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The subject of this study was the factors that determine the non-application of the Entity Principle by entrepreneurs in the auto parts industry in the city of Montes Claros/MG. The aim of the study was to identify these factors and analyse them. To achieve these objectives, the data collection instrument chosen was the questionnaire. Initially, the study conceptualised fundamental themes such as the accounting entity, the entity principle, commerce, the business management process and difficulties in company administration. Subsequently, the data obtained was presented and analysed, and it was found that 60% of those surveyed did not apply the Entity Principle in the management of their businesses, and that among the greatest difficulties causing this behaviour are the high tax burden and the high rate of default.