News & Analysis as of

Limited Liability Company (LLC) Personal Liability 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

Allen Matkins

Alter Ego, LLCs And Choice Of Law

Allen Matkins on

In deciding whether to impose alter ego liability with respect to a limited liability company, a federal court has several possible choices.  It could apply the law of the state of formation of the LLC, it could apply the...more

Allen Matkins

Court Holds Corporations Owed Duty To Protect Third Parties From Abuse By Sole Shareholder

Allen Matkins on

Michael Jackson died in 2009.  After his death, two plaintiffs filed complaints against two corporations of which Michael Jackson was the sole shareholder.  The trial court sustained the plaintiffs' demurrer setting up...more

Cohen Seglias Pallas Greenhall & Furman PC

PA Business Owners Beware—Mortimer v. McCool Creates New Exposure for Sister Companies in Piercing-the-Corporate-Veil Claims

Clients often worry if they can be held personally liable for a company in which they have an ownership interest. This is often followed by the question of whether one of their companies can be responsible for the obligation...more

Freiberger Haber LLP

25% Owner Held Not to Have Dominated and Controlled Corporate Entity to Pierce the Corporate Veil

Freiberger Haber LLP on

By: Jeffrey M. Haber This Blog has previously written about the benefits of forming a corporation or a limited liability corporation and the perils of ignoring the corporate formalities that are attendant thereto. In today’s...more

Allen Matkins

Outside Reverse Veil Piercing And LLCs

Allen Matkins on

"Outside reverse veil piercing" allows a shareholder's creditor to reach corporate assets.  In Postal Instant Press, Inc. v. Kaswa Corp., 162 Cal. App. 4th 1510 (2008), the Fourth District Court of Appeal rejected outside...more

Freeman Law

Alter Ego and The Fifth Circuit Court of Appeals: Texas Business Owner Personally Liable for His Corporation’s Failure to Pay...

Freeman Law on

In a recent case before the Fifth Circuit Court of Appeals, the court was faced with the following question: Whether a business owner could be held personally liable for his corporation’s failure to pay taxes.  Its answer?...more

Freeman Law

Piercing the Corporate Veil

Freeman Law on

A corporation is a separate legal entity. This status normally insulates its owners or shareholders from personal liability for the corporation’s obligations. But Texas law recognizes exceptions to this general rule. ...more

Allen Matkins

California Court Addresses Outside Reverse Veil Piercing Of Chimeric LLC

Allen Matkins on

Reverse veil piercing involves subjecting an entity to the liabilities of its owner. As Professor Bainbridge has noted, there are two types of reverse veil piercing...more

Conyers

Piercing the Corporate Veil, or ‘Alter Ego’ liability, in the Cayman Islands, Bermuda, and the British Virgin Islands

Conyers on

Creative attempts to ‘pierce the corporate veil’ sometimes come before the Courts of Bermuda, the British Virgin Islands, and the Cayman Islands. In some cases, an attempt is made to establish personal liability on the...more

Patton Sullivan Brodehl LLP

Alter Ego Claims — Beware Attorney Fee Liability

One of the essential purposes of forming an entity and conducting business through that entity is to limit the owners’ personal liability. California law generally views the entity and its owners as separate and legally...more

Holland & Hart LLP

Alter Ego: When Individuals May Be Liable for Corporate Debts

Holland & Hart LLP on

Nevada encourages business ventures and entrepreneurism by allowing individuals to form corporations as a shield against personal liability. Generally, individuals are considered separate from the corporations they control....more

Patton Sullivan Brodehl LLP

LLC Money-Shuffling and “Alter Ego” Liability

The “alter ego” doctrine allows a creditor of a business entity to “pierce the corporate veil” and enforce the debt against the company’s individual owners.  The standards for proving alter ego liability are high, and the...more

Law School Toolbox

Law School Toolbox Podcast Episode 280: Listen and Learn -- Piercing the Corporate Veil

Law School Toolbox on

Welcome back to the Law School Toolbox podcast! Today, we have another episode in our "Listen and Learn" series, where we review a substantive area of the law and apply that law to fact patterns. This time we're looking at...more

Law School Toolbox

Bar Exam Toolbox Podcast Episode 120: Listen and Learn -- Piercing the Corporate Veil

Law School Toolbox on

Welcome back to the Bar Exam Toolbox podcast! Today, we have another episode in our "Listen and Learn" series, where we review a substantive area of the law and apply that law to fact patterns. This time we're looking at...more

Butler Snow LLP

Veil Piercing Redux

Butler Snow LLP on

The law in Tennessee on “piercing the corporate veil” has not substantially changed since our last blog on the subject. The Tennessee Court of Appeals has recently, and cogently, restated and reconfirmed the state law...more

Pullman & Comley, LLC

Connecticut Moves to Protect Business Owners and Investors

Pullman & Comley, LLC on

This past session, the Connecticut General Assembly has adopted legislation to provide clarity and predictability to business owners and the investors regarding when their personal assets could be at risk because of the...more

Patton Sullivan Brodehl LLP

“Reverse Veil Piercing” to Reach an LLC’s Assets

“Piercing the corporate veil” — also referred to as “alter ego” liability — is a familiar concept under California law. Ordinarily, a corporation or other entity (such as an LLC) is considered a legal entity separate and...more

Sullivan & Worcester

Knoedler Gallery Owners May be Liable for Forgery Scandal, Jury Will Decide

Sullivan & Worcester on

The sprawling saga of the M. Knoedler & Co. Gallery forgery scandal is approaching a full decade since the storied gallery closed abruptly in 2011 (fuller background further below). The last pending civil suit related to the...more

Allen Matkins

Alter Ego And The California LLC

Allen Matkins on

Yesterday's post concerned a recent federal district court decision applying the corporate alter ego doctrine to a Nevada limited liability company. Bustos v. Dennis, 2018 U.S. Dist. LEXIS 45764. An update to this post...more

Allen Matkins

Court Applies Corporate Alter Ego Law To Nevada LLC

Allen Matkins on

Corporations and limited liability companies share a key feature - insulation of owners from the liabilities of the entity. In the 19th century, courts began to fashion a significant exception to this principle for...more

Cohen Seglias Pallas Greenhall & Furman PC

First Department of New York Loosens the Standard for “Piercing the Corporate Veil”

One of the general and principal benefits of incorporating a business entity is limited liability; the owners of a corporation are not liable for the corporation’s actions or debts. There are, however, exceptions. One of the...more

Proskauer - The Capital Commitment

Veil Piercing/Alter Ego Determinations – How Fund Managers Can Protect Themselves

A veil piercing claim can be a worst-case scenario for a private fund manager dealing with a struggling portfolio company investment – the company fails, and ensuing legal claims are brought not only against the portfolio...more

Williams Mullen

Single Purpose Limited Liability Companies for Liability Protection: A Word of Caution

Williams Mullen on

It has become a fairly common practice among commercial and investment real estate owners to hold title to their various parcels in single purpose entities (“SPE’s”), most commonly limited liability companies (“LLC’s”). Many...more

Allen Matkins

California Court Green Lights Reverse Veil Piercing Of Delaware LLC

Allen Matkins on

Courts historically have applied the alter ego doctrine to “pierce the corporate veil” so that a shareholder may be held liable for the debts or conduct of the corporation. California has extended the possibility of alter...more

25 Results
 / 
View per page
Page: of 1

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide