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Table of Contents

1. 🧾 1. Decision Process for CRA Registration (GST/HST & BN)
2. 💰 2. When You Must Register for GST/HST
3. 💡 3. Voluntary GST/HST Registration
4. 📊 4. When to Register (If You’re Unsure)
5. 🧾 5. CRA Business Number & Tax Accounts
6. 🔢 6. Reference Identifier (0001, 0002, etc.)
7. 🧾 7. Advice on Registering & Maintaining CRA Accounts
8. 📝 8. Applying for BN (RC1 Form Overview)
9. 🏢 9. Corporation Tax Account (RC Account)
10. 💰 10. GST/HST Registration Process (RC1 Section)
11. 👩‍💼 11. Payroll (RP) Account
12. 🧾 12. Other CRA Accounts & Certification
13. 🦺 13. WSIB / WCB Registration
14. 🏛 14. Provincial Sales Tax (PST)

🧾 1. Decision Process for CRA Registration (GST/HST & BN)

Starting a business doesn’t always mean immediate CRA registration.

🔑 Key Points:

• A Business Number (BN) is a 9-digit ID for CRA tax accounts
• Not the same as provincial business registration
• Sole proprietors don’t always need a BN

✅ You likely DON’T need a BN if:

• No employees
• Revenue under $30,000
• No GST/HST required

🏢 Corporations:

• Always require a BN
• Must file separate tax returns

📊 Quick Comparison

Feature	Sole Proprietor	Corporation
Separate legal entity	❌	✔
CRA registration required	Sometimes	Always
Tax filing	Personal (T1)	Corporate (T2)

📌 Trigger events for BN:

• Hiring employees
• Exceeding $30,000 revenue
• Import/export activity

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💰 2. When You Must Register for GST/HST

🧠 The Small Supplier Rule:

• Under $30,000 → No registration required
• Over $30,000 → Registration mandatory

⚠️ Based on revenue (NOT profit)

🚫 Critical Rule:

• If you charge GST/HST → You MUST be registered
• If not registered → You MUST NOT charge it

📊 Threshold Summary

Revenue	Requirement
≤ $30,000	Optional
> $30,000	Mandatory

📌 Registration must occur within 29 days of exceeding threshold

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💡 3. Voluntary GST/HST Registration

Even below $30K, you can register.

👍 Benefits:

• Claim Input Tax Credits (ITCs)
• Recover tax on expenses
• Look more professional

👎 Downsides:

• Must file returns
• Extra bookkeeping
• Cash flow management needed

🧾 Simple Formula:

GST Collected – ITCs = Net Tax to CRA

📌 Best for:

• Businesses with high startup costs
• B2B services

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📊 4. When to Register (If You’re Unsure)

You don’t need to predict revenue — just track it.

🧠 Key Rules:

• Register after crossing $30K, not before
• Applies to future sales only (not retroactive)
• Measured over 4 consecutive quarters

📅 Tip:

Consider registering early (~$25K–$28K) to avoid surprises.

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🧾 5. CRA Business Number & Tax Accounts

The BN is the foundation of all CRA accounts.

🔢 Structure:

123456789 RT0001

Part	Meaning
123456789	Business Number
RT	Program (GST/HST)
0001	Account identifier

📦 Common Program Codes:

Code	Purpose
RC	Corporate tax
RT	GST/HST
RP	Payroll
RM	Import/export
RZ	Information returns
RR	Charity

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🔢 6. Reference Identifier (0001, 0002, etc.)

🧠 What it means:

• Identifies multiple accounts under one BN

🟦 Most small businesses:

• Only use 0001

🏢 Used when:

• Multiple locations
• Separate divisions
• Multiple business activities

📌 Optional — not required for small businesses

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🧾 7. Advice on Registering & Maintaining CRA Accounts

⚠️ Golden Rule:

👉 Only open accounts you need

❌ Why?

• CRA expects filings once opened
• Can lead to penalties or notices

🧠 Best Practices:

• Track revenue regularly
• Open accounts gradually
• Monitor CRA communications

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📝 8. Applying for BN (RC1 Form Overview)

The RC1 Form is used to:

• Get a BN
• Open CRA accounts

📌 Key Sections:

• Business structure
• Owner information
• Business activity
• Program accounts selection

🟨 Only complete sections relevant to your business

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🏢 9. Corporation Tax Account (RC Account)

📌 Only for corporations

Used for:

• Filing T2 returns
• Paying corporate tax

🧾 Required Info:

• Incorporation number
• Date of incorporation
• Jurisdiction (federal/provincial)

📎 Supporting documents required

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💰 10. GST/HST Registration Process (RC1 Section)

🔑 Must register if:

• Revenue exceeds $30,000

⚠️ Special cases (always register):

• Ride-sharing (Uber, Lyft)
• Taxi services

📊 Other considerations:

• Exempt supplies (e.g., healthcare)
• Export sales (often zero-rated)

📅 Choose:

• Effective date
• Filing frequency (annual, quarterly, monthly)

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👩‍💼 11. Payroll (RP) Account

📌 Required when:

• Hiring employees
• Paying salary (including yourself via corporation)

💰 Covers:

• Income tax deductions
• CPP
• EI

🧾 Responsibilities:

• Withhold from wages
• Remit to CRA
• Issue T4 slips

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🧾 12. Other CRA Accounts & Certification

📦 Additional accounts:

• RM → Import/export
• RZ → Information returns
• RR → Charity

📌 Final Step:

• Certify RC1 form
• Confirm accuracy

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🦺 13. WSIB / WCB Registration

🧠 What it is:

Workplace insurance for employees

📌 Required if:

• You hire workers (varies by province)

💰 Covers:

• Workplace injuries
• Compensation claims

⚠️ Mandatory in many industries

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🏛 14. Provincial Sales Tax (PST)

📊 Depends on province:

Province	Tax Type
Ontario	HST
BC	GST + PST
Saskatchewan	GST + PST

📌 You must:

• Register provincially if PST applies
• Charge and remit PST separately

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🚀 Final Takeaways

• Not all businesses need immediate CRA registration
• $30,000 revenue threshold is critical
• Only open accounts when required
• GST/HST rules are one of the most important areas for compliance
• Understanding BN structure is foundational for tax professionals