Question: Do I need a Business Number and how do I get a Business Number?
Answer:
You can think of your Business Number as your business tax ID number because thats basically what the Business Number is for. The Canada Revenue Agency assigns your company a Business Number when you register for any one of the four major tax accounts you will need to operate your business:
- the GST/HST,
- payroll deductions,
- import/export,
- corporate income tax.
The Business Number is a 15 character identifier of your business. It actually has two parts; a nine digit number that identifies your business, and a 6 character portion composed of letters and numbers that identifies the particular tax account. The nine digit number part of the Business Number never changes; the second part of the Business Number will change depending on which tax account the number refers to. (You can see why I call it a business tax ID number.)
Note that in Quebec, the Business Number does not include your GST/HST accounts. You need to register for a GST/HST account with Revenu Québec. Their toll-free number is 1-800-567-4692.
Do you need a business number? Only if you are doing (or going to be doing) any of the four business activities listed above. If not, having a business number is not a necessity.
To get a Business Number, you can contact the Canada Revenue Agency by phone at 1-800-959-5525, mail or fax, or register for a Business Number online.
If you choose to register by mail or fax, you will have to fill out Form RC1, Request for a Business Number (BN).
To complete this form, you will need to know:
- the name of the business,
- its location,
- its legal structure (e.g., sole proprietorship, partnership, or corporation),
- its fiscal year-end, and
- an estimate of your business's sales.
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