Canada Revenue Agency Business Number: Ultimate Business ID

The Business Number (BN) is a crucial identifier for Canadian businesses, playing a vital role in tax compliance, government interactions, and financial transactions.

What is a Business Number?

A Business Number is a unique 9-digit identifier assigned by the Canada Revenue Agency (CRA) to businesses and organizations operating in Canada. It's used to streamline tax and administrative processes.

Importance of a Business Number

Having a BN is essential for:

• Taxation: Filing tax returns, making tax payments, and tracking business activities for tax purposes.
• Government Interactions: Interacting with federal, provincial, and municipal governments, reducing the need for redundant information.
• Financial Transactions: Opening business bank accounts, submitting loan applications, or conducting other financial operations.
• Regulatory Compliance: Meeting regulatory requirements, such as filing annual returns and maintaining corporate records.

Types of Accounts Associated with a Business Number

A BN can have multiple program accounts associated with it, including:

• GST/HST Account: Managing the collection and remittance of Goods and Services Tax/Harmonized Sales Tax.
• Payroll Deductions Account: Remitting payroll taxes, including income tax, Canada Pension Plan, and Employment Insurance.
• Import/Export Account: Complying with customs regulations and managing duties and taxes.
• Corporate Income Tax Account: Filing and paying corporate taxes.

Obtaining a Business Number

You can obtain a BN through:

• Online Registration: Using the CRA's Business Registration Online (BRO) service.
• Phone Registration: Calling the CRA's business inquiries line.
• Mail or Fax Registration: Completing Form RC1 and sending it to your tax services office.

Conclusion

In conclusion, a Business Number is a vital identifier for Canadian businesses, simplifying tax compliance, government interactions, and financial transactions. By understanding its role and importance, businesses can ensure they meet regulatory requirements and operate efficiently. If you're starting or managing a business in Canada, obtaining a Business Number is a crucial step to take.

How to cope when you’re on double duty: Starting a business while working full time

When you decide to start a business, you usually aren’t sitting in the lap of luxury with unlimited free time, resources, and countless windows of opportunity. Instead, most new business owners are confronted with their business ideas amidst the stereotypical “9 to 5”.  Further, some start-up ideas do not materialize beyond the conception phase due to the intimidating challenge of juggling a new business while working full time. Despite this disposition, entrepreneurs have been and continue to nurture successful businesses in this way. So, what’s the big secret? The truth is really no secret at all. Managing a start-up while working a full time job does not have to make you a victim of entrepreneurial defeat. Our small guide below is designed to help you thrive and succeed at this balancing act.

Time Management

When you dedicate an average of eight hours per day to a full time job, it is inevitable that time is going to be one of your greatest competitors for success. Once you recognize and accept this fact, you will be well on your way. Part of effective time management is planning. Assess your current schedule and determine how much of your time is “wasted”.  For example, if you watch three hours of television after work, consider at least two out of those three hours disposable. Further, evaluate how you spend your weekends. The weekends consist of two full “non-work” days, how do you use them? 

Once you have mapped out your current weekly schedule, create a new one inserting small-business/start-up time in all your disposable time slots. Creating a schedule and planning how you will use your time will help you track your progress and give you a big picture on how you are allocating your time in favour of growing a lucrative business. You can also incorporate lists to ensure that each day you are completing a specific task. If you are fortunate enough to work at a company that has liberal policies on working other jobs simultaneously, take advantage of that time without jeopardizing your present employment. Alternatively, if your job opposes integration of this kind, capitalize on your lunch breaks. This does not mean that you should skip lunch however, but take time to eat and time to work. If you manage your time correctly you will still be able to do the more relaxing activities you enjoy.

Licensing and Registration

Obtain all the necessary license and registration at the start of your business. It is particularly important to engage in this process at the beginning stages of your start-up because in some jurisdictions it can be time-consuming. Additionally, you may need sufficient time to obtain necessary documents and tackle unforeseeable circumstances that can or may hinder your project. The last thing you need during this process is a setback.  That is not to say they will not happen, but you have a great chance of minimizing them by acting sooner rather than later.

