Explanation:

A separate legal entity is a person recognised by law - a "legal person". The entity has its own legal rights and obligations, separate to those running and/or owning the entity. That person could be a company, limited liability partnership, or any other entity recognised by law as having its own separate legal existence.

An “incorporated” entity - such as a company - is a separate legal entity. That’s a separate legal existence to its:

• founders: the natural persons that caused it to be formed
• directors: those that control the company
• shareholders: those that own the company.