A corporate entity structure, also known as a legal entity or business form, is an organizational structure that establishes the identity of a business in the eyes of the law. This type of structure defines the company’s membership, its rights and responsibilities, and the rules by which it will operate in the eyes of government and society. The most common corporate entity structures include corporations, limited liability companies (LLCs) and sole proprietorships. Each structure has unique characteristics that determine how a business is taxed, its protection from liability, and the process of management decision-making. When choosing a corporate entity structure for your business, it is important to consider what options are available and understand the implications each type will have on your legal position.