First let’s compare a social insurance number (s.i.n.) for one individual and a business number for one company.
A social insurance number for an individual is registered to that person and follows them throughout their life time. There are no two individuals with the same social insurance number although there may be many individuals with the same first and last names such as John Smith. In order to know which John Smith is calling a government department or filing a report a number system is used (s.i.n.) to identify the individual and thigh the information filed for that individual.
So too is a business number assigned to a business much the same as a s.i.n. is to an individual. There are no two companies who are registered with the same RC business number. It is much easier and more efficient for the government to pull up your file with your BN than trying to find Diddly Doodle Exporting Importing Crab Fish Wholesale and Supply Ltd.
Who needs a BN? All employers who pay wages, commissions or bonuses to one or more employees will require a BN. A BN is required for reporting of incomes, deductions, taxes etc, etc.
Associations may have the notion that a BN is not required because they are a non-profit organization. Not so if the association has one or more employees for whom they must report income to the government.
For registering with Revenue Canada for a BN call 1-800-959-5525
Their website address is http://www.cra-arc.gc.ca/tx/bsnss/tpcs/bn-ne/ndn/pyrll/menu-eng.html
