TAX IDENTIFICATION NUMBER

Contact Neufeld Legal PC for your incorporation legal work at 403-400-4092 / 905-616-8864 or Chris@NeufeldLegal.com

A corporation's primary tax identification number from the Canada Revenue Agency is the Business Number (BN).

• The Business Number (BN): This is a unique 9-digit number assigned to your corporation by the Canada Revenue Agency. It acts as the standard identifier for your business with federal, provincial, and even some municipal governments. Every corporation must have its own BN.

• The Program Account Number (Complete Tax ID): This is the 15-character number that fully identifies a specific tax account for your business. It is made up of three parts:

  • The 9-digit Business Number (BN) that identifies your corporation.

  • A 2-letter program identifier that specifies the type of tax program (e.g., RC for Corporate Income Tax).

  • A 4-digit reference number that identifies the specific account within that program (e.g., 0001).

The Business Number is essential for a corporation to operate legally and meet its tax obligations in Canada.

A. Tax Compliance and Filing

The BN is the foundation for all your corporation's tax filings with the Canada Revenue Agency.

• Corporate Income Tax: As an incorporated business, you are legally required to file a T2 Corporation Income Tax Return, and you need a BN and the corresponding RC program account to do this.

• Other Tax Accounts: The BN is the base number for other tax accounts your corporation may need, such as:

  • GST/HST (Goods and Services Tax/Harmonized Sales Tax)

  • Payroll Deductions (for employees)

  • Import/Export

  • Charity Status (if applicable)

B. Legal Requirement for Incorporation

In Canada, a BN is automatically assigned to a business when it incorporates, either federally or in most provinces that have a partnership agreement with the Canada Revenue Agency.

C. Government Interaction and Transactions

Your corporation's BN is its unique ID for interacting with various levels of government, including:

• Provincial Programs: Many provinces use the federal BN for their own business-related programs and services.

• Accessing Online Services: You need your BN to access the CRA's My Business Account online portal to manage your corporation's tax affairs.

• Business Operations: It is often required for other business activities, such as applying for government grants, permits, or contracts.

So if you are looking to incorporate a new corporation or deal with the corporate legalities impacting your company, contact us at 403-400-4092 [Alberta], 905-616-8864 [Ontario] or via email at Chris@NeufeldLegal.com.