A Legal Entity is any business structure that is given legal recognition in the eyes of the law. This could refer to a corporation, partnership, limited liability company (LLC), non-profit organization, or other such entity. The purpose of a Legal Entity is to create a separate identity for business operations, allowing it to be held accountable by law and enter legal obligations on its own behalf. This can also provide advantages in terms of tax benefits and liabilities. By establishing itself as a distinct legal entity, a business can open new opportunities while protecting itself from potential liabilities.