News & Analysis as of

Creditors Piercing the Corporate Veil

Hendershot Cowart P.C.

Shielding Your Assets: How Texas LLC Owners Can Protect Against Veil-Piercing Claims

As a Texas LLC owner, member, or manager, you've made a strategic choice to separate your business and personal finances through a limited liability company structure. This critical legal barrier provides valuable protection,...more

Stradling Yocca Carlson & Rauth

California Business Divorce: Reverse Veil Piercing: Permitting a Court to Hold a Company Liable for the Debt of an Individual...

You have likely heard the term “piercing the veil.” This legal doctrine permits a court to ignore corporate formalities and hold an individual owner liable for a company’s debt. But you may be less familiar with the doctrine...more

Farrell Fritz, P.C.

Defendant Dissolves Mid-Lawsuit: What’s the Creditor’s Remedy?

Farrell Fritz, P.C. on

Generally speaking, New York courts respect the corporate form, regarding the liabilities of the entity as separate from and inapplicable to the entity’s principals. Under this principle, a plaintiff may litigate a difficult...more

Allen Matkins

Reverse Veil Piercing May Be Used to Reach an LLC's Assets

Allen Matkins on

"Piercing the corporate veil" typically occurs when a judgment creditor proves that the individual owner of a corporate judgment debtor is the alter ego of that entity, thereby allowing the creditor to pursue the individual's...more

Patterson Belknap Webb & Tyler LLP

Court Denies Attachment in Case Involving Exiled Chinese Billionaire Guo Wengui

Since high net worth individuals often operate and own assets through LLCs and other business entities, including foreign corporate entities, a plaintiff must satisfy the requirements of a veil-piercing claim in order to...more

Farrell Fritz, P.C.

Shareholder Liability For Corporate Income Tax?

Farrell Fritz, P.C. on

Limited Liability - In general, the creditors of a corporation cannot recover the corporation’s debts from its shareholders—the shareholders enjoy the benefit of limited liability protection as a matter of state law....more

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