When starting a business in Canada, one of the first steps is obtaining a Business Number (BN) from the Canada Revenue Agency (CRA). This unique identifier is crucial for tax purposes and other business dealings with the Canadian government. Whether you’re registering for GST/HST, payroll deductions, or corporate income tax, the BN is a vital piece of your Canada business setup.
What is a Business Number (BN)?
A Business Number (BN) is a nine-digit number issued by the Canada Revenue Agency (CRA) to identify your business. It serves as a reference number for various business accounts, including:
- GST/HST account
- Payroll account
- Corporate income tax account
- Import/export account
The BN is used by federal and provincial governments to streamline business dealings and ensure that businesses comply with various tax and reporting requirements.
Why Do You Need a Business Number?
If you’re planning to run a business in Canada, the BN simplifies your business setup in Canada by providing a centralized way of managing your tax obligations and government services. Whether you’re operating a sole proprietorship, partnership, or corporation, you will need a BN to:
- Register for GST/HST (if your business exceeds the annual threshold of $30,000 in revenue).
- Set up payroll deductions for employees.
- File corporate taxes and claim deductions.
- Import or export goods.
- Access other government programs and services related to your business.
Steps to Obtain a Business Number from the CRA
The process of obtaining a BN is straightforward. Follow these simple steps:
- Determine Your Business Structure: Before you can obtain your BN, decide whether you will operate as a sole proprietorship, partnership, or corporation. This decision will impact how you register and file taxes.
- Register with the CRA:
- Online: Visit the CRA website and use the online Business Registration Service. This is the fastest and most convenient way to register your business and receive a BN.
- By Phone: You can call the CRA’s Business Enquiries line at 1-800-959-5525 and register over the phone.
- By Mail or Fax: Download the necessary forms from the CRA website and submit them by mail or fax.
- Provide Required Information: During registration, you’ll be asked to provide basic business details, including:
- Your business name
- Your business structure
- Your address
- A description of your business activities
- Your social insurance number (SIN) or a corporation number (if applicable)
- Receive Your Business Number: After successful registration, you will receive your BN. If registering online, you’ll get the number immediately. If registering by mail or phone, it may take several weeks to receive your BN.
- Set Up Relevant Accounts: Depending on your business needs, you can use your BN to set up GST/HST, payroll, and other necessary accounts with the CRA.
What to Do After Obtaining Your BN?
Once you’ve obtained your BN, it’s essential to keep it safe and use it in all your dealings with the CRA and other government agencies. You will need this number for filing taxes, paying employees, and managing various business accounts.
Additionally, ensure you comply with all tax obligations, file your business returns on time, and maintain proper records of your financial transactions.
Conclusion
Obtaining a Business Number (BN) is a crucial part of the Canada business setup process. It helps ensure that your business complies with federal and provincial regulations, streamlines tax reporting, and allows you to access various business-related services. By following the steps outlined above, you can easily obtain a BN from the CRA and begin your journey toward a successful business in Canada.
Also Read: Understanding the Singapore Companies Act for Entrepreneurs
