What does the UDF EntityHasProfile() do?
Typically you could do something like this with a LEFT JOIN:
SELECT EntityId, EntityName, CASE WHEN EntityProfileIs IS NULL THEN 0 ELSE 1 END AS Has Profile
FROM Entities
LEFT JOIN EntityProfiles
ON EntityProfiles.EntityId = Entities.EntityId
This should eliminate a need for a costly scalar UDF call - in my experience, scalar UDFs should be a last resort for most database design problems in SQL Server - they are simply not good performers.