Legal Entity

A legal entity is an organization recognized by law as having its own rights and responsibilities, separate from the individuals who own or manage it. This means it can enter into contracts, own property, sue, and be sued independently. Common examples include corporations, LLCs, and government agencies. This separation provides legal protection for the owners from the entity’s liabilities and legal obligations. Essentially, a legal entity allows an organization to operate as a distinct "person" in the eyes of the law, facilitating business and legal transactions with clarity and protection.