues When Registering a Business Number

Many owners face delays when applying for a Business Number. Most issues come from missing details, unclear business activity, or choosing the wrong program account. Here are simple ways to avoid problems and keep your registration smooth.

1. Missing or Incorrect Business Information

The CRA may delay your application if your legal name, address, or start date is unclear.
Keep your documents ready before you apply. This includes your legal business name, operating name, SIN if you are an individual, and your start date.

2. Choosing the Wrong CRA Program Account

Many new owners register the wrong program account. For example, they open GST or HST when they are below the CA$30,000 threshold.
If you are unsure which account you need, start with only the BN. You can add your GST or HST, payroll or import account later.

3. Non-Resident Registration Delays

Non-residents often take longer because they lack a Social Insurance Number (SIN). They must use the RC1 form and add foreign identification.
Prepare your passport copy, business formation documents and a Canadian mailing address if you have one. This helps speed up approval.

4. Online Business Activities Not Defined Clearly

When you sell online, you must describe your activity well. A vague description like “online work” slows things down. Explain your e-commerce activity clearly. For example: “selling handmade products on Shopify,” “providing graphic design services,” or “dropshipping household goods.”

5. Forgetting to Add Extra Program Accounts

Some owners register only for GST or HST and forget they also need payroll or import accounts. This creates compliance issues later. Review each account during the registration process. Your BN supports multiple accounts under one ID.

6. Not Updating Your Business Number Information

If your address or structure changes, you must update the CRA.

Updates are simple. Call the CRA or use online services to change your details. Keeping your BN information accurate helps you avoid penalties.

Get Expert Help With Your Business Number Today

Setting up a Business Number in Canada should be simple. You want clear steps, fast registration, and no stress. We help you handle the full process, from choosing the right CRA program accounts to opening GST or HST, payroll, and import accounts.
Book your free consultation today with Bestax Accountants and get your Business Number done right.

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Disclaimer: The information provided in this blog is for general informational purposes only. For professional assistance and advice, please contact experts.