When you’re starting a business in British Columbia, there are many responsibilities to manage, and one of the first things entrepreneurs should understand is how a business number in British Columbia works. Whether you’re operating a small online store, launching a corporation, or offering freelance services, having the correct business registration is essential for staying compliant and running your business smoothly.
A lot of entrepreneurs in BC often confuse a business number with the GST account or a business license. These registrations are linked, but all have a different purpose. Knowing how they operate will help you save time, money, and legal headaches in the future.
This guide will cover what a business number is, who can apply for one, what you need to apply for one, common application mistakes, and more.
What Is a Business Number in British Columbia?
The Canada Revenue Agency (CRA) issues a Business Number in BC that is a unique 9-digit number. It is your business’s identification number for federal tax purposes.
This number is used when dealing with government programs such as the following:
- GST/HST accounts
- Payroll deductions
- Import/export accounts
- Corporate income tax
Consider the Canadian business number as a central account number that integrates your business with the CRA.
For example, if your business hires staff, collects GST, or imports goods into Canada, for instance, you’re likely going to require a CRA corporation number.
A business number is different from a provincial registration or a business license that BC businesses may require from local municipalities.
Who Needs a Business Number in British Columbia?
Not every business needs a BN immediately, but many businesses operating in BC will eventually require one.
You might require a corporation number in British Columbia if you:
- Operate a corporation
- Hire employees
- Register for GST/HST
- Import or export goods
- Open certain business bank accounts
- Apply for government business programs
1. Sole Proprietors: A sole proprietorship BC business may not always need a business number right away. However, if the business earns enough revenue to require GST registration or hires employees, a BN becomes necessary.
2. Partnerships: If you’re in a business partnership, it typically needs to be registered, particularly for tax and payroll duties.
3. Corporations: Corporations usually need a CRA corporation number, as they have their own legal and tax responsibilities.
4. Online Businesses: Even online businesses operating from home may need a business number depending on their income and activities.
How to Get a Business Number in British Columbia?
Typically, the process of obtaining a corporation number in BC is very simple once you have the necessary information ready.
Step 1: Select Your Company Structure
Determine your structure before submitting your application:
- Sole proprietorship
- Partnership
- Corporation
Business structure impacts liability, tax, and registration requirements.
Step 2: Register Your Business Name
If you are running a business under a custom name, then you might have to register your business in BC with a provincial registry.
For example:
- “John Smith Consulting” may not need separate name registration.
- “Pacific Coast Marketing” likely requires registration.
Step 3: Apply for a CRA Business Number
You can apply for a CRA business number through the following:
- Online CRA services
- By phone
- By mail
- Through a registration service provider
When approved, you receive your 9-digit BN.
Step 4: Add CRA Program Accounts
After getting your business number, you may need additional program accounts, such as:
- GST/HST account
- Payroll account
- Import/export account
These accounts are linked to your main BN.
Step 5: Obtain Local Licenses if Required
Based on your city and industry, you may also require a business license from the BC municipalities.
What is the Difference Between a Business Number vs a GST Number in BC?
One of the most commonly asked questions by new entrepreneurs is this one.
Although related, a business number is not a GST number, although related.
1. Business Number (BN): The BN is your main identification number issued by the CRA.
Example:
- 123456789
2. GST Number BC: A GST account is an additional tax account connected to your BN.
Example:
- 123456789 RT0001
The “RT” extension identifies the GST account.
Key Difference
| Business Number | GST Number |
|---|---|
| Identifies your business | Used for GST/HST tax collection |
| Issued by CRA | Added under the BN |
| Needed for various CRA programs | Needed if collecting GST/HST |
If your business earns over the small supplier threshold, you generally must register for GST/HST.
Many people searching for GST number BC are actually looking for information about CRA program accounts linked to the BN.
How Much Does it Cost to Register Your Business Number in BC?
The process of obtaining a business number in British Columbia varies in cost depending on the type of business you are establishing and the registrations required. The registration of a CRA business number is typically free, but there are a number of other costs for business owners to take into account.
Main costs include:
- Name approval fees
- BC business registration fees
- Incorporation costs
- Business license BC fees
- Annual filing fees
- Accounting or legal services
For example, a sole proprietorship BC registration is usually less expensive than incorporating a corporation because a corporation needs extra legal and administrative requirements.
A lot of entrepreneurs also select professional registration services to make the process easier and avoid mistakes in paperwork during British Columbia business registration.
How Long Does It Take to Get a BN in British Columbia?
The timeline will vary according to the application.
- Online Applications: Online CRA applications are often the fastest. In many cases, you can receive your BN immediately after approval.
- Phone Applications: Phone registrations can also be relatively quick if all information is ready.
- Mail Applications: Mail applications usually take longer because of processing times.
- Provincial Registrations: If you first need to register a business in British Columbia, the provincial registration process may add additional time.
To avoid delays:
- Double-check your documents
- Use accurate legal names
- Select the right business structure
Which Documents Are Required to Apply for a Business Number?
The process of obtaining a business number in British Columbia can be much quicker and easier when documents are prepared in advance. If you are applying for a CRA business number, you will typically have to submit some basic personal and company details.
The documents and information required are:
- Government-issued ID
- Social Insurance Number (SIN)
- Business name
- Business address
- Phone number and email address
- Business structure details
- Description of business activities
- Documents of incorporation (if any)
- Payroll information (if you are hiring employees)
If you are intending to register a corporation in British Columbia, you may also require incorporation documents, like your incorporation certificate or articles of incorporation.
If your business is a sole proprietorship BC or a partnership, the registration process will normally be easier but still requires accurate information to avoid delays or mistakes.
Common Mistakes to Avoid When Registering a BN
There are several common problems that business owners face when applying for a corporation number in BC. Such mistakes may result in a delay, penalty, or future tax problem.
Common Mistakes:
- Choosing the wrong business structure
- Confusing a BN with a business license BC requirement
- Entering incorrect business information
- Forgetting GST/HST registration
- Ignoring tax filing obligations
- Not keeping proper financial records
Whether you are a corporation or a sole proprietorship British Columbia, the details you provide for registration are significant to keeping you compliant with the Canada Revenue Agency.
Conclusion
Obtaining a Business Number in British Columbia is one of the initial key actions in establishing a legal and organized company. If you are a freelancer, corporation, or sole proprietorship BC business, knowing the registration process can help you avoid costly mistakes in the future.
A CRA business number can assist you with tax management, payroll, and government accounts and ensure that your corporation is compliant with federal regulations.
Looking to register a business in British Columbia and would like to have professional help in the process, Incpass.ca can help make business registration and incorporation, as well as compliance, more manageable. Their team can guide you through the paperwork so you can focus on growing your business with confidence.
FAQ’s
Is a business number mandatory in British Columbia?
Many businesses need a BN for tax, payroll, or GST reasons, but not all businesses need to have it immediately.
How long does BC business registration take?
It depends on the registration type and application method. Online applications are generally faster than mail submissions.
Can I use one business number for multiple CRA accounts?
Yes. Your BN can include different CRA program accounts such as GST, payroll, and import/export accounts.
