Best Place to Book company formation Attorney

Best Place to Book company formation Attorney

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In this exciting episode of Litigation Whiteboard┬« Attorney Steve┬« discusses typical grounds for PIERCING THE CORPORATE VEIL. When you start a valid corporation or LLC (perhaps even a partnership depending on your state laws) a “corporate veil” attaches with protects the owners from PERSONAL LIABILITY (meaning an aggrieved Plaintiff cannot sue the owner of the company personally because of the existence of the “corporate veil.”

However, there are times when the corporate veil can be “pierced” under the law. Here are a few of the grounds mentioned in the video (check your state laws for more information).

1. Inadequate financing or capitalization

2. Failure to follow corporate formalities (ex. failing to hold meetings, paying dividends, following your own corporate bylaws, etc .)

3. Corporation formed for the purpose of perpetrating a fraud (sham corporations)

4. Treating the corporation as your “alter ego” (commingling funds, etc.)

5. Fairness and equity require piercing the corporate veil to avoid a gross miscarriage of justice (for example, elder abuse cases)

6. Willful copyright infringement (for example using unlicensed software, downloading and sharing videos without permission, or infringing on another’s copyrights for personal financial gain).

These are some of the main points discussed. If you like these FREE VIDEOS – how about a THUMBS UP – I am working hard over here!! ; )

Make sure to SUBSCRIBE!! I have many great legal videos planned for 2021.

– Steve Vondran, Esq.-

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