Money Management

Most start-ups and small businesses are individually funded (out-of-pocket). Make a budget and monitor the distribution of funds. Determine what percentage, if any, of your full-time salary can be redirected into your business.  Further, ensure that your business expenses do not compromise your personal expenses. If you are really pressed for funding you may have to make smart but effective lifestyle changes. For example, bring a lunch and limit the amount of coffee purchases you make in a day or week. Go to the movies once a month and substitute your frequent social outings for a night in. Reassign those funds to your business. These changes are not about ridding your life of its social pride, but rather, cutting out what it beyond necessary objectively.

Don’t think too big, too quickly

Starting a business can be exciting, but do not allow that excitement to cloud your judgment.  Take your time and understand your business. Do not waste time worrying about office space and spending frivolously on products and services that are not fundamental to your start-up. Take meetings at coffee shops if you have to. Schedule phone and Skype calls where necessary. If you become too caught up in materializing your ideal business at the beginning of the process, you run the risk of losing money and, worse, losing your business.

Finally, enjoy the process. It is easy to get caught up in what is sometimes a dense world of business. Do not lose sight of yourself and your vision. Take regular breaks just like any other job and laugh a little. You will make mistakes, but do not fret on them for too long. Cry if you have to and get back in position remembering that failure is a natural progression of success.

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Video Series - BOSHnewmedia Communications

BOSHnewmedia Communications - Trademark and Business Referral

Dawn Boshcoff had good foresight to change her career path 10 years ago by studying New Media Journalism and subsequently founding BOSHnewmedia Communications, which provides creative and innovative messages for brands to better position themselves online. Now, with the rise of social media, search engine optimization and other growing online marketing outlets, BOSHnewmedia has positioned itself to be a strong contender in the competitive marketing communications industry.

When Dawn was looking to register a trademark she quickly came across CorporationCentre.ca online and, after careful research, she applied for her trademark through the CorporationCentre.ca filing services. After finding the process to be easy and worry-free, with great customer service, Dawn continues to refer her clients to CorporationCentre.ca for all their business needs. As the saying goes, the best marketing is always word of mouth. Thanks Dawn!

To find out more about BOSHnewmedia Communications, visit her website at www. boshnewmedia.com.

CIPO Now Accepting Sound Trademarks

A ground breaking federal Court of Canada decision has allowed for the trademarking of sounds. CIPO (Canadian Intellectual Property Office) has been resistant to sound trademarks and, up until this point, only allowed words or designs to be trademarked, even though many other countries have already allowed for sound to receive the same protection.

The decision has come from a long and drawn out court case between Metro-Goldwyn-Mayer (MGM) Studios and CIPO. In 1992 MGM applied to trademark the sound of the lion’s roar that viewers hear before any MGM movie. CIPO, after years of delays, eventually denied the trademark application for MGM’s lion roar and MGM appealed the decision.  The case made its way at the federal Court of Canada where MGM won. Because of the ruling, CIPO announced that it will now be accepting sound trademark applications.

Sound trademarks can be considered a kind of “aural brand” in that the sound you hear can instantly trigger the thought of a brand. Besides the MGM lion’s roar, other sounds that have been trademarked by brands in the US include the NBC chimes, the Intel Pentium chord sequence, the 20^th Century Fox music and the Harlem Globetrotter’s theme music. However, in Canada the sound trademark does not extend to longer sounds like songs, which would instead be protected by copyright.

To submit a sound mark in Canada, your application must include:

a.      a statement that the application is for a sound mark registration;

b.     a visual depiction that graphically represents the sound;

c.      a description of the sound; and

d.     an electronic recording of the sound in MP3 or WAV format or on CD or DVD (5 MB max.)

The recording should not contain any looping or repetition of the sound. Types of media other than listed above, hyperlinks, or streaming locations will not be accepted.  New applications for sound marks can only be submitted through a paper application, and not by CIPO's online filing system.

For more information on sound marks visit the CIPO website.

