A legal entity is any company or organization that has the capacity to assume obligations and carry out activities that entail full legal responsibility, both to itself and to third parties. This includes filing taxes, entering into contracts as a seller or supplier, and being able to sue or be sued in a court of law. A limited liability company (LLC) is a type of legal business entity that is treated as an entity separate from its owners, with its own legal existence. The finances of the LLC are distinct from the personal finances of the owners.
This type of business entity is governed by state law and has met all the requirements necessary to conduct business transactions. When it comes to legal status, it refers to the legal identity by which a person, entity, association or company is recognized, with sufficient capacity to assume obligations and carry out activities that entail full legal responsibility, with respect to itself and to third parties. There are several different forms of legal business entities, all of which have their own advantages and disadvantages. For example, type S public limited companies generally must exclude shareholders or corporate companies, although certain trusts and successions may be eligible.
If you need help creating a legal business entity, you can post your legal need on the UpCounsel marketplace. This platform connects you with experienced attorneys who can provide advice and assistance in setting up your business.