The business number BN is a 9-digit account number that identifies your business to federal, provincial, and municipal governments. A business entity is assigned only one BN regardless of the number of business locations or businesses that are owned by that business entity. A business entity is defined as a sole proprietorship, partnership, corporation, trust, government or any other identifiable entity such as a charitable organization.
Registration for a BN is not restricted to commercial businesses. For example, a client who takes payroll deductions from their nanny would not be considered a commercial business, but still can register for a BN. If you are a sole proprietorship, partnership or corporation you can obtain a BN in real time through the Business Registration Online. You can also register for a BN by mail, fax or telephone. For more information, visit the CRA website. Additional information is available for businesses operating in Quebec.
It is an essential step towards more efficient business-to-government interactions. As CIPO modernizes client-facing services, the business number field will be added to client service forms as well as intellectual property granting and registering forms. Currently, businesses must repeat the same identification information when registering to programs. But what is a Business Number?
It is based on the idea of one business, one number. A business needs a BN to register for one or more of the following government program accounts :. In some cases, businesses may be able to communicate with the CRA using just the social insurance number of their principal owner.
However, as soon as a business wishes to register for any of the above program accounts, it can no longer use that social insurance number and must apply for a BN.
For instance, if you have employees such as nannies or housekeepers, you may need a BN. To know whether or not you are an employer, you need to determine if the person you are paying ie. In the case that you set a regular schedule for this person and closely supervise his or her activities, they would most likely be considered your employee.
Subsequently, you would be considered a sole proprietor. In this case, you would need to obtain a BN to set up payroll. However, if the person you hire has control over how the task is completed, they can be considered an independent contractor and you would not need a BN.
A BN is a nine-digit number that is used to create the identifier codes for your business accounts. A 4-digit reference number that identifies an individual CRA program account. Disclaimer: This article provides general information and should not be construed as tax advice. Since tax rules may change over time and can vary by location and industry, please consult a CPA or tax advisor for advice specific to your business.
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