Think of a Business Number (BN) as your company's equivalent of a Social Insurance Number. It’s a unique 9-digit identification number that the Canada Revenue Agency (CRA) assigns to your business to keep track of all its federal government accounts, from taxes to payroll.
If your business were a person, its Business Number would be the main piece of ID it uses for any official business with the federal government. This single number acts as a master key, simplifying how you deal with different government agencies.
Introduced way back in 1999, the BN system was created to bring different government program accounts under one umbrella, making life a whole lot easier for entrepreneurs. You can learn more about how the BN fits into the bigger picture of Canadian business at ClearlyPayments.com.
At its heart, the Business Number is all about streamlining how you communicate and file with the CRA. Instead of juggling a separate number for every tax account, you get one central identifier. This is the number you'll use for critical business activities like:
This unified system makes sure all your company's financial and legal obligations to the federal government are organized under one, easy-to-track number. It’s really the bedrock of your company's compliance.
The most straightforward way to get your Business Number is when you incorporate. The moment you create a new corporation, the CRA automatically assigns a BN, setting you up for success right from the start.
Choosing to incorporate with a trusted service like Start Right Now makes this crucial step completely seamless. Our platform automates the government paperwork, ensuring your BN and any necessary CRA accounts are set up correctly and without delay. This lets you focus on what you do best—building your business—knowing the foundational legal work is handled by experts.
Think of a Business Number as more than just a formality; it's the key that unlocks your ability to operate legally and professionally in Canada. This number transforms your entrepreneurial idea into a legitimate, recognized entity in the eyes of the government. Without it, your business is essentially invisible and can't perform core functions required for growth.
A BN becomes absolutely essential the moment your business hits certain milestones. These aren't obscure rules—they are the fundamental steps every successful company takes. If you plan to hire employees, collect sales tax, or protect your personal assets by incorporating, a BN isn't just a good idea, it's a requirement.
Every business journey eventually reaches a point where getting a BN is no longer optional. Here are the most common triggers that make it a must-have:
These triggers apply to the vast majority of Canadian businesses. Small businesses are the lifeblood of our economy—with 1.29 million operating in Canada as of 2024, they make up nearly 98% of all employer businesses. For these companies, getting a BN isn't a niche requirement; it's a universal and critical step. You can dig into more Canadian small business statistics to see just how significant their role is.
Getting your Business Number isn't just about checking a box for compliance. It's about building credibility. It signals to customers, suppliers, and banks that you are a serious, legitimate operation ready for growth.
When you incorporate with Start Right Now, we handle this crucial step for you from day one. Our platform bundles the incorporation and BN registration process together, so you receive your official corporate status and your CRA Business Number at the same time. This integrated approach removes the guesswork and sets your company on a solid legal footing, ready to succeed.
Your nine-digit Business Number is the foundation of your company's tax identity with the Canada Revenue Agency. But on its own, it’s just the starting point.
Think of your BN as the main phone number for your business. To get to a specific department, you need an extension. The CRA’s program accounts work the same way. They are unique extensions attached to your main BN, each one designed to manage a different type of tax.
This keeps everything neat and tidy. Each program account gets a two-letter code and a four-digit reference number, creating a full 15-character identifier. This ensures your GST/HST payments don't get mixed up with your payroll deductions. You don't need to be a tax pro, but getting familiar with the main accounts is a must for any new business owner.
Let's look at the big three.
For any incorporated business, this is the big one. The Corporate Income Tax (RC) account is created automatically as soon as your corporation is officially registered. It's the central file where the CRA tracks the income tax your company owes on its profits.
Every corporation in Canada has to file a T2 corporate income tax return each year. All of that activity—your filings, payments, and communications with the CRA about your company’s income tax—is managed through your RC account. It’s non-negotiable.
Next up is the Goods and Services Tax/Harmonized Sales Tax (RT) account. This is the account you'll use to handle all things related to sales tax. Think of it as a special piggy bank where you collect GST/HST from your customers before sending it off to the government.
