The business number (BN) is a numbering system that simplifies and streamlines the way businesses deal with the federal government and is used to remit the source deductions of your employees, including federal income tax and EI contributions. It is based on the idea of one business, one number. Each business requires one BN for its legal entity. A legal entity is defined as a sole proprietor, partnership, corporation, trust or other organization. The BN has a total account number of 15 characters, 9 to identify the business and two letters and four digits to identify each account a business may have. A corporation BN will begin with 11, a sole proprietorship BN will begin with 22, and a partnership BN will begin with 33. Refer to www.cra.gc.ca/bro (1-800-959-5525) for detailed information to register your business with the Canada Revenue Agency. Remittances are made on a monthly basis. Instructions to remit source deductions can also be found at this website.
Posted in: General Business Information