Establishing your business in Canada starts with obtaining a Business Number (BN) from the Canada Revenue Agency (CRA). This unique identifier allows you to register for key CRA program accounts such as GST/HST, payroll, and import/export services. At GTA Accounting, we assist businesses with the application process, and to get started, we need specific preliminary information. This blog outlines the essential details you must provide us so we can successfully apply for your Canadian Business Number.
What is a Canadian Business Number (BN)?
A Business Number is a nine-digit identifier the CRA assigns as a standard identifier for businesses when dealing with the government. This number is essential if your business needs to:
- Register for the Goods and Services Tax (GST) or Harmonized Sales Tax (HST).
- Open a payroll account.
- Register for an import/export account.
- File corporate taxes.
For more information, refer to the CRA’s official Business Number (BN) page.
Why You Need a Business Number
Obtaining a Business Number is essential for tax compliance and legal operations if your business operates in Canada or has financial dealings with Canadian entities. A BN streamlines interactions with the CRA and ensures that your business’s taxes and filings are organized efficiently.
Preliminary Information You Need to Provide
Before we can apply for your Business Number, we need you to supply some key information about your business. Here's a checklist of what we require to begin the application process:
1. Legal Name of the Business
The legal name of your business is the name registered with the government. This name will appear on your business number application and any official documents from the CRA. If you are registering as a sole proprietorship, this will typically be your full name.
2. Business Structure
You need to indicate the legal structure under which your business operates. The structure affects your tax obligations and other regulatory requirements. The common structures include:
- Sole proprietorship
- Partnership
- Corporation
- Cooperative
Choosing the correct structure is important as it determines your tax filings and liabilities. The CRA provides more information on Choosing a Business Structure.
3. Business Address
We need your principal business address, which is your business's official location. The CRA will use this address to send correspondence related to your Business Number or tax accounts. Please make sure the address provided is accurate and up to date.
4. Business Contact Information
Provide your business’s primary contact details, including:
- Phone number
- Email address
- Fax number (if applicable)
These details ensure that the CRA can reach your business for any queries or correspondence related to your application.
5. Owner or Director Information
For sole proprietorships, partnerships, and corporations, it’s essential to provide the details of the business owners or directors. The information required includes:
- Full legal names
- Social Insurance Numbers (SIN)
- Contact information (address, phone number, and email)
This information helps the CRA associate the business with the individuals responsible for its operations.
6. Date of Business Commencement
We need to know your business' official start date. This is the date your business begins operations or when you plan to launch your business if it's not yet operational. The CRA will use this information to establish when your tax obligations begin.
7. Estimated Revenue
If possible, provide an estimate of your annual revenue. This helps determine your GST/HST registration status and other relevant tax obligations. Businesses earning over $30,000 in annual gross revenue must register for a GST/HST account. Learn more about GST/HST registration.
8. Nature of Business Activities
A brief description of the type of business activities you engage in is required. This description helps the CRA understand the nature of your business and assign the correct classifications for your industry.
- Examples: Consulting services, retail sales, construction, manufacturing, etc.
9. CRA Program Accounts You Need
Depending on your business activities, you may need one or more of the following CRA program accounts, which are linked to your BN:
- GST/HST: For businesses required to collect and remit sales tax.
- Payroll: For companies with employees to manage payroll tax obligations.
- Import/Export: For businesses involved in international trade.
Let us know which accounts you need so we can include them in your Business Number application. More details are available on CRA Program Accounts.
Why Work with GTA Accounting to Apply for Your Business Number?
At GTA Accounting, we understand that applying for a Business Number can seem overwhelming, mainly when focused on growing your business. Our team takes the guesswork out of the process by ensuring that all necessary information is gathered and submitted accurately.
Conclusion
Providing preliminary information to apply for your Canadian Business Number is a vital first step in setting up your business operations in Canada. Ensuring you have all the required details, you can streamline the process and get your business set up efficiently. GTA Accounting is here to assist if you’re unsure about any aspect of the application process. Contact us today, and let’s get started securing your business number with the CRA.