Do You Need an EIN or BN? US & Canada Business Numbers Explained

If you’re starting or expanding a business in North America, one question always comes up — Do I need an EIN or a BN?
It sounds simple, but these two business identifiers unlock everything from tax filings to payroll and banking.

Here is the simplest explanation concerning these things, their relevance, and the methods of being compliant regardless of being in the U.S., Canada, or both.

What is an EIN (US) vs BN / CRA Business Number (Canada)
When & Why You Need One (for Payroll, Tax, Banking)
Differences in Registration Process (US IRS vs CRA)
Implications for Cross-Border Businesses
Keeping Business Numbers in Good Standing
Common Pitfalls & Mistakes
Bookkeeping, Payroll & Tax Compliance Considerations
How Orbit Accountants Supports EIN/BN Setup & Compliance

What is an EIN (US) vs BN / CRA business number (Canada)

Basic definition comes first.

The IRS in the U.S. issues an EIN (Employer Identification Number). It has a nine-digit number and announces to the government your tax identity, it basically works as a Social Security Number for your company.

The CRA (Canada Revenue Agency) gives a Business Number (BN) in Canada. It’s also nine digits, and it connects your business to everything from GST/HST to payroll and import/export accounts.

So, both numbers identify your business to the government, just in different countries.

When & why you need one (for payroll, tax, banking)

Most businesses can’t get far without these numbers.
You’ll need them for things like:

Filing taxes with the IRS or CRA.
Running payroll and paying employees legally.
Opening a business bank account: banks usually won’t proceed without one.
Working with clients or platforms that need your tax ID for reporting.
Importing or exporting goods; in Canada, your BN links to customs and trade accounts.

In short: if you plan to pay people, collect taxes, or move money, you’ll need an EIN or BN.

Differences in registration process (US IRS vs CRA)

The process is fairly easy on both sides but the systems are separate.

In the U.S.:
You apply directly through the IRS EIN Assistant.
You’ll provide your business type, responsible person, and mailing address.
Non-U.S. residents can still apply by sending Form SS-4 via fax or mail.

In Canada:
You register for a BN using the CRA Business Registration Online portal.
You’ll need your business name, structure, and contact information.

If you operate on both sides of the border, you might need both numbers. That’s where many businesses trip up or forget one entirely.

Implications for cross-border businesses

Doing business across borders? Then both numbers might come into play.

A Canadian company selling or hiring in the U.S. usually needs an EIN for tax reporting and withholding.
A U.S. company expanding into Canada might need a BN for payroll or GST/HST registration.

Ignoring one system can cause messy tax issues, unnecessary penalties, or even delayed payments. The good news? Once you’re set up properly, managing both isn’t hard.

Keeping business numbers in good standing

Getting your EIN or BN is just the first step. Keeping it active and compliant matters just as much.

Make sure to:

File returns and remittances on time.
Notify the IRS or CRA if your ownership, address, or structure changes.
Keep accounts active, letting them go dormant can trigger audits or closures.
Maintain clean books and payroll records.

Think of your EIN or BN as your business identity. Protect it like you would your own.

Common pitfalls & mistakes

Here are a few things we see all the time:

Registering for the wrong tax account.
Using a personal SSN or SIN for business transactions.
Forgetting to register payroll or GST/HST accounts under your BN.
Skipping filings or remittances.
Assuming a U.S. number works in Canada, it doesn’t.

Most of these mistakes are easy to avoid with the right setup and guidance.

Bookkeeping, payroll & tax compliance considerations

Once your business numbers are in place, you’ll need solid systems behind them.
That indicates:

Correctly documenting all sources of income and expenses.
Processing the salaries of the employees, including the respective deductions and contributions.
Properly submitting the sales tax or GST/HST returns.
Aligning the year-end reports with CRA or IRS statements.

Having a good set of books ensures that your business is compliant with the regulations and gives you the comfort of not worrying about tax matters during the tax season.

How Orbit Accountants supports EIN/BN setup & compliance

Orbit Accountants assists the entrepreneurs and businesses in the process of growth, showing them the right way through the U.S. and Canadian taxation systems. You can refer to Orbit Accountants Tax Compliance Services in the US and Orbit Accountants Tax Compliance Services in Canada.

Whether you are a freelancer, a budding company or a brand that is extending its reach, Orbit Accountants can help you with the EIN and BN compliance process, enabling you to focus on growth rather than paperwork.

Are you ready to make a move?

Provide your information to Orbit Accountants now, and they will carry out your EIN or BN registration with no inconveniences.

Author Profile

Adam Regan: Deputy Editor

Features and account management. 7 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com