You are legally required to open an RT account and start charging sales tax once your business makes more than $30,000 in worldwide revenue over four consecutive calendar quarters. However, many savvy entrepreneurs register for a GST/HST number right away.
Why? Registering voluntarily from day one allows you to claim back the GST/HST you pay on your own business expenses (these are called Input Tax Credits or ITCs). This can be a real boost to your cash flow. If you want a deeper dive, check out our guide on how to register for a GST number.
If you have staff, you'll need a Payroll Deductions (RP) account. This applies even if you are the only employee of your own corporation and you're paying yourself a salary. This account is where you manage all the deductions you’re required to withhold from employee paycheques.
These deductions include:
The money you withhold is held in trust for the government, and you'll use your RP account to remit these funds to the CRA on a regular basis.
Here’s a quick summary to help you keep these accounts straight.
Getting these program accounts set up correctly is a critical step in launching your business.
Managing these program accounts might seem complex, but it doesn't have to be. The entire process of opening the essential RC, RT, and RP accounts can be handled for you when you incorporate.
Dealing with different government forms and requirements for each account can quickly become a headache. Start Right Now takes care of all this for you. Our incorporation service includes the setup of these vital CRA accounts, so your business is compliant and ready for action from the get-go. We handle the paperwork, letting you focus on what really matters—building your new venture.
So, where does this all-important Business Number actually come from? The Canada Revenue Agency (CRA) issues your unique nine-digit BN the very first time your business registers for any of its main program accounts.
Think of it like getting a social insurance number when you're born or start working. It’s a foundational identifier assigned at a key moment. For a business, that moment is its first official interaction with the federal government's tax system.
While a business can get a BN by registering for a GST/HST or payroll account, the most logical and efficient time to get it is when you incorporate your business.
When you officially register your company as a corporation, whether federally or with a province, the creation of a Business Number is an automatic and built-in part of that process. A corporation is its own legal "person" in the eyes of the law, and the moment it exists, the government needs a way to track it for tax purposes. The BN is that tracker.
Tying your Business Number to your incorporation isn't just a matter of convenience—it’s a smart, strategic move. It means your company is ready for business, banking, and tax compliance from the second it legally exists.
This approach saves you the headache of needing a BN later and having to navigate the CRA's registration process. By bundling these crucial first steps, you build a solid, compliant foundation from the get-go.
Navigating complex government websites to incorporate and then registering for a BN can be a frustrating experience. It’s easy to get lost in the steps, make a mistake, or simply waste time you don't have. This is exactly why a streamlined, all-in-one solution is a game-changer for entrepreneurs.
An expert platform like Start Right Now does all the heavy lifting for you. It automates the legal paperwork to create your corporation, which in turn automatically triggers the CRA to issue your company's BN. You get your incorporation documents and your essential tax ID number at the same time, without any extra steps. You can learn more about this unified approach in our guide to help you incorporate your business in Canada.
This is precisely how Start Right Now makes the whole journey seamless. We don’t just push paper; we manage the entire setup.
Our platform handles the incorporation from start to finish, ensuring your Business Number and any necessary CRA accounts are set up correctly and delivered to you promptly. Your new corporation is fully operational and ready for business the moment you get your final documents. We take care of the complexity so you can get back to building your vision.
Once the CRA issues your Business Number, it stops being an abstract concept and becomes a practical, everyday tool. Think of it as your company’s official passport—the document you’ll flash in nearly every financial and legal interaction to prove you’re a legitimate business ready to operate in Canada.
This number, and the program accounts attached to it, will weave its way into your daily, monthly, and yearly operations. It's not something you can file away and forget. It's an active part of your business's identity that allows you to grow while staying on the right side of regulations.
You'll get used to providing your BN very quickly. It's a non-negotiable part of running a company in Canada. Here are just a few of the most common places you'll need it:
Your Business Number is the central thread that connects all of your company's financial and regulatory activities. Without it, essential tasks like paying taxes, hiring staff, or even opening a bank account become impossible.
