What is a legal entity?
Q: What is a legal entity?
A: A legal entity is a legal structure that allows a group of natural persons to act as if they were a single person for certain purposes.
Q: What are the most common purposes of a legal entity?
A: The most common purposes of a legal entity are lawsuits, property ownership, and contracts.
Q: Are legal entities always different from the natural persons they consist of?
A: No, legal entities are not always something else than the natural persons of which they are composed, as in the case of a company or corporation.
Q: Can you give some examples of legal entities?
A: Some examples of legal entities include companies, corporations, partnerships, limited liability companies, and trusts.
Q: Why would a group of natural persons want to form a legal entity?
A: A group of natural persons may want to form a legal entity to protect themselves from personal liability, to obtain certain tax benefits, or to raise capital for a business venture.
Q: What is the advantage of a legal entity?
A: The advantage of a legal entity is that it provides a separate legal identity for the group of natural persons, shielding them from personal liability.
Q: What is the difference between a legal entity and a natural person?
A: The difference between a legal entity and a natural person is that a legal entity is a legal construct that can act as if it were a single person, whereas a natural person is an individual human being.
