When you start creating your Privacy Policy, the first set of questions will be used to determine what privacy laws apply to you, and thus what disclosures your Privacy Policy needs to contain. The question of "are you a for-profit entity" is one of the questions that will determine whether you need to comply with the California Consumer Privacy Act (CCPA) as this law applies to for-profit entities only.
For-profit entities aim to earn a profit through their operations. Common examples of for-profit entities include:
- Corporations;
- Limited Liabilities Companies;
- Partnerships;
- Limited Partnerships.
If you do business for a profit, then you should select "yes" as your answer to this question.
On the other hand, not-for-profits are organizations that do not aim to make a profit and are traditionally dedicated to furthering a particular social cause or advocating for a shared point of view. If you operate a not-for-profit such as a 501(c)(3) organization, you should answer "no" to this question.