entity

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 ]

Keywords

• llcs-corporations-partnerships

wex

• COMMERCE
• commercial activities
• business law
• business organizations
• corporations
• THE LEGAL PROCESS
• class actions
• courts
• civil procedure
• business sectors
• legal education and practice
• wex definitions