What is a legal entity with authority to act and have liability separate from its owners?

A legal entity with authority to act and have liability separate from its owners is known as a corporation. Corporations are distinct legal structures that can enter contracts, sue or be sued, and own assets independently of their shareholders. This separation protects the owners from personal liability for the corporation's debts and obligations, limiting their financial risk to their investment in the corporation. Other examples of such entities include limited liability companies (LLCs) and partnerships with limited liability.