Setting up CRA accounts for a new business

The business number and program accounts are different things

The business number is a nine-digit identifier for your business or legal entity. A program account is what you open under that number to report a specific activity to the CRA. The program account number adds a two-letter identifier for the type of account and a four-digit reference number. A GST/HST account, for example, shows up as the nine digits followed by RT and 0001.

A business or legal entity is limited to a single business number. If one already exists, new program accounts are added to it and the CRA will not issue a second. That is why it is worth checking whether a number already exists before you register, particularly if you incorporated, registered with a province earlier or started a registration online that timed out.

Which accounts a new business may need

Four accounts are common. GST/HST (RT) is for businesses that need to register and collect the tax. Payroll deductions (RP) is for employers and other payers of amounts related to employment. Corporation income tax (RC) is for incorporated businesses. Import and export (RM) is for importers, exporters and customs brokers acting for a client. The CRA lists others, including information returns (RZ), but most small businesses start with the first three.

The RM account works a little differently. The CRA notes that, as of October 21, 2024, the import and export program account is administered by the Canada Border Services Agency. If you plan to import or export, treat it as a separate task and confirm the current registration steps with the CBSA before your first shipment.

When you actually need each account

You need a business number if you incorporate, or if you need a GST/HST, payroll or other program account. An unincorporated business that needs none of those does not need a business number. A sole proprietor can still report business income on a personal return without one.

GST/HST registration is required once you are no longer a small supplier and make taxable supplies. The usual threshold is $30,000 in taxable revenue, measured over four consecutive calendar quarters or in a single quarter. Registering earlier is voluntary if you make taxable supplies. The detailed tests, the effective date and exceptions are covered in the GST/HST registration guide linked below, so this article does not repeat them.

A payroll account is needed before your first remittance due date. That date is the 15th of the month after the month in which you first withheld deductions from an employee’s pay. If you hire someone on March 11 and the first pay is on the 25th, the first remittance is due April 15. Hiring first and registering later does not remove the obligation: you still calculate and remit by the due date or risk a penalty.

A corporation income tax account is attached to the corporation. Many corporations receive it automatically as part of incorporating, which is the next point.

Incorporating may create the business number for you

Incorporating federally with Corporations Canada gives you a business number and a corporation income tax (RC) account, so you do not register separately for the RC account. Incorporating in Ontario does the same, as it does in several other provinces. Registering a business (without incorporating) in Ontario also produces a business number, but the RC account applies only when you incorporate. Some provinces and territories, including Quebec, do not issue one, and you register with the CRA yourself.

Incorporation does not create a GST/HST or payroll account. Those are still added afterwards, using the number you already have. A common mistake is assuming that a new corporation is automatically set up to charge sales tax or run payroll. Another is using the Ontario Business Identification Number where a nine-digit business number is requested. The CRA says that number cannot be used.

Registering with Business Registration Online

For a resident business, the CRA describes Business Registration Online as the fastest route. You sign in to your CRA account, choose to add a business account, and select the option to register a business. You can register for the business number together with GST/HST (excluding Quebec), payroll, corporation income tax, information returns and some other accounts in one session.

Practical limits matter. You need a CRA account first, and you cannot create one if you have not filed your taxes or have enhanced protection on your account. The session times out after 10 minutes of inactivity and you cannot save partway through. The business number is not mailed to you, so save or print it when it appears. If the system will not accept your postal code, or you cannot finish online, the fallback is Form RC1 sent to your tax centre. That form covers GST/HST, payroll, corporation income tax, registered charity and information returns, but not every account.

Gather your information first: owners’ names and Social Insurance Numbers, legal and operating names, addresses, a description of the main activity, and any incorporation details. For GST/HST you may need your estimated taxable sales, effective date, fiscal year-end and reporting period. For payroll you may need the number of employees, expected salaries, the first pay date and pay frequency. Quebec businesses register for GST/HST with Revenu Québec.

My Business Account after you register

My Business Account is the online portal where owners, partners, directors and officers deal with the CRA about their program accounts. To use it, your Social Insurance Number must be linked to the business number and the number added to your CRA account. If you are not already linked and have never filed a GST/HST or T2 return, you can generally link only when the number was registered within the last 28 days, so do not leave this step for months.

Most correspondence for a business is delivered online in My Business Account by default, so sign up for email notifications. Otherwise a notice may sit unread. Only owners, partners or directors whose name and Social Insurance Number are on file with the CRA can make changes or add representatives, so check that an incoming partner or director is recorded.

Authorizing a representative

A bookkeeper, accountant or payroll provider needs your authorization to see or change your accounts. The fastest route is My Business Account: under the profile section you add an authorized representative. A representative with a RepID can also submit a request through Represent a Client, which you then confirm in My Business Account. A paper form, AUT-01, gives offline access only, such as by phone or mail, not online access.

You choose a level and a scope. Level 1 is view only, level 2 is view and update, and level 3 is delegated authority, available only to a representative with a RepID. The scope can be the entire business number, specific programs such as all payroll accounts, or one program account. Give the narrowest access that lets the person do the job, and cancel it when the engagement ends.

A short setup sequence and what to bring

Check whether a business number already exists. Decide your structure. Incorporate if that is the plan. Register for the other accounts when their triggers apply, and set up My Business Account. Record each account number, filing frequency and due date in one place so that the GST/HST, payroll and corporate tax calendars are visible together.

Bring to an accountant your incorporation documents, expected sales and hiring plans, and any numbers you already hold. Sora can help with registration questions, account setup and ongoing filings, but the right accounts depend on your facts.