A individual, group of persons, business or non-business construct that has legal rights and obligations in connection with agreements, contracts, payment and settlement, penal action, etc. A legal entity is established as per law requirements and has its own legal personality. It can enter into contracts, buy and sell, lease and take on lease, invest and deploy economic resources and take part in legal action, etc.

Legal entity usually denotes a limited company of certain type or, sometimes, a limited partnership that is set up to fulfill narrowly defined, specific, or temporary objectives (such as a special purpose vehicle, SPV).

A corporation, alternatively known as a C corp, is a legal entity that is operationally and financially independent from its owners. Corporations can do business and generate profits, and can be held legally liable for its actions.