Business, Legal & Accounting Glossary

Definition: Entity


Quick Summary of Entity

that which is perceived or known or inferred to have its own distinct existence (living or nonliving). A thing that exists in its own right. The law recognizes corporations and people as entities with rights and legal obligations.

What is the dictionary definition of Entity?

Dictionary Definition

n. a general term for any institution, company, corporation, partnership, government agency, university or any other organization which is distinguished from individuals.

  1. That which has a distinct existence as an individual unit. Often used for organisations which have no physical form.
  2. The existence of something considered apart from its properties.
  3. Anything about which information or data can be stored in a database; in particular, an organised array or set of individual elements or parts.
  4. The state or quality of being or existence.

Full Definition of Entity

An organization, institution, or being that has its own existence for legal or tax purposes. An entity is often an organization with an existence separate from its individual members–for example, a corporation, partnership, trust, estate, or government agency. The entity is treated as a person; it can function legally, be sued, and make decisions through agents.

Examples of Entity in a sentence

The entity that is responsible for distributing funds in the debtors bankruptcy case is the bankruptcy trustee whom we can contact.

You must treat your LLC as a completely separate entity from yourself if you expect to have all the liability protections of your state.

After completing the appropriate paperwork, they finally became a legal entity and were able to focus on important business tasks.

Related Phrases

interest expense
prepaid insurance
breakup value
tracking stock
total assets
credit inquiry
agency bond
special purpose entity
flow through entity
economic entity assumption
entity trading account
variable interest entity
legal entity
business entity concept
accounting entity

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Entity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
November 29, 2023 https://payrollheaven.com/define/entity/.
Chicago Manual of Style (CMS):
Entity. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/entity/ (accessed: November 29, 2023).
American Psychological Association (APA):
Entity. PayrollHeaven.com. Retrieved November 29, 2023
, from PayrollHeaven.com website: https://payrollheaven.com/define/entity/

Definition Sources

Definitions for Entity are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 21st November, 2021 | 0 Views.