Separate legal entity
In the United States, a separate legal entity or SLE refers to a type of legal entity with detached accountability. A business can be set up as an SLE to legally separate it from the individual or owner, such as a limited liability company or a corporation.
If a business is a separate legal entity, it means it has some of the same rights in law as a person. It is, for example, able to enter contracts, sue and be sued, and own property. Sole traders and partnerships are not separate legal entities from the owners.
