Avoid Piercing the Corporate Veil

Piercing the Corporate Veil

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.

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