Congratulations on becoming self-employed or starting a side job to earn extra money! Amidst the excitement, you might have come across the term “business number” (BN) and wondered what it’s all about. This guide will break down everything you need to grasp about obtaining a BN as a self-employed individual or a small business owner. 

Key Points to Remember 

• The CRA business number is a unique 9-digit code given to each business. 
• As a sole proprietor, you might not need a BN unless you require specific program accounts like payroll or GST/HST. 
• A GST/HST number is an additional code tagged onto your unique business number. 
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What Exactly is a Business Number? 

A business number (BN) is a 9-digit identifier provided by the Canada Revenue Agency (CRA) to businesses and self-employed persons in Canada. It serves as a standard way for the CRA to recognize your business. Every BN is specific to one business or legal entity. 

Do Sole Proprietors Need a Business Number? 

If you’re a sole proprietor or part of a partnership and need what the CRA calls “program accounts,” you’ll need a business number. These accounts can be for GST/HST, payroll, corporation income tax, or import/export activities. 

Common program accounts include: 

• GST/HST (RT) for businesses collecting GST/HST. 
• Payroll deductions (RP) for incorporated businesses with employees. 
• Corporation income tax (RC) for incorporated businesses. 
• Import-export (RM) for businesses involved in importing or exporting. 

By registering for a CRA program account, you’ll either be assigned a business number or have the account added to your existing one. Your business will have just one BN, with additional codes indicating the type of account you have. 

You’ll need a BN if your business is incorporated or to interact with federal, provincial, and municipal governments in Canada. 

Registering for a Business Number 

You can register for a BN through the CRA’s Business Registration Online (BRO). You might also automatically receive a BN when you: 

• Register for CRA program accounts. 
• Federally incorporate your business. 
• Register or incorporate your business in specific provinces (British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Saskatchewan). 

If changing your business’s legal ownership or structure, you may need a new BN. For more information, check the CRA’s guidelines on business changes. 

Is a GST/HST Number Different from a Business Number? 

The GST/HST number is an extension of your business number, not a separate entity. Small businesses earning under $30,000 annually aren’t required to have a GST/HST number but will maintain their unique BN. 

Examples of Business Numbers 

A BN consists of 9 digits, such as 123456789. If you have CRA program accounts, two letters and four numbers will follow this, like: 

• Payroll accounts: 123456789RP0001, 123456789RP0002, 123456789RP0003 
• GST/HST account for a sole proprietorship exceeding the $30,000 limit: 123456789RT0001 
• Payroll deductions account: 123456789RP0001 
• Corporation income tax account after incorporation: 123456789RC0001 

Additional CRA Program Accounts 

While not all self-employed professionals will need other program accounts, it’s useful to know they exist. These can include accounts for excise duty (RD), excise tax and special levies (RE), air travelers security charge (RG), insurance premium tax (RN), registered charities (RR), and softwood lumber (SL). 

For comprehensive information on registering for a business number, visit the CRA’s official website.