General Ledger Set-up with Multiple Entities

Summary

I would everyone's experience with using 1 Ledger per Multiple entities vs. setting up 1 legder per entity

Content

We are going to be setting up a new Entity and may have additional entities in the future. Entities will be on the same calendar, same currency, same country, and can use the same Chart of Accounts.

In looking at the set-up options, I'm not sure what the benefits would be if we set it up as:

1. 1 Ledger per entity. How does that set-up allow entities to transact with each other. Is it harder to get a consolidated trial balance with that?