Entity Classification
/ˈɛn.tɪ.ti ˌklæs.ɪ.fɪˈkeɪ.ʃən/
Definitions
- (n.) The process of categorizing a person, organization, or legal structure to determine applicable legal rights, duties, and liabilities.
The entity classification affects how the business is taxed and regulated.
Forms
- entity classification
- entity classifications
Related terms
See also
Commentary
Entity classification is crucial for legal and tax treatment; precise drafting ensures clarity on classification status and implications.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.