After Incorporating in Canada: CRA Accounts and Fixes

I have a certificate of incorporation. Which CRA accounts do I already have?

A certificate shows that the corporation exists; it does not show that every CRA tax account is open. Federal incorporation and incorporation in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Ontario, Prince Edward Island or Saskatchewan automatically provide a business number (BN) and corporation income tax account (RC). Other provinces and territories require separate CRA registration for both. CRA: corporation income tax account.

An account number combines the nine-digit BN, a two-letter program code and a four-digit reference number. A BN or RC does not open an RT or RP account. Check when GST/HST becomes collectible before invoicing: that duty can begin before CRA finishes the RT application. CRA: program account numbers; CRA: when to register and charge.

Is the BN on my certificate the same as my GST/HST or provincial number?

The CRA BN is the corporation's nine-digit identifier, while a GST/HST number is that BN plus an RT account code and reference number. A provincial registry number can be different: the CRA specifically says an Ontario Business Identification Number or Québec Enterprise Number cannot be used in place of a BN when adding a CRA account. CRA: program accounts; CRA: numbers to gather.

If the BN is missing from your incorporation papers, check the incorporating registry's message or portal, CRA letters and saved registration confirmations. You may also search the relevant public business registry. If you still cannot find it, ask the CRA to locate the existing BN; do not create another BN for the same corporation. CRA: find an existing BN; CRA: one BN per entity.

I incorporated in a province. When must I register with the CRA separately?

If you incorporated in Newfoundland and Labrador, the Northwest Territories, Nunavut, Québec or Yukon, register the corporation for a BN and RC with the CRA. If you incorporated in one of the provinces listed above, first find the BN and RC already assigned; add only the other CRA accounts you need. CRA: when you receive a BN.

For a separate registration, have the legal name, incorporation certificate number, incorporation date and jurisdiction ready. CRA's resident-business route uses Business Registration Online through a CRA account. If you cannot create an account because you have not filed Canadian taxes, use Form RC1 by mail. Businesses physically located in Québec register and file GST/HST with Revenu Québec; QST and source-deduction registration may also apply. CRA: RC information; CRA: resident registration; Revenu Québec: registration.

RC is a federal account. A corporation with an Alberta or Québec establishment may also have a separate provincial corporation tax return: AT1 or CO-17, respectively. See Filing your corporate return for that step. Alberta: corporate tax; Revenu Québec: CO-17.

Before my first invoice, do I need an RT account?

For ordinary taxable goods or services, a corporation that is not required to register and has not registered voluntarily can invoice without GST/HST. Certain taxable real property supplies may still attract tax without registration. Do not use the owner's personal RT for a corporate sale. If registration is required, charge GST/HST from the applicable effective date, even if the application is incomplete; an invoice without the tax does not remove that liability. CRA: voluntary registration exception; CRA: when to register and charge; CRA: tax not charged when required; CRA: corporation is the registrant.

For most businesses, the small-supplier limit is $30,000, but exceptions and the timing of the test matter. Taxi and commercial ride-sharing operators must register from their first taxable ride even below the limit. A small supplier making taxable supplies can generally register voluntarily; a business making only exempt supplies generally cannot. See When to register for GST/HST for the full test. CRA: registration rules; CRA: taxi registration.

How do I add GST/HST or payroll to the corporation's BN?

Use the corporation's existing BN when registering an RT or RP account. In CRA's resident-business process, sign in to your CRA account and use Business Registration Online to add the needed program account; if that route is unavailable, CRA gives a Form RC1 mail route. Save the resulting account number and confirmation. CRA excludes businesses with only non-resident owners from this online route; directors with a temporary SIN starting with 9 must mail Form RC1 to register GST/HST. CRA: resident registration.

The CRA asks for these details when registering the relevant accounts. Check the RT effective date when registering. When mandatory registration follows the end of small-supplier status, apply within 29 days after the first taxable supply made once you are no longer a small supplier; charge tax from the required date even while the application is pending. Confirm the RP number before the first payroll remittance is due. Businesses physically located in Québec must use Revenu Québec for GST/HST registration and filing, and should check its QST and source-deduction routes. CRA: registration information; Excise Tax Act: registration application; CRA: when to register and charge; Revenu Québec: registration.

