Learn How to Get a Tax ID Number in Canada
How to Get a Tax ID Number (Business Number) in Canada
The Canada Revenue Agency's Business Registration Online service has The tax ID number (also called a Business Number) is part of the 15 character program account number assigned to your business by the Canada Revenue Agency (CRA). The program account number consists of three parts:
- the nine-digit Business Number (BN) that identifies your business
- a two-letter identifier for the program type
- a four-digit reference number for the program account
The program account number format would look like this: 123456789 RT0001
Think of your Business Number as your business tax ID number because that's basically what the Business Number is for. The CRA assigns your company a Business Number when you first register for any one of the four major program accounts you will need to operate your business:
The nine-digit tax ID number (Business Number) is the same across program accounts; the program ID and number will change depending on which of the above program accounts the ID/number refers to.
(Note that in Quebec, the Business Number does not include your GST/HST accounts. You need to register for a separate GST/HST account with Revenu Québec. You can look into Revenue Québec's General Information Concerning the QST and the GST/HST if you need further clarification.
There are also a few other tax accounts that you will need a tax ID number/Business Number for if they apply to you, such as Excise Tax.
Does Every Business Need a Tax ID Number?
If your small business does not need any of the tax accounts listed above (i.e., you are a Small Supplier in terms of the GST/HST—which means you don't have to register for GST/HST)—then your small business doesn't have to have a Business Number.
Do I Need a Separate Business Number for Each Business I Own?
If you are a sole proprietor with multiple businesses who needs a Business Number, one Business Number will cover all of them, as long as none of those businesses is a partnership, trust, or corporation.
If so, each will need its own Business Number.
How Do I Get a Tax ID Number?
You can register for a Business Number from CRA several ways:
- Online using the CRA Business Registration Online (BRO) service.
- By phone at 1-800-959-5525. You will have to verbally answer the questions from form RC1, Request for a Business Number (BN).
- By filling out form RC1, Request for a Business Number (BN) and mailing or faxing it to the nearest tax service office or tax center.
You can register for any of the above program accounts at the same time you request a Business Number.
What if I Need My Business to Be Federally Incorporated?
If you intend to incorporate your business federally, the Business Number is supplied by Industry Canada when your incorporation is approved. To apply for federal incorporation you can visit Corporations Canada and be sure to Learn the difference between federal and provincial incorporation, beforehand. After receiving the Business Number from Industry Canada you can then apply for any of the above mentioned tax ID program accounts through the CRA.
BRO Links With Online Provincial Business Registries
The CRA has forged partnerships involving the Business Number with many of the provinces, including:
- British Columbia
- Nova Scotia
- New Brunswick
For these provinces, the Tax ID number/ Business Number is the main business account identifier for an ever-increasing number of provincial programs.
When you finish registering your Business Number (using the Business Registration Online service) you can transfer directly to an online provincial business registration service to register your business in any of the following provinces:
- British Columbia – OneStop Business Registry
- Ontario – ServiceOntario – Business services
- Nova Scotia – One Business - One Number
Other program signups can be performed at the same time. For instance, when you register online for a Business Number for a business in Ontario, in addition to registering a business name you can also:
- Register for the Ontario Employer Health Tax
- Register with the Ontario Workplace Safety and Insurance Board.
If you want a complete listing of all available programs, then head over to The Canada Revenue Agency's Business Registration Online service.