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noun. Legal structure refers to the specific framework or arrangement that a business adopts to operate and conduct its affairs in compliance with the laws and regulations of a particular jurisdiction. It defines the way a business is organized, owned, managed, and controlled, as well as how it interacts with various stakeholders. The legal structure is important as it determines the liability of the business, tax obligations, decision-making processes, and other factors that can significantly impact the operations and success of the organization. Common types of legal structures include sole proprietorships, partnerships, corporations, limited liability companies (LLCs), and nonprofit organizations, each with their own unique characteristics and legal requirements. GPT3.5
Word Forms:
- noun.
legal structure (singular),
legal structures (plural)
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