A business entity is the way a business or organization is structured. An organization with a business entity can be as small as one person.

What is a business entity? A business entity is an organizational structure that determines the way the government taxes a business and how it assumes liability. Often, a person or group of people creates a business entity to manage the risks that an individual assumes while running a company.

In the world of business and finance, an Entity is an individual, company, partnership, association, club, cooperative that has a legal and separately identifiable existence.

An entity is an organization created by one or more individuals to carry out the functions of a business, and that maintains a separate legal existence for tax purposes. It can be created at the local or state level. Entities refer to the structure of the business rather than what the business does.