A business entity is a company set up legally that is separate and distinct from the owners who set it up. Under the law it’s considered a separate person. Entrepreneurs set up business entities to operate more efficiently, combine the talents of one or more owners, and protect themselves.
An example of a business that is not a business entity would be a sole proprietorship or a “doing business as (dba).” Sole proprietors and dbas are the simplest types of businesses but these keep all of the responsibilities and “liabilities” (debts and risks) directly with the owner.
LLCs, corporations, and partnerships are all examples of business entities. There are dozens of different variations on business entities. PUSHTOSTART focuses on the two most widely used and most valuable entities, LLCs and corporations.