What is a Natural Person in Law and Business?

A natural person is an individual human being, as opposed to a legal entity such as a corporation, partnership, or trust. In law and business, a natural person is often referred to as an individual or a human being. This term is used to distinguish individuals from legal entities, which are created by law and have their own separate existence.

In the context of law, a natural person is someone who has the capacity to enter into contracts, own property, and be held legally responsible for their actions. This includes individuals who are citizens of a country, residents of a state, or have a permanent address. Natural persons are also referred to as individuals, humans, or persons.

In business, a natural person is often referred to as an entrepreneur or a small business owner. This term is used to distinguish individuals who own and operate their own businesses from larger corporations or partnerships. Natural persons are also referred to as sole proprietors, self-employed individuals, or small business owners.