Separate legal entity

In the United States, a separate legal entity or 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. Sole traders and partnerships are not separate legal entities from the owners.

References
  1. ***Separate Legal Entity, retrieved 19 December 2009
  2. A Two-Edged Sword: Salomon and the Separate Legal Entity Doctrine, retrieved 19 December 2009

See also
  • Types of business entity


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