Business Registration with the CRA — Montreal CPA Firm Near You: Complete Guide to Business Numbers (BN), GST/HST, Payroll, Import/Export, Corporate Tax Accounts, and CRA Compliance

Registering your business with the Canada Revenue Agency (CRA) is the first essential step in operating legally in Canada. Whether you are launching a sole proprietorship, incorporating a company, starting a consulting business, hiring employees, importing inventory, or selling online, you must understand how to obtain your Business Number (BN) and CRA program accounts. The CRA uses these identifiers to track your GST/HST reporting, payroll remittances, corporate filings, import/export activities, and all tax compliance obligations. Registering incorrectly or delaying registration exposes businesses to penalties, reassessments, frozen refunds, or GST/HST liabilities. This guide provides a complete, in-depth, 4-page overview of business registration requirements, enhanced with primary SEO keywords such as “business registration with CRA,” “Business Number BN,” “GST/HST registration,” “CRA payroll account,” and secondary keywords such as “register a business in Canada,” “My Business Account CRA,” “business tax compliance Montreal,” and “CRA program account setup.”

Business owners should be aware that the CRA is ending business registration by phone. Effective November 3, 2025, all new registrations must be completed using Business Registration Online (BRO) or through an authorized representative like Mackisen CPA. This change reinforces CRA’s shift toward digital compliance and automated oversight. Understanding how to navigate BRO, program accounts, business number structure, and CRA requirements is now more important than ever.

Legal and Regulatory Framework

Every Canadian business operates under a regulatory framework where the CRA assigns a unique Business Number (BN). The BN is a nine-digit identifier used to administer all CRA tax accounts. It is not the same as a Quebec NEQ, provincial registration number, or incorporation number, but it interacts with all of them. The BN framework allows the CRA to track business activity across program accounts such as GST/HST (RT), payroll deductions (RP), corporate income tax (RC), import/export (RM), and information returns (RZ). The structure of the BN is: 123456789 RT0001 where the first nine digits are your business identifier, “RT” indicates GST/HST, and “0001” is the account reference.

CRA requires a Business Number as soon as a business begins any commercial activity. This includes earning self-employment income, operating a corporation, hiring workers who require CPP/EI deductions, exceeding the $30,000 small-supplier threshold for GST/HST, issuing T4 or T4A slips, importing or exporting goods, or filing corporate income tax. The BN must be maintained, updated, and used consistently whenever dealing with CRA. Program accounts must be added depending on the type of business operations. CRA requires accurate information on business structure, ownership, address, fiscal year end, banking information, and program account activity.

CRA regulations also require businesses to maintain detailed books and records for at least six years, to respond to CRA compliance inquiries, to remit GST/HST collected from customers, and to deduct and remit payroll contributions. Failing to register or update program accounts can trigger enforcement: CRA may reassess GST/HST retroactively, require backdated payroll deductions, or freeze refunds until the business becomes compliant. This regulatory environment makes early registration, accurate program setup, and ongoing maintenance essential to business survival.

Key Court Decisions Affecting Business Registration

Canadian courts have established several foundational principles regarding business registration with CRA. These rulings guide how CRA enforces compliance:

Courts confirm that commercial activity, not corporate paperwork, triggers CRA obligations. A sole proprietor, online seller, consultant, or gig worker must register when commercial activity begins—even without formal incorporation.

Courts uphold that GST/HST obligations begin immediately once the $30,000 worldwide taxable revenue threshold is exceeded. CRA can retroactively assess GST/HST that should have been collected, even when the business owner was unaware.

Courts hold employers responsible for payroll classification. If CRA determines a worker is an employee and not a contractor, payroll deductions must be remitted retroactively. Failure to open a payroll account does not excuse non-compliance.

Courts rule that a personal services business (PSB) must be properly registered and faces higher corporate tax rules when a contractor behaves like an employee. Corporations cannot avoid CRA scrutiny by misclassifying themselves.

Courts emphasize that businesses must notify CRA of address changes, ownership changes, corporate dissolutions, and structural modifications. Ignoring CRA correspondence due to outdated addresses does not excuse penalties or assessments.

These rulings reinforce the need for proper registration, accurate information, and proactive compliance with CRA.

Why CRA Targets Business Registration

The CRA actively monitors unregistered or misregistered businesses using extensive data-matching tools. When a business operates without the proper BN or program accounts, CRA interprets this as a compliance risk. CRA’s systems detect business activity through T4A contractor slips, T5018 construction slips, GST/HST filing mismatches, credit card merchant statements, PayPal and e-commerce platform reporting, provincial registry data, bank transactions, import/export declarations, and even social media advertisements for business services.

CRA targets industries with high risk of unregistered activity, including construction, trucking, cleaning services, landscaping, restaurants, beauty salons, online influencers, Amazon sellers, gig-economy workers, consultants, fitness professionals, daycare providers, contractors, and self-employed service providers. CRA also targets businesses whose income on the T1 or T2 return indicates commercial activity but no BN or GST/HST account exists.

