In the United States, an independent legal entity (SLE) refers to a type of legal entity with independent responsibility. Any company is configured as an SLE to legally separate it from the person or owner, such as a limited liability company or a corporation. Unlike a sole proprietorship, an LLC separates the owner from the business and protects him from personal liability. You can appoint other owners or hire staff to work in the business or operate it alone.
The term “independent legal entity” is a fundamental concept in law that underpins commercial law and legal liability. The internal constitution does not affect the legal survival of the company as an independent legal entity. Essentially, an SLE means that if someone takes legal action against your company, your personal finances will be separate and safe from legal action. In the United States, a separate legal entity (SLE) refers to a type of legal entity with independent responsibility.
Sometimes, in order to identify what a legal entity is, it's more important to know when it's definitely not a separate legal entity. The separate entity is essentially an accounting concept, while an independent legal entity is a legal concept that takes precedence over the accounting concept of the separate entity.