{"ok":true,"canonical_url":"https://dealroom.so/glossary/business-legal-entity-structure","api_url":"https://dealroom.so/api/public/glossary/business-legal-entity-structure","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"business-legal-entity-structure","term":"Business legal entity structure","group":"People and paperwork","definition":"This refers to how a business is legally organized, such as a sole proprietorship, partnership, LLC, or corporation. Your chosen structure impacts liability, taxes, and how you acquire and operate the business.","what_it_means":"When acquiring a business, you'll decide whether to continue the seller's entity structure or form a new one. This choice affects your personal liability, tax obligations, and how the assets are transferred. Discuss this with your attorney and tax advisor early in the process.","url":"https://dealroom.so/glossary/business-legal-entity-structure","official_sources":[],"related":[{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"}],"related_questions":[{"question":"What if the acquired business changes its legal entity structure after the SBA loan is approved?","url":"https://dealroom.so/sba-7a/questions/what-if-the-acquired-business-changes-its-legal-entity-structure-after-the-sba-loan-is-app"},{"question":"What happens if the acquired business changes its legal entity structure after the SBA loan is approved?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-acquired-business-changes-its-legal-entity-structure-after-the-sba-loa"},{"question":"Can a lender approve a change in a borrower's business legal entity structure without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-approve-a-change-in-a-borrower-s-business-legal-entity-structure-without-prio"},{"question":"What happens if a major change in the acquired business's legal entity structure occurs after SBA loan approval?","url":"https://dealroom.so/for-lenders/questions/what-happens-if-a-major-change-in-the-acquired-business-s-legal-entity-structure-occurs-af"},{"question":"Are there specific requirements for the legal entity structure of the acquiring business for an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/are-there-specific-requirements-for-the-legal-entity-structure-of-the-acquiring-business-f"},{"question":"Can a 7(a) lender approve a change in a borrower's business legal entity structure without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-lender-approve-a-change-in-a-borrower-s-business-legal-entity-structure-without-"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Business legal entity structure","url":"https://dealroom.so/glossary/business-legal-entity-structure","source_type":"DealRoom Data"}}