What Is a CRA Business Number (BN) and Who Needs One?
TurboTax Canada
January 22, 2024 | 4 Min Read
Updated for tax year 2023
You’re finally self-employed and in control of your own schedule and income— congratulations! Or perhaps you’ve decided to start a side gig to pull in some extra cash. Great news! Amid all this excitement, you may have heard about something called a business number (BN)—but maybe you’re not exactly sure what it is?
Wonder no more. Here’s everything you need to know about registering for a BN as a self-employed person or small-business owner.
Key Takeaways
- A CRA business number (BN) is a unique identifier for every business, comprised of 9 digits that is needed to complete your tax return.
- A sole proprietor may not be required to get a business number if they do not need program accounts, such as payroll or GST/HST.
- A GST/HST number is a specific code that is added to the end of the unique business number.
What is a business number?
A business number, or BN, is a 9-digit number issued by the Canada Revenue Agency (CRA) to businesses and self-employed persons. The CRA uses the BN as a standard identifier for your business. Each BN is unique to a business or legal entity.
Do I need a business number if I’m a sole proprietor?
You need a business number if you’re a sole proprietor or if you’re in a partnership and require what the CRA refers to as “program accounts.” Program accounts include GST/HST, payroll, and import/export accounts.
The most common program accounts are:
-
GST/HST (RT) – if your business collects GST/HST
-
Payroll deductions (RP) – if your business is incorporated and pays employees, yourself included
-
Corporation income tax (RC) – if your business is incorporated
-
Import-export (RM) – if your business imports goods or sells goods or services abroad
Registering for a CRA program account will get you a business number if you don’t already have one. If you do have one, the CRA program account will be added to your business number. Your business will only ever have 1 business number, and the program code or reference number that’s added to the end indicates which type of account your company has.
You’ll need a BN if your business is incorporated. And you might also need a business number to interact with other federal, provincial, and municipal governments in Canada.
How do I register for a business number?
You can register directly with the CRA using Business Registration Online (BRO).
Alternatively, you will get a BN automatically if you do any of the following:
-
Register for any CRA program accounts (like GST/HST, payroll deductions, or import-export)
-
Incorporate your business federally
-
Register or incorporate your business with these provinces:
-
British Columbia
-
Manitoba
-
New Brunswick
-
Nova Scotia
-
Ontario
-
Saskatchewan
-
If you already have a business number and you want to change the legal ownership or structure of your business, you may have to register for a new business number. For more information, go to “Changes to your business and Canada Revenue Agency program accounts.”
Is a GST/HST number the same as a business number?
The GST/HST is not the same as a business number. The 9-digit business number always stays the same, and the goods and services tax (GST)/harmonized sales tax (HST) number is appended to the end of it.
If you operate a small company that sells less than $30,000 in goods or services each year, you’re not required to register for a GST/HST number. You would still have your unique business number—but it wouldn’t have the added GST/HST identifier.
What are some business number examples?
The business number is a unique number comprised of 9 digits. So it might look something like this:
-
Business number: 123456789
If the business also has CRA program accounts, the business number will have 2 letters and 4 numbers attached to it.
A CRA program account number has three parts:
-
The 9-digit business number to identify the business
-
A 2-letter program identifier code to identify the CRA program account
-
A 4-digit reference number to identify an individual CRA program account (since businesses can have more than one of the same type of account)
Here’s a possible example:
Company ABC has a payroll account for regular employees, one for contract employees, and one for employee bonuses—three in total—thus it would have payroll accounts registered with the CRA that look like this:
-
123456789RP0001
-
123456789RP0002
-
123456789RP0003
Now let’s say Company XYZ is a sole proprietorship that has surpassed the $30,000 small supplier threshold, so it must begin collecting and remitting GST/HST. The company also has one or more employees and needs a payroll deductions program account. Once registered, the business will receive a:
-
Business number: 123456789
-
GST/HST program account number: 123456789RT0001
-
Payroll deductions program account number: 123456789RP0001
If the business later incorporates, it will need to register for a corporation income tax account. That identifier will be added to its existing business number:
-
Corporation income tax account number: 123456789RC0001
H2: What other CRA program accounts are there?
While you may not need other program accounts as a self-employed professional, it’s good to know they exist.
For example, a business that files information returns, such as a return for a Tax-Free Savings Account (TFSA), T5 (Return of Investment Income), or T5013 (Partnership Return), may also need an information return (RZ) business account.
Certain businesses may need additional program accounts, such as:
-
Excise duty (RD)—for businesses that need to charge excise duty on products
-
Excise tax and special levies (RE)—for businesses that need to charge excise tax on products
-
Air travellers security charge (RG)—for air carriers that charge the air travellers security charge
-
Insurance premium tax (RN)—for brokers and agents who write contracts of insurance
-
Registered charity (RR)—for charity organizations
-
Softwood lumber (SL)—for businesses that export softwood lumber products
For complete details on business number registration, visit the CRA webpage.
File with Confidence
Get advice and answers as you go, with a final tax expert review before you file.
Get StartedRelated articles
CANADA REVENUE AGENCY
Tax Implications of Client and Employee Gifting and Receiving
Read more
© 1997-2024 Intuit, Inc. All rights reserved. Intuit, QuickBooks, QB, TurboTax, Profile, and Mint are registered trademarks of Intuit Inc. Terms and conditions, features, support, pricing, and service options subject to change without notice.
Copyright © Intuit Canada ULC, 2024. All rights reserved.
The views expressed on this site are intended to provide generalized financial information designed to educate a broad segment of the public; it does not give personalized tax, investment, legal, or other business and professional advice. Before taking any action, you should always seek the assistance of a professional who knows your particular situation for advice on taxes, your investments, the law, or any other business and professional matters that affect you and/or your business.