The term ‘legal entity’ should be construed broadly. Some of the characteristics of a legal entity to consider include:
- Does the entity file a tax return?
- Did the entity file organization documents with a governmental agency?
- Does the entity have a governing board (e.g., something similar to a board of directors);
- Is the entity required to file reports of any kind with a governmental agency?
- Can the entity enter into contracts in its own name?
- Does the entity have a bank account?