Video Series - PatsyPie Trademark

PatsyPie - Trademark Application Filing Services

PatsyPie is a bakery specializing in gluten-free products such as cookies, brownies and biscotti. Started as a home business in St. Laurent, Quebec by Pat Libling, PatsyPie has grown tremendously, with products now being sold across Canada.

PatsyPie was started because Pat herself is celiac. Over the years Pat has tried practically every gluten-free product on the market but found that none of the products measured up to the quality and taste of regular baked goods. So Pat set out to perfect her gluten-free recipes and once she did, she was in business!

For Pat, finding a creative and original name for her company was easy - PatsyPie is a nickname her husband gave her years ago. As PatsyPie started to become a successful business, Pat knew she needed to protect her company name and logo, so she turned to CorporationCentre.ca to register her Trademark.

Check out Pat's story in the video above and for more information on PatsyPie gluten-free baked goods, please visit the website at www.patsypie.com!

Shareholders Determine Executive Compensation

It's commonly known as say-on-pay policy. In the United Kingdom and the Netherlands, say-on-pay is mandatory. Now, as Canadians desire to be viewed as doing the right thing, say-on-pay will become policy at 13 Canadian corporations beginning next year.

Say-on-pay, although sounding like the name of a children's game, is by no means a game. It is a system whereby the shareholders of a corporation get to vote on executive compensation packages. Although the policy is merely advisory, it is by no means to be taken lightly. The board of directors is not obligated to follow the express directives of the shareholders. However, the vote by the shareholders - whether to increase top executive compensation, decrease executive pay, or leave it as is – can send a clear message to the board members.

In countries that regularly implement a say-on-pay policy, top company executives invest a good deal of effort to court shareholder votes. While they certainly have a vested interest in the outcome, the important factor is the open lines of communication between shareholders and corporation management. Regular discussion between the investors and operations is extremely important. The goal behind encouraging shareholders' input is to break down the barrier that currently exists and allow management to understand how their investors view the company's performance.

In an effort to encourage widespread acceptance of the say-on-pay policy, the Canadian Coalition for Good Governance is working on a model policy for boards to implement, including the wording of the actual resolution put to shareholders. As shareholders are likely to vote based on overall feelings and ignore the specifics, the Coalition hopes that the wording of their resolution will help shareholders focus their thoughts.

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To Buy the Competitor or Not to Buy

Although the state of the economy is still uncertain, this should not affect whether a company should pursue acquisition of a competitor, if that is its intent. Rather, one should be somewhat more prudent and disciplined in how one evaluates the potential purchase.

During these recent difficult times, the markets have naturally focused their attention on companies in distress. This should not translate into a belief that the entire business sector is in ruins. However, as the competition may be in dire straits due to the present financial crisis should not be a reason to abandon ideas of purchasing that company. Careful assessment of the competitor is crucial. Seek to understand why that company is losing money. Will your investment merely save a struggling enterprise that was on its way to closure anyway or are there other factors at play that will make this a worthwhile purchase?

It is important to dissect the company and understand how it works. Were there management problems? Did the company mismanage its relationships with its customers and suppliers? Were the employees mistreated and, therefore, did they not perform well? Is the machinery sub-standard, thus affecting the product? Examining the company with a fine-toothed comb will allow you to make an effective decision as to whether this company can merge with yours. Similarly, it is important to do a proper evaluation of your own company. Are you in a position to absorb this company? Do you have the management capabilities for this merge? Will your staff cope with the additional production and sales? Will you need capital to overhaul machinery? Similarly, examine your goals. Perhaps you are only interested in expanding your customer base. In that case, go directly to the competitor's customers, rather than affecting a buyout.

Research is your best business ally.

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Cyber-Shopping Anyone?

In a country that is so highly attached to Internet access and the latest high-tech gadgetry, Canadians are slow to adopt the trend of cyber-shopping – shopping online. Online sales have certainly been growing at a steady pace - a 61% rise in three years – but they still lag behind online sales in the United States.

