If you're starting or growing a business in Canada, one of your first interactions with the Canada Revenue Agency will involve getting a Business Number. Whether you're incorporating a company, hiring your first employee, or crossing the threshold for GST/HST collection, understanding how the BN system works will save you time and help you stay compliant from day one.
A Business Number (BN) is a unique 9-digit identifier assigned by the Canada Revenue Agency to your business. Think of it as your business's social insurance number — it's the key that links all your CRA dealings under one roof. Every business that needs to interact with the CRA receives a single BN, and that number stays with the business for its lifetime.
What makes the BN system efficient is how program accounts are structured. Rather than issuing separate numbers for each type of tax obligation, the CRA adds a 2-letter program identifier and a 4-digit reference number as a suffix to your BN. So if your Business Number is 123456789, your GST/HST account would appear as 123456789 RT 0001, and your payroll account as 123456789 RP 0001. One core number, multiple accounts — clean and traceable.
The trigger for BN registration depends on your business structure and activity.
If you incorporate federally through Corporations Canada, or provincially through a registry such as Alberta's Corporate Registry, a Business Number is issued automatically as part of the incorporation process. You don't need to apply separately — the registry sends your information to the CRA, and a BN is generated. However, automatically receiving a BN does not mean your program accounts (GST, payroll, etc.) are open. You'll need to register those separately.
Unincorporated businesses register for a BN when they need to open a specific program account. The most common triggers are:
The CRA offers three ways to register, and for most business owners, the online route is the clear winner.
The fastest method is through the CRA's Business Registration Online service at canada.ca. For most applicants, registration takes only a few minutes, and your BN is issued immediately upon completion. You can simultaneously open program accounts during the same session, avoiding a return visit later.
Before you start, have the following ready:
You can call the CRA Business Enquiries line and register with an agent. This can be useful if your situation is more complex or if you have questions about which program accounts to open at the same time. Wait times vary, so set aside adequate time for this route.
For those who prefer paper, Form RC1 (Request for a Business Number and Certain Program Accounts) can be completed and mailed to the CRA. Processing time is significantly longer than the online option, so this route is generally only recommended when online registration isn't feasible.
Once you have a BN, you can open the program accounts relevant to your business activities. Each account uses a specific 2-letter identifier as part of the suffix.
This account is used for collecting GST/HST from customers and remitting it to the CRA. Alberta businesses collect only the 5% federal GST (Alberta has no provincial sales tax). When you register, you'll choose a reporting period — annual, quarterly, or monthly — based on your expected revenue. Small suppliers under $1,500,000 in annual taxable supplies typically use annual or quarterly filing.
Required before your first payroll run, this account handles the remittance of Canada Pension Plan contributions, Employment Insurance premiums, and employee income tax deductions. Once a payroll account is open, remittances must be made on a regular schedule even in periods where deductions are zero.
Corporations use this account to file T2 corporate income tax returns and make tax payments. This account is typically set up automatically when a corporation is issued a BN through incorporation.
If your business imports goods into Canada or exports goods to foreign markets, you'll need this account before your first shipment. The Canada Border Services Agency (CBSA) uses the BN with the RM suffix to process commercial shipments.
This account is used for filing information slips with the CRA, including T4 slips (employment income), T5 slips (investment income), and other third-party reporting. Businesses with employees will typically need both an RP account and an RZ account.
You can request a GST/HST account at the same time as your BN registration, or add it later through My Business Account on the CRA website. When setting up the account, you'll confirm:
If you crossed the $30,000 threshold and didn't register right away, the CRA may require you to remit GST/HST back to the date you were required to register — another reason to act promptly.
A payroll account must be open before your first payroll run — not after. The CRA is firm on timing here. Once your account is active, you're required to remit payroll deductions on a regular schedule based on your average monthly withholdings. This schedule is assigned by the CRA and may be accelerated as your payroll grows.
Even in a pay period where an employee has no net deductions (for example, a part-time worker below basic personal amounts), you still need to report to the CRA if you've been assigned a remittance frequency. Missing remittances triggers penalties and interest, which can add up quickly for small businesses.
A federal Business Number does not replace provincial registration requirements. In Alberta:
At Swift Accounting Calgary, we regularly help new business owners navigate both federal BN registration and the associated provincial requirements, so nothing falls through the cracks during setup.
Business number registration is straightforward in most cases, but the downstream obligations — remittance deadlines, filing frequencies, correct effective dates — can trip up new business owners who aren't familiar with CRA processes. An error in your GST effective date or a missed payroll remittance can result in penalties that are entirely avoidable with proper setup.
Whether you're incorporating, launching a sole proprietorship, or expanding into payroll for the first time, the team at Swift Accounting is here to make sure your CRA accounts are set up correctly and your compliance obligations are clear from day one.
Ready to get your Business Number and program accounts set up properly? Contact Swift Accounting today and we'll walk you through the process.
If your taxable supplies are below $30,000 and you don't have employees or import/export activity, you are not required to register for a BN. You are considered a "small supplier" and are exempt from mandatory GST/HST registration. However, you may choose to register voluntarily — which can be advantageous if you want to claim input tax credits on business expenses or if your clients are GST-registered businesses who prefer to work with registered suppliers.
If you register online through the CRA's Business Registration Online service, your BN is issued immediately upon completing the application — typically within a few minutes. Phone registration is also relatively quick but depends on wait times. Mail registration using Form RC1 takes considerably longer, often several weeks, so online registration is strongly recommended for time-sensitive situations.
Yes — that is exactly how the BN system is designed. A single 9-digit Business Number can have multiple program accounts attached to it, each identified by a 2-letter suffix. For example, a corporation that collects GST, runs payroll, and files information slips would have RT, RP, and RZ accounts all linked to the same BN. You can open additional program accounts at any time through My Business Account on the CRA website.
Once you exceed $30,000 in taxable supplies, you are legally required to register and begin collecting GST/HST. If you continue to operate without registering, the CRA can require you to remit the GST you should have collected — even if you didn't charge it to your customers — back to the date you were required to register. Penalties and interest may also apply. The safest approach is to monitor your revenue closely and register as soon as you approach or cross the threshold.
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