WHAT IS A BUSINESS ENTITY
A Business Entity is an organization that possesses a separate existence for tax purposes. Some types of Business Entities include Corporations and Foreign Corporations, Business Trusts, Limited Liability Companies (LLCs), and Limited Partnerships (LPs).
A Business Entity is separate and distinct from the people who finance it or work in it. This liability protection is the main reason why someone would set up a Business Entity. The level of liability protection varies with type of, and location of, the Business Entity.
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