{"ok":true,"canonical_url":"https://dealroom.so/glossary/legal-entity-structure","api_url":"https://dealroom.so/api/public/glossary/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":"legal-entity-structure","term":"Legal Entity Structure","group":"People and paperwork","definition":"This is how a business is legally organized (e.g., LLC, corporation, sole proprietorship). It impacts liability, taxes, and how the business can be bought or sold.","what_it_means":"For an acquisition, you'll decide whether to continue the seller's structure or form a new one, typically an LLC for liability protection and tax flexibility. This decision affects your personal liability and future tax obligations. Consult with your attorney and tax advisor.","url":"https://dealroom.so/glossary/legal-entity-structure","official_sources":[],"related":[{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"stock-purchase","term":"Stock purchase","url":"https://dealroom.so/glossary/stock-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":"Can a lender approve a change in a 7(a) borrower's legal entity structure without prior SBA approval?","url":"https://dealroom.so/for-lenders/questions/can-a-lender-approve-a-change-in-a-7-a-borrower-s-legal-entity-structure-without-prior-sba"},{"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"}]},"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 — Legal Entity Structure","url":"https://dealroom.so/glossary/legal-entity-structure","source_type":"DealRoom Data"}}