{"id":4901,"date":"2021-08-04T14:57:24","date_gmt":"2021-08-04T19:57:24","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/smallbusiness\/incorporation-and-legal-structures\/what-is-a-business-entity.html"},"modified":"2025-10-20T00:24:00","modified_gmt":"2025-10-20T05:24:00","slug":"what-is-a-business-entity","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/smallbusiness\/incorporation-and-legal-structures\/what-is-a-business-entity.html","title":{"rendered":"What Is a Business Entity?"},"content":{"rendered":"\n
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What Is a Business Entity?<\/h1>\n\n
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\n By Jade Yeban, Esq.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last reviewed\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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A business entity<\/span> is a legal structure that determines business taxation and limited <\/span>liability protection<\/span>. The most common types of <\/span>business entities<\/span> include sole proprietorships<\/span>, partnerships, corporations, and limited liability companies<\/span> (LLCs).<\/p>\n\n <\/div>\n\n\n\n

Starting a new business is exciting. Entrepreneurs have a lot to think about, from getting a business loan<\/span> to opening a new bank account<\/span>. One important decision is choosing which business entity<\/span> is right for your business. A business entity<\/span> is an organization that one or more people form to conduct business<\/span>. The way you organize and operate a business entity<\/span> is crucial. It determines how you tax it and who pays its debts and obligations.<\/p>\n

This article briefly overviews different forms of <\/span>business<\/span> entity<\/span> options available to small <\/span>business<\/span> owners<\/span>.<\/p>\n

Need help with business formation? Our trusted partner LegalZoom makes it easy\u2014packages start at $0 + state filing fees.<\/a><\/span><\/b><\/p>\n

Key Takeaways<\/h2>\n