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What is a business entity?

At a basic level, business entities establish the business as a legal entity that can have bank accounts, enter into contracts, and conduct business without putting everything in your own name.

Why is business entity structure important?

While the business entity structure is not the only determinant in these processes ' location, stakeholders and industry all play key roles as well ' it is the most important one.

What are the different types of business entities?

The most common business entity types are sole proprietorships, partnerships, limited liability companies, corporations and cooperatives. Here’s more about each type of legal structure. A sole proprietorship is the simplest business entity. When you set up a sole proprietorship, one person is responsible for all a company’s profits and debts.

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