Separate legal entity
In the United States, a separate legal entity (SLE) refers to a type of legal entity with detached accountability. Any company is set up as an SLE to legally separate it from the individual or owner, such as a limited liability company or a corporation.[1][2]
If a business is a separate legal entity, it means it has some of the same rights in law as a person. It is, for example, able to enter contracts, sue and be sued, and own property. A sole trader or partnership does not have a separate legal entity.
References
[edit]- ^ "Separate Legal Entity". Retrieved 19 December 2009.
- ^ "A Two-Edged Sword: Salomon and the Separate Legal Entity Doctrine". Retrieved 19 December 2009.
See also
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