Want To Protect Your Personal Assets? Simply Having A Corporation or LLC is NOT Always Enough

Back when I was a legal intern for a large law firm, I was asked to figure out a way to break the “corporate” veil of the company we were trying to sue. “Corporate veil”? What’s that?  It’s the thing that protects you from being held personally liable for the activities of your business.  This limited liability ensures that nobody can force you to use your house, your car, your personal savings, etc., to pay off the debts your business incurs.

However, as my assignment as an intern shows, when someone wants to sue you, they don’t want to limit themselves to just your business assets, they also want to get their hands on everything you own personally.  And, unless you follow the actions outlined by Nellie Akalp, you will make it easy for them to pierce your corporate veil.  


Posted on May 13, 2014 and filed under Start-up.