Getting a business tax ID: TIN, EIN, and BN applications simplified
Starting a business brings excitement—and paperwork. One document you absolutely cannot skip? Your business tax identification number. Whether you’re launching in the United States or Canada, this number becomes your company’s financial identity. Without it, you’ll hit roadblocks trying to open bank accounts, hire your first employee, or file taxes properly.
Here’s something that might shock you: January 2026 saw over 532,000 new business applications filed (a 7.2% jump from December), yet countless entrepreneurs skipped getting their proper tax ID. That single oversight creates problems that ripple for months—frozen bank accounts, payroll delays, and penalties from the IRS or CRA that could’ve been easily avoided.
This guide breaks down what a business tax ID actually is, why you probably need one, the key differences between American and Canadian systems, and the fastest ways to get yours online. Working with an experienced accounting and bookkeeping firm ensures you navigate this process correctly from the start, avoiding costly mistakes that slow your launch.
Understanding business tax IDs and why they’re essential
A Tax Identification Number (TIN) represents a unique identifier the government assigns your business for tracking taxes and financial obligations. Americans call it an Employer Identification Number (EIN), issued by the IRS. Canadians know it as a Business Number (BN) from the CRA. It functions like your personal Social Security Number, but specifically for your company.
Here’s why it matters:
- Banks almost always require it before opening business accounts—no exceptions.
- You absolutely need it when hiring employees or contractors to process payroll taxes correctly.
- Filing business tax returns, claiming deductions, and registering for sales taxes like Canadian GST/HST all require this number.
- Vendors, payment platforms (Stripe, PayPal, Square), and licensing authorities routinely request it.
- It establishes professional credibility and keeps you compliant with tax regulations.
Whether you’re just launching, transforming freelance work into a formal business, or establishing operations in America or Canada from abroad, obtain this number early. Without it, basic tasks like opening accounts or paying contractors can stall for weeks.
US EIN versus Canadian BN: Key differences for 2026
| Feature | US – EIN | Canada – BN | Main distinction |
| Issuing authority | IRS | CRA | Different tax agencies |
| Number format | 9 digits (XX-XXXXXXX) | 9 digits + program codes (RT0001) | BN adds suffixes |
| Primary function | Tax ID, banking, payroll | Central ID for GST/HST, payroll, imports | BN consolidates accounts |
| Processing time | Instant online | Instant online via BRO | Both fast |
| Application cost | Free | Free | Both free |
| Online application | IRS online tool | BRO via My Business Account | Different portals |
| Sales tax / GST/HST | State-level only | RT account required > $30,000 revenue | Canada has federal GST/HST |
| Non-resident access | Fax/mail/phone only | Non-resident form or mail RC1 | Limited online access |
Smart tip: The EIN serves as the primary business TIN in America. The BN performs a similar role in Canada but consolidates additional program accounts. Operating in both countries requires obtaining two separate numbers—no single number works internationally.
Getting your US business tax ID: EIN application steps
The EIN represents your primary business tax identification in America. The IRS provides it free of charge. Most eligible applicants receive it online within minutes.
Step 1: Confirm your eligibility
Your principal business location or legal residence must be within the US or its territories. The responsible party requires a valid SSN, ITIN, or existing EIN. International applicants without a US principal location cannot use the online system.
Step 2: Collect required documentation
Legal business name (letters, numbers, hyphens, ampersands only—no special symbols)
Business structure type (sole proprietorship, LLC, corporation, partnership)
Business address and operational start date
Responsible party’s name and SSN/ITIN/EIN
Anticipated employee count
Application reason (new business, banking needs, hiring)
Smart tip: Complete your entity formation first (like filing LLC paperwork with your state) to prevent complications.
Step 3: Complete online application (fastest method)
Visit the official IRS website and locate “Apply for an EIN online” within the small business section. The online tool operates:
- Monday–Friday: 6:00 a.m. – 1:00 a.m. ET (next day)
- Saturday: 6:00 a.m. – 9:00 p.m. ET
- Sunday: 6:00 p.m. – 12:00 a.m. ET
Complete the form in one session—saving isn’t possible. The system times out after 15 minutes of inactivity. Upon approval, your EIN displays immediately on screen.
Smart tip: Download or print your confirmation letter (CP 575) immediately. This serves as your official documentation.
Step 4: Alternative application methods
When the online tool isn’t accessible, the IRS accepts applications via fax, mail, or phone:
- Fax completed Form SS-4 to 855-641-6935 (approximately 4 business days)
- Mail Form SS-4 to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999 (approximately 4 weeks)
- International applicants: Phone 267-941-1099 Monday–Friday, 6:00 a.m.–11:00 p.m. ET
Smart tip: Only one EIN per responsible party daily. Use exclusively official IRS websites; the process never costs money.