Beyond general business activities, those specific CRA program accounts are where your BN really gets put to work. These accounts are directly tied to your BN, and managing them correctly is key to meeting your legal obligations.
For instance, you'll use your:
Keeping these accounts in good standing is serious business. The number of businesses managing these obligations is huge—in early 2025, Canada had 937,097 active businesses with employees, each one relying on a BN to manage its operations. You can find more insights like this in the CFIB's Enterprise Pulse report.
Navigating these requirements isn't optional, and mistakes or delays can lead to penalties and major headaches. That's why having every number set up properly from day one is so important.
With Start Right Now, you don’t have to piece this all together yourself. Our service gets your corporation set up with the right BN and all the necessary program accounts from the get-go. This integrated approach lets you run your business with confidence, knowing your foundation is solid.
Let's be honest: wrestling with government websites to register your business and secure a CRA Business Number is a frustrating experience. The forms are confusing, the jargon is dense, and the whole process can bring your momentum to a screeching halt. Why get bogged down in administrative headaches when you should be focused on building your company?
There's a much better way to handle this. Instead of trying to figure it all out on your own, you can use a guided service built for Canadian entrepreneurs just like you. This ensures everything from your incorporation to your BN registration is done right, in the right order, without the guesswork.
At Start Right Now, we've folded this entire process into one straightforward, seamless flow. We're not just a paper-pusher; we’re here to help you set up your new corporation properly from the ground up.
Think of Start Right Now as your co-pilot for launching a fully compliant and operational company. We deliver your incorporation documents, your Business Number, and your essential CRA program accounts all together, so you can start strong and with complete confidence.
Our platform takes care of all the tricky government interactions behind the scenes, saving you a ton of time and mental energy. You get the peace of mind knowing your company is structured correctly, legally compliant, and ready to grow. We handle the bureaucracy so you can focus on your vision.
To see exactly how our approach simplifies the process, check out our detailed guide on how to get a business number in Canada.
Even with a clear understanding of what a Business Number is, a few questions usually pop up. Let's walk through some of the most common ones so you can feel confident and ready to get your business off the ground.
This is a frequent point of confusion, but the answer is thankfully simple. Your nine-digit Business Number is a federal number issued by the CRA. It doesn't change, no matter where you operate in Canada—from British Columbia to Newfoundland, that number is yours.
That said, you may need to register for specific provincial accounts, like Provincial Sales Tax (PST) in B.C. or Saskatchewan. These accounts are usually managed by provincial bodies, but they're still linked back to your federal BN. This is where having an expert guide you can make a real difference, helping you navigate the interplay between federal and provincial rules.
No, and it's a critical distinction to make. They serve two completely different purposes.
Think of it this way:
So, you'll need your BN to handle your taxes, but you'll need a business licence to legally open your doors and serve customers.
Absolutely. Sole proprietors often need a Business Number, especially if they have to register for a GST/HST account after their revenue crosses the $30,000 threshold.
However, incorporating your business provides a massive advantage that being a sole proprietor just can't offer: personal liability protection. When you incorporate, your business becomes its own legal entity, which creates a protective wall between your business debts and your personal assets (like your house or car). And the best part? The process of incorporating automatically generates your BN for you.
Choosing to incorporate is the most strategic way to formalize your business. It not only provides legal protection but also ensures you receive your Business Number as part of a seamless, foundational process.
Waiting on government processing can feel like a black box—it's slow, unpredictable, and can leave you wondering when you can actually start your business. We get rid of that waiting game.
With Start Right Now, once your business name is approved, we can have your incorporation completed and your Business Number in your hands in as little as one business day. Our platform is built to get your new company fully registered and ready for action much faster than traditional methods, so you can move forward with confidence.
Ready to launch your business the right way? Start Right Now makes incorporation simple, fast, and secure. Get your official incorporation documents, your CRA Business Number, and essential program accounts set up seamlessly. Get started today at StartRightNow.co.
