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An entity refers to a person or organization possessing separate and distinct legal rights, such as an individual, partnership, or corporation.  An entity can, among other things, own property, engage in business, enter into contracts, pay taxes, sue and be sued. An entity is capable of operating legally, suing and making decisions through agents, e.g. a corporation, a state, or an association.  

A legal entity corresponds to the notion of a legal person. A legal entity holds rights, and each entity has a legal status.

[Last updated in February of 2022 by the Wex Definitions Team]