Obtaining your Canadian business tax ID: BN application steps
A business TIN in Canada is called a Business Number (BN). The CRA issues it without charge. Most eligible applicants receive it online quickly through Business Registration Online (BRO). Phone registration ended November 3, 2025.
Step 1: Determine if you need a BN
You require a Business Number in these common scenarios:
- Incorporating a business entity
- Hiring employees and managing payroll
- Collecting GST/HST (mandatory once annual revenue exceeds $30,000)
- Importing or exporting merchandise
- Participating in other CRA programs
For online BRO registration, Canadian residents generally need a valid SIN. Non-residents should use the CRA non-resident online form or submit paper forms by mail.
Note: Sole proprietors without employees and revenue under $30,000 can typically use their SIN. Many still obtain a BN for professional appearance. Professional shopify bookkeeping services help Shopify store owners manage their BN registration and ongoing compliance efficiently.
Step 2: Gather required information
- Legal business name and structure type
- Business address (physical location, city, province, postal code)
- Owner, director, or partner details (names, SINs when applicable, roles)
- Start date or incorporation date
- Estimated annual revenue
- Required CRA program accounts (RT for GST/HST, RP for payroll, RM for import/export)
Complete your entity formation first, ensuring the name and details match exactly.
Step 3: Apply online using BRO
Navigate to the official CRA website and search for Business Registration Online (BRO). When ready:
- Sign in or establish a CRA My Business Account using a Sign-In Partner or CRA user ID.
- From the Welcome screen, select +Add account → Choose Business Account → Select Business Registration Online.
- Review the disclaimer and agree to proceed.
- Complete the sections for a new BN and any required programs.
- Answer each question carefully, review your information, and submit.
When everything validates, CRA approves instantly. Your 9-digit BN appears directly on screen. Save or print the confirmation page immediately.
Smart tip: Your session expires after 30 minutes of inactivity. The entire process is free and secure.
Step 4: Alternative methods
When online BRO isn’t accessible, CRA accepts applications through mail:
- Mail completed Form RC1 to your regional tax centre (find addresses on canada.ca). Processing requires weeks.
- Non-residents: Use the specific online non-resident registration form or mail Form RC1 to the appropriate Non-Resident Tax Centre.
Canadian BN versus GST number: Understanding the distinction
People frequently confuse the Business Number and GST number. Here’s the straightforward explanation:
Your Business Number (BN) is the primary 9-digit identifier CRA assigns your business. You receive one BN per business.
The GST number isn’t a separate number. It’s simply your BN with an additional component: typically RT0001 at the end.
The “RT” component indicates it’s the GST/HST program account attached to your BN.
Example: When your BN is 123456789, your GST/HST number becomes 123456789RT0001.
Practical applications of your business tax ID
- Tax filing and payments: Include your BN on every CRA return (T2 for corporations or GST/HST filings). Use it when submitting taxes or remittances.
- Banking: Establish a business bank account. Nearly every Canadian financial institution requires your BN.
- Payroll and employees: Utilize your BN with the RP account when hiring staff for source tax deductions and T4 slip distribution.
- GST/HST: Report and remit GST/HST using your BN’s RT account once annual revenue surpasses $30,000.
- Import/export: Manage customs and duties using your BN’s RM account when importing or exporting goods.
Smart tip: Display your BN on invoices, receipts, and contracts. When your business details change, notify CRA immediately.
Conclusion and professional support
You need a business tax identification number to operate legally and efficiently. Obtain an EIN in America or BN in Canada today. This step enables tax filing, business bank account opening, employee hiring, and IRS or CRA penalty avoidance.
SAL Accounting specializes in helping businesses navigate tax identification number applications and ongoing compliance. Their team understands the specific challenges entrepreneurs face when establishing businesses in Canada, the United States, or both countries simultaneously.
They provide comprehensive services including business structure consultation, tax ID application assistance, cross-border tax planning, accounting for ecommerce businesses and ongoing compliance support ensuring you obtain the correct identification numbers and use them properly.
Contact them today for a FREE consultation and discover how we can help your business start strong with a solid compliance foundation.
- Website: salaccounting.ca
- Number: (416) 848-8470
- Email: [email protected]
- Toronto’s Location: 330 Bay St. Unit 1401, Toronto, ON M5J 0B6
- Mississauga’s Location: 55 Village Centre Pl, Suit 734, Mississauga, ON L4Z 1V9, Canada