Analysts attribute Canadian reluctance to become cyber-shoppers to several factors. High shipping costs in Canada have caused a large number of shoppers to abandon their online purchase before completing the transaction. Additionally, when it comes to security, Canadians are far more sensitive than most other nations around the world. Simply put, many Canadians have an abiding fear of credit card fraud and are skeptical about revealing their credit card details online.

On the other hand, the rise of specialty brands online is winning over Canadian reluctance. The allure of securing hard-to-get brands or one-of-a-kind items has been a boon for many online retailers.

Some of the nation's larger retail outlets use their websites primarily for marketing and rely upon their sites to attract buyers to their stores. This has allowed a market to open up for smaller retailers whose "primary store" is located on the Internet.

Consumers still expect top service wherever they buy. For online stores, this translates into speedy and affordable delivery as well as reliable customer service. Moreover, online stores must market their sites in a variety of ways if they are to be noticed.

The variables of the economy affect the online stores as much as traditional shopping outlets. When consumers are in a spending mood, they are more likely to shop for items online that may be frivolous or unnecessary. However, when belt tightening begins, online retailers have to rapidly shift their focus to marketing items that are more affordable.

With annual sales in excess of $15 billion, and growing, cyber-sales seem to have carved out a niche with the Canadian consumer.

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Knowing the Value of Your Business

All too often, business owners will plan their retirement and estate based on their own personal valuation of their business. After all, could there be anyone more qualified than the owner to truly know how much the business is worth? The answer, surprisingly, is a resounding yes. According to experts, a business owner's self appraisal and evaluation of his company will generally be well off the mark on the high side. Business owners will allow their emotional and personal attachments to the business override their objective opinions, thus producing end results that may be quite inaccurate.

The best course of action is to retain a professional valuator. The valuator – generally an accountant – will work the numbers and forecast accurately. Objectivity is essential. The owner will look at where he has been and what he has accomplished. The valuator can take all the facts and figures and see where the business will be. For example, a valuator may conclude that the business is the life's work of an individual and the owner is the company. Remove him from the picture and the value of the company will plummet. This is often the case with small businesses. On the other hand, a larger business with multiple shareholders may have developed a succession plan. In this instance, the valuator will clearly see that a working plan is in order to allow the business to continue, even after the owner is no longer in the picture.

It is important to note, though, that business valuation is an art, not a science. Two valuators can arrive at different conclusions for the same business. The reason is that the valuator must make future predictions based on the present numbers. There is always a possible margin of error.

Be that as it may, a professional business valuation is an excellent tool to help business owners assess their company's worth with no emotional strings attached.

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Ontario or Canadian Incorporation - Where to incorporate?

We often get this question - I am based in Ontario and want to incorporate my business but don’t know if I should incorporate a Federal or Ontario corporation – where should I incorporate?

Deciding where to incorporate involves many factors including evaluating corporate and tax laws. A competent lawyer/accountant should be consulted to evaluate your specific circumstances. However, for most small corporations the following factors make Federal (Canada) corporations more attractive - read below. You can also check out this video about incorporations for more information.

Federal corporations have lower government incorporation fees than Ontario corporations ($200 versus $360). Also, although Federal corporations must register extra-provincially with the Ontario government, there is no government fee for this registration.

Federal corporations have the most stringent criteria in granting the right to use a corporate name. Ontario corporations (like most other provinces) offer very little protection of use, and will grant almost any name provided it is not identical. Moreover, if there is any protection, it is limited to that province, unlike federal corporations which afford Canada wide protection.

Federal corporations require that 25% of its directors be resident Canadians, while Ontario corporations require 51% be resident Canadians. This may be advantageous if you have foreigners involved in your business.

Delays for both are approximately the same where Certificates of Incorporation can generally be obtained within 2 working days or less.

However, Federal corporations must file annual reports at a cost of $20 per year whereas Ontario corporations’ annual reports are free.

You can check out our pre-incorporation checklist for Ontario incorporations. For a more detailed answer check out this link about where to incorporate in Canada.