Learn what a CRA Business Number (BN) is, why it matters for your business, and who’s required to have one in Canada.
If you’re starting a business in Canada, one of the first things you’ll come across is the CRA Business Number (BN). A BN is a unique 9-digit number issued by the Canada Revenue Agency that acts as an ID for your business when dealing with the federal government.
Not every business needs one right away, though. If you’re operating as a sole proprietor without employees and not collecting sales tax, you might not need to register just yet. But as soon as you expand, the CRA will likely require it. If you plan to open a business in the near future, consider this your guide to BNs and, of course, how to obtain one.
What Exactly Is a CRA Business Number?
A CRA Business Number (BN) is like a social insurance number but for your business. It’s a unique, 9-digit identifier issued by the Canada Revenue Agency (CRA) when you register for certain federal programs or taxes.
It’s not the same as your business license or name registration, though. This number strictly connects to your tax accounts, and you only need one BN, even if you have multiple tax accounts under your business.
Why Your Business Might Need a BN
A BN is like your business’s tax ID; it’s a unique number that helps the government identify your company for tax and regulatory purposes. You’ll need it if you’re registering for programs like GST/HST, payroll deductions, import/export accounts, or corporate income tax.
Even if you’re a sole proprietor, once you go beyond the basics, like hiring employees or charging sales tax, a BN becomes necessary. It helps with CRA processes and keeps your business compliant, so if you’re growing, hiring, or expanding into new territory, having a BN is not only essential, it’s a legal requirement.
Who’s Required to Register for a Business Number?
Now, you might be wondering whether you need to register for a CRA Business Number (BN). The short answer? If you’re dealing with the Canada Revenue Agency for things like collecting GST/HST, paying employees, importing/exporting, or incorporating your business, then yes, you’ll need one.
Sole proprietors, partnerships, and corporations all fall into this category once they engage in any of those activities. Even if you’re running a small side hustle, the moment you cross the threshold where GST/HST registration is required (usually $30,000 in revenue), a BN becomes necessary.
Still unsure if you need one? Have a look below:
| Business Type | Needs A BN? | When/Why A BN Is Required |
| Sole Proprietorship | Sometimes | If registering for GST/HST, payroll, import/export, or business name |
| Partnership | Sometimes | If registering for GST/HST, payroll, import/export, or business name |
| Incorporated Business | Yes | Required upon incorporation (federal or provincial) |
| Non-Profit Organization | Yes | If applying for tax-exempt status, payroll, or GST/HST |
| Trusts & Estates | Yes | Needed when managing business income or tax filings |
| Freelancer / Contractor | Sometimes | If required to register for GST/HST or payroll |
| Online Business | Sometimes | If earning income and required to charge tax or hire employees |
| Farm / Agricultural Business | Sometimes | If registering for any CRA program (e.g. GST/HST, payroll) |
| Import/Export Business | Yes | Required for import/export account setup with CRA |
How to Get Your CRA Business Number
Getting your CRA Business Number (BN) is a straightforward process, and it’s an essential first step when starting a Canadian business. You can apply for one online through the Canada Revenue Agency’s Business Registration portal, or if you prefer, you can register by phone or mail.
To complete the application, you’ll need to provide some basic information about your business, such as its legal name, structure (sole proprietorship, partnership, corporation, etc.), business activity, and contact details.
Once registered, the CRA assigns you a unique nine-digit BN that identifies your business across federal programs like GST/HST, payroll deductions, and import/export. It’s a one-time registration, but you may need to add program accounts as your business grows.
Understanding what a CRA Business Number (BN) is, and whether you need one, is an important first step in running a compliant and organized business in the Great White North. If you currently own a business in Canada, you more than likely need a BN. But remember, the process is straightforward, and once you have it, you’ll be set up to handle your business’s federal tax obligations properly.