Can the corporation keep my old sole-proprietor BN or RT account?

No. A sole proprietorship and a corporation are different legal entities. Incorporating an existing business gives the corporation a new BN and RC; old RT or RP accounts do not move to it. For that conversion, CRA directs you to call to register any needed RT or RP on the new BN, and to register the BN during the same call if incorporation did not provide one. Close the old BN and accounts if the sole proprietorship ceased; keep them for any separate activity that continues. The former proprietor remains personally responsible for tax from their own business. CRA: change of legal status.

If business assets also move, the former proprietor and corporation can jointly make a Form GST44 election for a qualifying business transfer; it can remove GST/HST on most transferred assets, but never moves the RT account. If registered, the corporation files it by the due date of its first GST/HST return covering tax that would otherwise arise on the transfer. Excise Tax Act: section 167; CRA: Form GST44.

For a Québec transfer, both parties instead complete Form FP-2044-V with Revenu Québec for GST/HST and QST; a registered corporation files it by the due date of its first return for the period when tax would otherwise become payable on the transfer. An eligible asset transfer may also defer income tax if the proprietor receives corporate shares and both parties elect on Form T2057 by the earliest income tax return filing deadline of either party for the transfer year. For Québec income tax, they also file Form TP-518-V by the later of the earliest relevant income tax return filing deadline and the last day of the second month after the later party's tax year-end. Revenu Québec: FP-2044-V; Québec sales tax law: section 75.1; Income Tax Act: section 85; CRA: T2057; Revenu Québec: TP-518-V.

Keep the dates and records for sales made by each entity. Do not put corporate sales on the sole proprietor's GST/HST return simply because the business name or customers stayed the same. The CRA treats the incorporated body as the person that registers for GST/HST. CRA: required GST/HST registration.

My GST/HST registration or CRA account link fails validation. What should I check?

If Business Registration Online rejects an RT application, check the corporation's BN and legal details against CRA records; use Form RC1 by mail if online registration cannot be completed. If a GST/HST Registry search fails, enter only the first nine RT digits, the supplier name given to CRA and the invoice date; contact CRA if it still fails. The Registry checks a supplier's status, not an RT application. CRA: resident registration; CRA: GST/HST Registry.

For My Business Account access, check whether the director or officer appears correctly in the incorporating registry and CRA records, and whether their SIN is linked to the corporation's BN. CRA says registry changes come first; depending on the registry and the information changed, supporting documents must then go to the CRA. If the BN or account cannot be found or the details still fail validation, contact the CRA with the certificate and account notices rather than registering a duplicate entity. CRA: corporate access and updates; CRA: find an existing BN.

My corporation invoiced using my personal RT number. What must I correct?

Do not put the owner's personal RT on another corporate invoice. Confirm whether the corporation has its own RT; if it needs one, register it under the corporation's BN and check the effective date. For past invoices, list the dates, supplier names, tax charged and payments. CRA: change of legal status; CRA: registration effective date.

Ask the CRA how to reconcile GST/HST already reported under the personal account before treating it as paid by the corporation. Give customers corrected documents showing the actual supplier and its valid RT number where required; their input tax credit may depend on the supplier being registered on the transaction date. If past invoices or returns are involved, gather both BN/RT notices, invoices, credits, returns and payment records for business formation help. CRA: GST/HST Registry.

If the corporation transfers property or sale proceeds to a non-arm's-length owner for less than fair value, that owner can be jointly liable up to the value shortfall for corporate income tax from the transfer year or earlier, or GST/HST from the transfer period or earlier. Anti-avoidance rules can reach later tax. CRA may assess that transfer liability at any time under Income Tax Act section 160 or Excise Tax Act section 325. Income Tax Act: section 160; Excise Tax Act: section 325.

Do I need an RP account if I pay myself salary, dividends or nothing?

