Three Essential Steps After Incorporation: Registration Is Just the Beginning

Many new entrepreneurs breathe a sigh of relief once their company registration is complete, thinking, “Finally, it’s done.” However, from a tax and compliance perspective, incorporation is only the starting point of your business journey. What truly determines your company’s long-term stability are the next few steps you take.

1. Open a Dedicated Business Bank Account

You might think, “Can I just use my personal account for now?”The answer is: it’s strongly discouraged.

Mixing personal and business funds not only creates accounting confusion but can also cause problems during tax filing.The Canada Revenue Agency (CRA) requires companies to clearly separate income and expenses.If your business is ever audited, any mixed transactions may be disqualified as business expenses.

Opening a separate business account helps you:

• Maintain clear financial records

• Strengthen business credibility

• Simplify applications for loans or grants

Pro tip: Major banks such as RBC, TD, and Scotiabank often offer first-year free business accounts for newly incorporated companies.

2. Apply for a CRA Business Number (BN) and Sub-Accounts

After incorporation, you’ll receive a 9-digit Business Number (BN) — essentially your company’s tax ID. Each business account under this BN is identified by a two-letter suffix, representing a specific tax or operational category:

Code	Account Type	Purpose
RC	Corporate Income Tax	For filing corporate income tax
RT	GST/HST Account	For collecting and remitting sales tax
RP	Payroll Account	For employee payroll deductions
RM	Import/Export Account	For import/export operations

Many entrepreneurs forget to apply for or activate these accounts, leading to issues when invoicing, filing returns, or remitting HST. If you’re unsure which ones you need right away, start with RC (Corporate Tax) and RT (HST/GST) — you can add more later as your business grows.

3. Set Up Basic Accounting and Tax Record Systems

From your company’s first month, it’s essential to begin organizing your financial records — even a simple Excel spreadsheet works at the start.Make sure to record:

• Every source of business income

• Every business-related expense

• All invoices and receipts (paper or digital)

Doing this early helps you save time, stress, and money when tax season arrives — and significantly reduces the risk of CRA audits.

Conclusion

Incorporation is like laying the foundation of a building — strong groundwork ensures long-term stability .By taking care of these three essential steps early on, you’ll set your company up for compliance, efficiency, and future success. At Maple Tax Consulting, we help entrepreneurs navigate every stage of business growth — from registration to accounting and tax optimization.