In the United States

United States

The United States of America is a federal constitutional republic comprising fifty states and a federal district...

 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

Limited liability company

A limited liability company is a flexible form of enterprise that blends elements of partnership and corporate structures. It is a legal form of company that provides limited liability to its owners in the vast majority of United States jurisdictions...

 or a corporation

Corporation

A corporation is created under the laws of a state as a separate legal entity that has privileges and liabilities that are distinct from those of its members. There are many different forms of corporations, most of which are used to conduct business. Early corporations were established by charter...

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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.
In New Zealand, a company is a separate legal entity from its owners (shareholders) and can, for example, be sued, and enter into contracts in the name of the company, not the shareholders.
Sole traders and partnerships are not separate legal entities from the owners.