Business Number (BN) & BC Incorporation Number

What is a Business Number (BN)?

Purpose: The Business Number is a unique nine-digit number assigned by the Canada Revenue Agency (CRA). This number is essential for identifying your business in all federal tax and business accounts. Here's what the BN is used for:

• GST/HST Registration: Ensures your business is registered for Goods and Services Tax/Harmonized Sales Tax.

• Import/Export Accounts: Necessary for businesses involved in international trade.

• Payroll Accounts: Used for managing employee payroll taxes.

• Corporate Income Tax: Identifies your business for filing federal corporate taxes.

Scope: The BN is applicable across all federal-level business and tax affairs. It is your primary identifier when interacting with the CRA and other federal agencies.

What is an Incorporation Number?

Purpose: The Incorporation Number is a unique identifier assigned by the provincial corporate registry when you register your company in BC. This number is crucial for managing your business's provincial legal and corporate requirements. Here are some of its uses:

• Corporate Registration: Identifies your company in the BC corporate registry.

• Annual Reports: Required for filing your company's annual reports with the provincial authorities.

• Document Filings: Used for various legal and administrative document submissions.

• Legal Compliance: Ensures your company complies with provincial laws and regulations.

Scope: The Incorporation Number is only applicable within BC. It is used for all matters related to provincial corporate registration and legal compliance.

Why Both Numbers Matter

Both the Business Number (BN) and the Incorporation Number play distinct roles in the administration of your business. While the BN covers federal tax and business activities, the Incorporation Number is specific to your company's operations within BC. Each number ensures your business meets the necessary regulatory requirements at both the federal and provincial levels.

By understanding the purpose and scope of these identifiers, you can better manage your business's legal and administrative responsibilities, ensuring smooth and compliant operations across all jurisdictions.

Do Provincially Incorporated Companies Get a Business Number (BN)?

If you're thinking about incorporating your business directly within a province, such as British Columbia (BC), you might wonder if you still need a Business Number (BN). The short answer is: Yes, you might still receive a BN depending on your business activities. Let’s break it down.

Provincial Incorporation

When you incorporate your company within a province like BC, you'll receive a provincial incorporation number. This unique identifier is used for all your provincial-level corporate and legal matters. It's essential for:

• Filing annual reports

• Managing document filings

• Ensuring legal compliance within the province

Business Number (BN)

Even if your business is provincially incorporated, you will still receive a Business Number (BN) if your business activities require federal tax-related interactions. Here are some scenarios where a BN is necessary:

• GST/HST Registration: If your business needs to register for Goods and Services Tax/Harmonized Sales Tax.

• Payroll Accounts: If you have employees and need to set up payroll accounts.

• Import/Export: If your business is involved in importing or exporting goods.

• Corporate Income Tax: If you need to file corporate income tax returns with the Canada Revenue Agency (CRA).

In these cases, the CRA will assign a BN to your business. This number is used to identify your business for federal tax purposes and to manage various tax accounts.

Understanding the roles of these identifiers helps you stay compliant with both provincial and federal regulations, making sure your business meets all necessary requirements. For more detailed information or specific advice tailored to your business, consider consulting with a professional advisor or exploring additional resources.

Understanding the Difference Between Your Federal Business Number (BN) and Incorporation Number

When you run a business that is federally incorporated and also registered for example in British Columbia (BC), you will encounter two important identifiers: the Business Number (BN) and the Incorporation Number. Here's a breakdown of what each number is used for and why they are important.