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What is the meaning of seperate legal entity ?? Please tell fast tomorrow is my exam of bst

Dear student,

Separate legal entity means that the business has a separate legal identity independent of its members. The members of the company can not be held liable for the acts of the company. The company can enter into contracts on its own name, it can sell, purchase or lease property in its own name, it can sue and can be sued by others. The debtors or creditors of company are not debtors or creditors of the members.

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The word separate legal entity means that the business is totally distinct from its owner as ifthe pwner dies or get imprisonment then the company will not die it will last for year after year
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right
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A legal entity, typically a business, that is defined as detached from another business or individual with respect to accountability. A separate legal entity may be set up in the case of a corporation or a limited liability company, to separate the actions of the entity from those of the individual or other company.


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Means that business and owner are seperate from each other. Neither owner pay business personal expenses nor the business pay owner personal expenses
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