--- title: "Legal Entity Record" slug: "legal-entity-record" description: "Legal Entity record field reference: General info, tax settings, fiscal year, and banking tabs." updated: 2026-08-25T15:22:05Z published: 2026-08-25T15:22:05Z canonical: "docs.restaurant365.com/legal-entity-record" --- > ## Documentation Index > Fetch the complete documentation index at: https://docs.restaurant365.com/llms.txt > Use this file to discover all available pages before exploring further. # Legal Entity Record Legal entities are companies that own [locations](/doc/docs/legal-entities-location-record). Each location must belong to a legal entity, and when a transaction occurs and is connected to a specific location, it is automatically connected to the legal entity that owns the location. When a report is run by legal entity, the generated report displays results for all locations belonging to the legal entity. Users with the appropriate permissions can manually create a new legal entity using the Legal Entity Record or add multiple legal entities using the [Setup Assistant](/doc/docs/r365-setup-assistant). --- ## Navigation ****Navigation Steps - Open an Existing Legal Entity**** 1. Open the **Admin** application. 2. Click **Locations & Legal Entities** to expand the folder. 3. Click **Legal Entities**. 4. Click the **legal entity name** or double click the legal entity row. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-YQ2RUNCI.png?sv=2026-02-06&spr=https&st=2026-10-26T16%3A32%3A24Z&se=2026-10-26T17%3A32%3A24Z&sr=c&sp=r&sig=oqhGcLpFGiFuApiwgQGeDqk83W%2BFVBYClLvuT6srfWs%3D) ****Navigation Steps - Create a Legal Entity**** 1. Navigate to the **Setup Assistant**. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-EO4ELLCV.png?sv=2026-02-06&spr=https&st=2026-10-26T16%3A32%3A24Z&se=2026-10-26T17%3A32%3A24Z&sr=c&sp=r&sig=oqhGcLpFGiFuApiwgQGeDqk83W%2BFVBYClLvuT6srfWs%3D) 2. Click the **Legal Entities** step. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-1781560079972.png?sv=2026-02-06&spr=https&st=2026-10-26T16%3A32%3A24Z&se=2026-10-26T17%3A32%3A24Z&sr=c&sp=r&sig=oqhGcLpFGiFuApiwgQGeDqk83W%2BFVBYClLvuT6srfWs%3D) 3. Click **Add Legal Entity**. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-1781560102004.png?sv=2026-02-06&spr=https&st=2026-10-26T16%3A32%3A24Z&se=2026-10-26T17%3A32%3A24Z&sr=c&sp=r&sig=oqhGcLpFGiFuApiwgQGeDqk83W%2BFVBYClLvuT6srfWs%3D) 4. The **Legal Entity** record opens. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-J67LL5KC.png?sv=2026-02-06&spr=https&st=2026-10-26T16%3A32%3A24Z&se=2026-10-26T17%3A32%3A24Z&sr=c&sp=r&sig=oqhGcLpFGiFuApiwgQGeDqk83W%2BFVBYClLvuT6srfWs%3D) ****Search**** Navigate to pages with the [R365 global search bar](/doc/docs/r365-search): 1. Enter all or part of the **page name** in the R365 global search bar. 2. Select the page from the results list. > Only enabled pages can be searched for. If the desired page is not enabled, contact your CSM for assistance. ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-1745007955784.png?sv=2026-02-06&spr=https&st=2026-10-26T16%3A32%3A24Z&se=2026-10-26T17%3A32%3A24Z&sr=c&sp=r&sig=oqhGcLpFGiFuApiwgQGeDqk83W%2BFVBYClLvuT6srfWs%3D) #### --- ## Legal Entity Record ![](https://cdn.us.document360.io/5c9d1111-0c69-4e96-8910-d7f2750fdc9d/Images/Documentation/image-1781560183911.png?sv=2026-02-06&spr=https&st=2026-10-26T16%3A32%3A24Z&se=2026-10-26T17%3A32%3A24Z&sr=c&sp=r&sig=oqhGcLpFGiFuApiwgQGeDqk83W%2BFVBYClLvuT6srfWs%3D) > [!NOTE] > GL accounts that are set as default accounts **cannot** be [deleted](/doc/docs/delete-gl-accounts). | | **Field** | **Description** | | --- | --- | --- | | **1** | General | General information about the legal entity. - **Name** - The name of the legal entity. This is a required field. - **Number** - The number used to identify the legal entity. If your organization does not have numbers associated with legal entities, R365 suggests numbering them sequentially (1,2,3,...). This is a required field. - **Inactive** - Select the checkbox to make the legal entity inactive. Any open periods for the legal entity are closed to prevent transaction posting. - **Tax ID** -The tax identification number. This number appears in certain reports, including 1099 reports and ACH exports. - **State ID** -The state identification number. This number appears in certain reports, including 1099 reports and ACH exports. - **Closed Date -** Closes the period. Setting a closed date ensures that no transactions can be approved or edited after the Closed Date. Click here for more information on [Closing a Period](/doc/docs/closing-a-period). If [Advanced