A corporate veil is like a “bubble” that will surround an LLC or Corporation and protect its owners from being personally liable for the company’s actions. The veil is normally very secure; however, there are times when that “bubble” can be popped and owners of a company become personal avenues for law suits normally reserved for the LLC or corporation.
Tips to avoid personal liability:
- Take necessary precautions:
- Formed as either LLC or Corporation
- Follow State/Federal Regulations and rules to maintain proper status
- Keep up to date minutes and record books
- Proper documentation of transactions
- Keep business and personal separate
- Use your business for the reason it was formed
- Owners use proper titles when executing on behalf of the business
- Use your status an LLC or Corporation
- Why – other party always knows what type of entity they are dealing with and who they are dealing with
- Where?- Display on business cards, letter heads, and logo & in advertising
- Use your corporation for the reason it was formed
For more information contact an experienced attorney at Epiphany Law, LLC at 920.996.000.