Registering a CRA Business Number and Program Accounts

When your business is ready to move from a weekend hobby to a formal Canadian business, the administrative checklist grows quickly. One of the first tasks is securing your Business Number (BN) from the Canada Revenue Agency. This unique nine-digit identifier acts as your company's tax ID.

Once you have your BN, you may also need to register for specific program accounts depending on how your business operates. These accounts are appended to your BN to track different reporting obligations.

Setting these accounts up early prevents processing delays and keeps your operations running smoothly as well as helps avoid costly late-filing penalties and interest.

The Three Essential CRA Program Accounts

• GST/HST Account (RT): Required if your gross taxable revenues exceed $30,000 in any single calendar quarter or over four consecutive quarters.

• Payroll Deductions Account (RP): Mandatory the moment you hire your first employee and begin deducting CPP, EI, and income tax.

• Corporate Income Tax Account (RC): Automatically generated when you incorporate your business to handle your annual T2 filing.

  
  

Other optional accounts that can be set up on an as-needed basis include Import-Export (RM), Information Returns (RZ) and Luxury tax (LX).

Business numbers can be applied for at no cost through CRA’s “Business Registration Online” website or by filing “Form RC1, Request for a Business Number”.