The corporation needs a payroll account when it acts as an employer or pays other amounts subject to the payroll rules, including salary to an owner who is an employee. Register before the first remittance due date, normally the 15th day of the month after withholding begins unless CRA assigns another frequency. An unregistered employer still has to calculate and remit deductions on time. See Running payroll for the calculation and remittance steps. CRA: payroll registration.

Directors serving when payment was due can be personally liable for unremitted net GST/HST under Excise Tax Act section 323 and missed payroll withholding or remittance under Income Tax Act section 227.1, plus interest and penalties. CRA must meet statutory failed-collection or insolvency conditions; reasonable preventive diligence is a defence. GST/HST assessment must occur within two years after a director leaves; payroll recovery action must begin within the same period. Excise Tax Act: section 323; Income Tax Act: section 227.1.

Québec directors can also be liable under Tax Administration Act sections 24.0.1 and 24.0.2 for unremitted QST, Québec source deductions and employer contributions. For resident wages never withheld, Québec income tax liability is generally limited to penalties and interest; QPP and QPIP contributions have different rules. Revenu Québec cannot assess a director more than two years after they last cease to serve; reasonable diligence or lack of knowledge can be a defence. Revenu Québec: liability for payment; Québec Tax Administration Act.

How to choose between salary and dividends is a separate decision. See Salary or dividends. Québec payroll may also require Revenu Québec registration. CRA: payroll registration.

How do I get My Business Account access and authorize my accountant?

A director or officer using My Business Account needs a CRA account, the corporation's BN and a SIN linked to that BN. In the CRA account, add a Business Account, choose an existing BN and follow the validation steps. If the SIN is not linked and you have not filed a GST/HST or T2 return, CRA permits online linkage only within 28 days after BN registration. Otherwise, CRA accepts a signed request through an authorized representative or by mail or fax. CRA: corporate access.

If a director or officer can use My Business Account, they can authorize the accountant there using a RepID, GroupID or business number. If none can access it, a director, officer or delegated authority can sign Form AUT-01 for offline access and send it within six months of signing. Non-resident directors and officers without a SIN generally use that route and should ensure CRA has their current residency and contact details. Confirm the intended access level and account scope. See Incorporating as a newcomer or non-resident for their broader setup. CRA: corporate authorization; CRA: Form AUT-01.

Do I need a BN before opening a corporation bank account?

CRA's BN rules do not set a bank-account opening requirement. Ask the financial institution which incorporation, identity and tax-account documents it requires for a corporation. Bring the certificate and the BN/RC confirmation if available; do not assume a bank account proves RT or RP registration. CRA: purpose of the BN; CRA: finding the BN.

For which separate account and records to set up before the first sale, see Doing your own books or hiring a bookkeeper.

Example

Illustrative amounts are in Canadian dollars. A new Ontario corporation plans a C$2,000 first invoice for ordinary services and no wages. Its incorporation gives it a BN and RC, but it has not opened RT or RP. If it is still a small supplier and has not registered voluntarily, it can issue that invoice without GST/HST under the general rule. The owner must not put a personal RT number on it.

Before a later C$3,000 invoice, the corporation chooses to register voluntarily for RT with an effective date after its first invoice. It uses the corporation's RT for taxable invoices from that date. When it later plans a C$1,000 salary payment, it adds RP and prepares the payroll deductions. The sales figures alone do not decide whether another corporation must register: associated businesses and special rules can change the GST/HST test.

Different for you?

• You are unsure when GST/HST becomes mandatory or already crossed the limit: see When to register for GST/HST.
• You sell in a province with its own sales tax: see Provincial sales tax.
• You pay wages or have missed payroll remittances: see Running payroll.
• You need to decide how to pay yourself: see Salary or dividends.
• A director is a newcomer or non-resident, or has no SIN: see Incorporating as a newcomer or non-resident.
• The corporation's first income tax return is due: see Filing your corporate return.
• The corporation billed under a personal RT, or two entities' returns are mixed: gather incorporation papers, both BN and account notices, invoice dates, returns and payments, then seek business formation help before changing filed returns.