Change of legal status

In general, a change of legal status or ownership type is due to either:

In most cases, you have to close your existing business number (BN) and Canada Revenue Agency (CRA) accounts and register for new ones.

Changing the number of owners of the business

In a partnership

Your legal status does not change if all of the following are true:

In a sole proprietorship

Your legal status must change if all of the following are true:

When the number of owners in a sole proprietorship changes, your business legal status changes in one of the following ways:

For these legal status changes, you have to call the CRA at 1-800-959-5525.

Changing whether the business is incorporated or not

When your business becomes incorporated

Your legal status can change in one of the following ways:

When you change your legal status to incorporate an existing business, you need to do the following:

Step 1

You must contact the appropriate incorporating authority and register a new corporation, even though you already have an existing BN.

If you are incorporating with Innovation, Science and Economic Development Canada or one of the provincial incorporating authorities listed on Canada Revenue Agency registration and other provincial or federal programs, the following will apply:

Step 2

Once your incorporating authority has provided you with your new incorporation information contact the CRA at 1-800-959-5525 to register a new BN. A new RC program account will automatically be associated to the new BN. During the same phone call, follow step 3.

Step 3

Once the new BN has been registered with the CRA, any program accounts that are associated to your old BN, such as GST/HST (RT) program account or payroll (RP) program account will not be automatically associated to the new BN.

When your business is no longer incorporated

Your legal status can change in one of the following ways:

For these legal status changes, you have to call the CRA at 1-800-959-5525.

Amalgamation

When two or more corporations amalgamate, you must call the appropriate incorporating authority. For more information, go to Corporation income tax program account.

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