When onboarding with Stripe merchants in Canada have three options. They can onboard as an Individual/sole proprietorship, Company or Non-profit. Details on these three options are below.
An Individual or sole proprietorship is an unincorporated business that is owned by one individual. The owner of a sole proprietorship has sole responsibility for making decisions, receives all the profits, claims all losses, and does not have separate legal status from the business.
If you are an individual or sole proprietor you should select “individual or sole proprietorship / Particulier ou entreprise” as the “Type of business” during onboarding.
Merchants onboarding as a “Company” have two options: Corporation or Partnership.
A Corporation is a separate legal entity. It can enter into contracts and own property in its own name, separately and distinctly from its owners. When forming a corporation, the owners transfer money, property, or services to the corporation in exchange for shares.
If you are a Corporation you should select “Company/Entreprise” as the “Type of business” and “Corporation/Société” as the “Business structure”
A Partnership is an association or relationship between two or more individuals, corporations, trusts, or partnerships that join together to carry on a trade or business. Like a sole proprietorship, a partnership is easy to form.
If you are a Partnership you should select “Company/Entreprise” as the “Type of business” and “Partnership/Société de personnes ” as the “Business structure”
Merchants onboarding as a “Non-Profit” have two options: Registered Charity or Non-profit organization.
A Registered charity refers to a charitable organization, public foundation, or private foundation registered with the Canada Revenue Agency (CRA). A registered charity is issued a Registration Number once approved. It is exempt from paying income tax, and can issue tax receipts for donations it receives.
If you are a Registered charity you should select “Non-profit/Non lucratif” as the “Type of business” and “Registered charity/Organisme de bienfaisance enregistré” as the “Business structure” during onboarding. Learn more on how Stripe will be verifying registered charities here.
Non-profit organizations are associations, clubs, or societies that are not charities and are organized and operated exclusively for social welfare, civic improvement, pleasure, recreation, or any other purpose except profit.
If you are a Non-profit organizations you should select “Non-profit/Non lucratif” as the “Type of business” and “Non-profit organizations/organization à but non lucratif” as your “Business structure”