A company has a separate legal entity and A partnership does not ...so what is separate legal entity?...Thanx
2006-09-07 00:25:32 · 0 answers · asked by James 3 in Education & Reference ➔ Homework Help
A corporation is a separate legal entity from its owners. In other words, if a corporation, in the course of doing business, is involved in any legal action, then the corporation, for legal purposes, is it's own person. The corporation is liable for it's taxes - not the owner. This is how corporations may sue and be sued, and their assets are tracked separately. If a corporation is sued, then the owners will not have their personal belongings at risk unless those belongings were purchased with illegal returns from the corporation.
In a sole proprietorship or partnership, the owners *are* the company, and are also personally liable. For all intents and purposes, all acts taken by these two company types are taken by the owners themselves.
2006-09-07 01:45:00 · answer #1 · answered by ³√carthagebrujah 6 · 5⤊ 0⤋
Separate Legal Entity
2016-10-01 06:30:03 · answer #2 · answered by ? 4 · 0⤊ 0⤋
If it is a seperate legal entity the lawsuit should be directed at that company and no other, however if that smaller company is part and parcel of the larger company then a lawsuit can generally be brought against either. You can also contact either companies legal department and ask them how a lawsuit should properly be filed against the smaller company. In either situation lawsuits are complex and these simple questions can be answered by a competent civil attorney in your jurisdiction.
2016-03-18 06:30:15 · answer #3 · answered by Dorene 4 · 0⤊ 0⤋