Legal entities should typically be established for each entity that has its own tax identification number. An example would be a parent company with subsidiaries. The parent organization and each subsidiary would be designated as specific legal entities. This enables each entity to have their own set of financial reports (e.g., balance sheet, income statement). Unanet ensures that the debits and credits balance within a legal entity. There are important considerations to keep in mind when deciding to use multiple legal entities.

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