Company Incorporation
What is a Business Entity?
A business entity is an organization formed for the purpose of conducting commercial activities. It is legally recognized and can function in various forms depending on how it is structured. The choice of structure affects several aspects of the business, such as its tax obligations, legal liabilities, and operational flexibility. A business entity exists separately from its owners or partners in most cases, meaning it can own assets, enter into contracts, and be held accountable under the law. The specific type of entity chosen impacts the way profits are distributed, how decisions are made, and the degree of personal liability for the individuals involved.