What is a business entity?

A business entity is a type of legal structure that can be used to conduct business in Washington. The most common business entities in Washington include corporations, limited liability companies (LLCs), and partnerships. These business entities are formed by filing documents with the Washington Secretary of State. A corporation is a business entity that has several owners and offers limited liability protection for its owners from the debts and obligations of the corporation. A corporation is a separate legal entity from its owners, meaning it can enter into contracts, incur debts, open bank accounts, and bring lawsuits. A corporation can also issue stock and raise capital, as well as receive certain tax benefits. An LLC is a business entity that also provides owners with limited liability protection from the debts and obligations of the LLC. LLCs are owned by one or more people, and the owners are referred to as “members.” LLCs are popular in Washington because they are relatively simple to form and maintain. They also provide their members with pass-through taxation, meaning members are only taxed on their share of income, losses, and distributions. Finally, a partnership is a business entity owned and managed by two or more people. Partnerships are usually formed by a written agreement and offer limited liability protection to the partners. In Washington, partnerships must register with the Secretary of State and file partnership tax returns. In conclusion, a business entity is a type of legal structure that can be used to conduct business in Washington. The most common business entities in Washington include corporations, LLCs, and partnerships. Each entity offers its owners and members limited liability protection from the debts and obligations of the company, as well as certain tax benefits.

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What is a business entity?

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