Businesses that fail to register for GST/HST upon exceeding $30,000 may face retroactive assessments for uncollected tax. Employers who pay employees without a payroll account face CPP/EI penalties. Corporations failing to update addresses risk missing audit notices and facing escalated enforcement. Business owners must take CRA registration seriously.

Mackisen Strategy

Mackisen CPA Montreal helps business owners navigate all CRA registration requirements with accuracy and confidence. We determine the appropriate business structure (sole proprietor, corporation, partnership), evaluate GST/HST registration needs, set up payroll accounts, and ensure correct fiscal year-end configuration. We register all program accounts through Business Registration Online (BRO) or Represent a Client. We retrieve or merge existing BNs, ensure GST/HST numbers match business activity, open payroll accounts for employer obligations, and set up import/export accounts for cross-border commerce.

Mackisen keeps CRA information updated, including business addresses, owners and directors, email contact, bank details for direct deposit, business activities, and fiscal year ends. We monitor compliance by reviewing CRA letters, correcting misapplied payments, setting up My Business Account properly, closing inactive accounts, and responding to CRA business-verification audits.

Our strategy protects business owners from penalties, interest, and GST/HST reassessments by ensuring proper registration from day one.

Real Client Experience

A self-employed consultant exceeded the GST/HST registration threshold without realizing. CRA reassessed past sales and demanded GST/HST owed. Mackisen filed a voluntary disclosure, registered the client properly, and reduced penalties.

A startup paid employees without a payroll account. CRA demanded CPP/EI back payments. Mackisen opened the payroll account, corrected filings, and implemented compliant payroll processes.

A non-resident Amazon FBA seller unknowingly triggered Canadian GST/HST obligations. Mackisen registered the BN, GST/HST account, and import/export account, enabling fully compliant operations.

A business owner with multiple trade names believed he needed multiple BNs. CRA detected duplicates. Mackisen consolidated the accounts and updated CRA information.

When You Need a Business Number (BN)

You need a BN when you begin commercial activity. This includes operating as a sole proprietor earning business income, incorporating a company, hiring employees, collecting GST/HST, exceeding the GST/HST small-supplier threshold, issuing T4/T4A information slips, importing or exporting goods, selling online through platforms like Amazon or Shopify, and running a corporation. Even part-time or side-business activities may require a BN. Many small businesses voluntarily register for GST/HST to claim input tax credits (ITCs) on business expenses.

Register for a BN and CRA Program Accounts

You can register for a BN and program accounts using Business Registration Online (BRO), Represent a Client through Mackisen, provincial registries, or corporate registrars. After November 3, 2025, CRA will no longer process BN registrations by phone. Program accounts that businesses typically add include GST/HST (RT), payroll deductions (RP), corporate income tax (RC), import/export (RM), and information returns (RZ). Each account serves different tax obligations. GST/HST registration is not automatic; businesses must explicitly add the RT account even if they already have a BN. Payroll accounts are required once employees are hired or when contractors are reclassified.

Ways to Find an Existing BN

To find your existing BN, you can log into CRA My Business Account, review CRA mail, check incorporation documents, search provincial business registries, or authorize Mackisen to retrieve the BN securely. Business owners often lose track of their BN due to old corporations, dissolved businesses, rebranding, or multiple trade names. Using the wrong BN or creating duplicates can cause compliance issues, misapplied payments, or filing errors. Mackisen helps recover and reconcile BN records.

Maintaining Your Business Information

You must keep your CRA business information up to date. This includes address changes, director changes, shareholder updates, fiscal year-end changes, closing or adding program accounts, business restructuring, and changes to commercial activity. Failing to update CRA can result in misdirected notices, late-filing penalties, frozen refunds, or compliance flags. CRA may assume a business is non-compliant if mail is returned. Mackisen ensures your CRA business profile remains accurate year-round.

Common Questions

Do sole proprietors need a BN? Yes, if they need GST/HST, payroll, import/export, or information return accounts.

Can one business have multiple BNs? No. One BN per entity, but multiple program accounts under it.

Is GST/HST registration automatic? No. You must explicitly add the GST/HST RT account.

What if I never registered but earned income? You must register retroactively and may face penalties.

Can Mackisen register my business for me? Yes. We handle full CRA registration and setup.

Why Mackisen

With over 35 years of combined CPA experience, Mackisen CPA Montreal ensures your business registration with the CRA is correct, compliant, and optimized for success. We help entrepreneurs, corporations, consultants, online sellers, and non-resident businesses register properly, avoid penalties, and maintain full CRA compliance. Whether you need GST/HST setup, payroll registration, or corporate tax configuration, Mackisen ensures your business starts strong and stays protected.

If you want expert help registering your business, opening CRA program accounts, or managing CRA compliance, Mackisen is your trusted partner for business success.