About CRA Business Number and Program Accounts
GST/HST, Payroll, Import/Export, and More – Do You Need Them and How Do You Get Them?
Once you register your business as a corporation, sole proprietorship, or partnership, or begin operating a business in your own name, you may be required to obtain a CRA Business Number (BN) and one or more CRA program accounts to properly administer your tax and reporting obligations.
It is important to note that a CRA Business Number is not the same as:
- A corporation number issued during incorporation, or
- A Business Identification Number (BIN) issued by a provincial registry (such as Service Ontario)
Each serves a different purpose and is issued by a different authority.
What Is a CRA Business Number?
A CRA Business Number (BN) is a unique nine-digit identifier assigned by the Canada Revenue Agency to businesses and self-employed individuals. The CRA uses the BN as a standard reference to identify a business when administering taxes and other government programs.
Each BN is unique to a specific business or legal entity and remains the same for the life of that business, even if multiple program accounts are added.
When Do You Need a Business Number?
Not all businesses require a Business Number. You generally need a BN if you:
- Incorporate your business
- Register for GST/HST
- Have employees and must remit payroll deductions
- Import or export goods or services
- File information returns (such as T5 slips for dividends)
- Interact with certain federal, provincial, or municipal government programs
Special Situations
In some cases, individuals may require a BN even if they do not consider themselves business owners. For example, if you hire a nanny, caregiver, or personal assistant, you are required to open a Payroll (RP) program account, which requires a Business Number.
What Is a CRA Program Account and Who Needs One?
CRA program accounts are specific tax or reporting accounts linked to your Business Number. Each program account consists of:
- Your nine-digit BN
- A two-letter program identifier
- A four-digit reference number
Each program account has its own registration thresholds, filing requirements, and compliance rules.
Common CRA Program Accounts
- GST/HST (RT) – Required if your business collects GST/HST
- Payroll Deductions (RP) – Required if your business pays employees
- Corporate Income Tax (RC) – Required for incorporated businesses
- Import/Export (RM) – Required if your business imports or exports goods
- Information Returns (RZ) – Required for filing certain slips (e.g., T5 dividends)
Example of a Business Number and Program Accounts
A business that has exceeded the $30,000 small supplier threshold and employs staff may have the following:
- Business Number: 123456789
- Corporate Income Tax Account: 123456789 RC 0001 (corporations only)
- GST/HST Account: 123456789 RT 0001
- Payroll Account: 123456789 RP 0001
Each program account operates independently but is linked to the same Business Number.
Why Proper Registration Matters
Properly registering and maintaining your Business Number and program accounts ensures compliance with CRA regulations and helps avoid penalties, interest, and unnecessary audits. Mismanagement of CRA accounts can lead to significant tax, legal, and reporting issues.
For this reason, it is strongly recommended to consult with a qualified professional. Diamond CPA PC can assist you in determining which program accounts you need, registering them correctly, and managing ongoing compliance.
How to Get a Business Number and CRA Program Accounts
There are several ways to obtain a Business Number:
1. Through CRA Program Registration
If you register for a CRA program account (such as GST/HST, Payroll, or Import/Export), you will automatically be assigned a Business Number, as all program accounts are built on the BN framework.
2. During Incorporation
- Federal incorporation: A Business Number is typically issued along with your incorporation documents.
- Provincial incorporation: Some provinces, such as Ontario, issue a Business Number during registration through the provincial business registry.
3. CRA Business Registration Online (BRO)
The easiest and most efficient way to register for a Business Number and program accounts is through the CRA Business Registration Online (BRO) service. Simply select “Register” and follow the guided steps.
4. By Mail or Phone
- Complete Form RC1 and mail or fax it to your local tax services office
- Register by phone by calling 1-800-959-5525
Information Required to Register for a Business Number
When applying for a Business Number, you will typically need to provide:
- Social Insurance Number (SIN)
- Legal name
- Date of birth
- Residential postal code
- Registered business name
- Corporation number or Business Identification Number (BIN), if applicable
- Type of business (sole proprietorship, partnership, corporation, trust, etc.)
- Names and SINs of owners or directors
- Physical and mailing business addresses
- Business phone number
- Description of your primary business activity
Final Note
Understanding when and how to register for a CRA Business Number and the appropriate program accounts is essential for operating a compliant and efficient business in Canada. Making the right decisions early can prevent costly errors and administrative challenges in the future.
For personalized guidance, Diamond CPA PC is available to support you at every stage of your business journey.
Disclaimer
The information provided in this article is for general informational purposes only and does not consider your personal circumstances. It should not be relied upon without consultation with a qualified accounting professional. Diamond CPA PC is not responsible for any issues arising from the use of this information.