Legal personhood is a status granted to an entity, allowing it to have legal rights and responsibilities. This concept applies not only to individuals but also to organizations like corporations, nonprofits, and even certain animals in specific jurisdictions. Legal personhood enables these entities to enter contracts, sue or be sued, and own property. The idea of legal personhood is essential in the legal system, as it helps define who can participate in legal processes. For example, while a human has inherent rights, a company must be recognized as a legal person to operate effectively within the law.