Close](/doc/docs/advanced-close-fiscal-year) is enabled for your organization, this field is hidden. | | **2** | Address Info | The shipping address for the legal entity. When Location Sync is enabled on a legal entity configured for R365 Payroll, all locations linked to that legal entity automatically sync to the payroll provider in real time — typically within 1–2 minutes — whenever a location is created or updated in R365. > [!TIP] > Click **Separate Billing Address** to enter a billing address that differs from the shipping address. When a Billing Address is defined, it is used as the From address on locally printed checks instead of the Shipping Address. > [!NOTE] > Addresses on the legal entity record are entered using [address verification](/doc/docs/address-verification). | | **3** | 1099 Processing | Information used to process 1099s. 1099 Processing fields include: - **This Legal Entity is a Common Payer** -If selected, the legal entity is the single reporting legal entity for your organization. - **Report 1099s Through** -A list of all legal entities with the Common Payer checkbox selected. This field is only available if the Common Payer checkbox is cleared. | | **4** | Payroll | Information used to record payroll. When 'Per Common Payer' is selected as the clearing option on the [Miscellaneous tab of the System Preferences page](/doc/docs/system-preferences-miscellaneous), the following fields are added to the legal entity record: - **Payroll Common Payer** - If selected, this Legal Entity is the Common Payer legal entity. - **Payer** - If Payroll Common Payer is not selected, use the Payer drop-down menu to select the [Parent Legal Entity/Payroll Common Payer](/doc/docs/payroll-common-payer). This field is only available if the Payroll Common Payer checkbox is cleared. - > [!WARNING] > For organizations with [R365 Workforce](/doc/docs/workforce): Changes to common payer settings after employees are onboarded can cause payroll and accounting disruptions. Only make changes when absolutely necessary. Additional fields if Workforce is enabled: - **Payroll Company ID** - Identification number for the Payroll Company. This field is only available if the Payroll Common Payer checkbox is cleared and the Payer field is empty. > [!WARNING] > If R365 Payroll is enabled, changing this number will result in Payroll errors. Contact [R365 Support](https://help.restaurant365.net/en/support/tickets/new) before adjusting this field. - **Include Tips in Payroll Export** - If selected, the tips are included when earnings are pulled into R365 Payroll. - **Ship Direct Deposit Paystubs** - If selected, paystubs for employees who have chosen to be paid by direct deposit are also created within Paycheck Runs. This option only appears if [Print & Ship](/doc/docs/r365-payroll-print-ship-paychecks) is enabled. - **Shipping Preference** - Determines the shipping method for paycheck runs submitted through Print & Ship. This option only appears if [Print & Ship](/doc/docs/r365-payroll-print-ship-paychecks) is enabled. | | **5** | Intercompany | Information used to process intercompany transactions. - **Due From Account and Due To Account -** These fields are used as part of automated intercompany. [Click here for more information on Intercompany Transactions](/doc/docs/intercompany-transactions). - **Default Checking Account -** This is used on the Payment Run form. When a legal entity is selected on the payment run, the default checking account appears in the Checking Account field for the payment run. - **Default Payroll Check Account** - The default checking account to use for payroll. This field is only available if Payroll is enabled. - **Default Payroll Location** - The default location associated with the payroll. This field is only available if Payroll is enabled. | | **6** | R365 Payments | This section is a feature used in processing payments through R365. This section is view-only and will be handled by your R365 Sales Rep or R365 Payments Specialist. [Learn more about R365 Payments.](/doc/docs/r365-payments-overview-security) | | **7** | Upload Logo | Upload an image file of the logo for the legal entity. | A restaurant or business site under a legal entity where operational and financial activity is tracked in R365. An organization or company configured in R365 that represents a distinct legal and tax-reporting unit. Legal entities contain one or more locations and define how financial and operational activity is grouped, reported, and filed. Access rights granted to users or user roles that dictate what actions they can perform within the system.