News & Analysis as of

Limited Liability Company (LLC) Piercing the Corporate Veil

Butler Snow LLP

Veil Piercing, Revisited

Butler Snow LLP on

In 2020, when we last blogged on corporate veil piercing in Tennessee, we matter-of-factly said, “[t]he law in Tennessee on ‘piercing the corporate veil’ has not substantially changed” since previous blogs. Well, that’s no...more

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

Fox Rothschild LLP

Want to pierce the corporate veil? Plead facts, not just factors.

Fox Rothschild LLP on

Only two months into 2025, and the Business Court has already denied two motions for leave to add claims to pierce the corporate veil. My fellow-Foxer, Brad Risinger reported here on the first opinion from Judge Earp in MD...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

Kilpatrick

Current Developments in Cross-Border Litigation | Enforcement Against Foreign Controlled Party Through Reverse Pierce of the...

Kilpatrick on

Reverse piercing attaches liability for the judgment to a corporations’ owners and/or directors because they exercise complete dominion of the business, and such domination was used to commit a fraud against the plaintiff....more

PilieroMazza PLLC

Focus on S Corporations, Part 1:  Choosing the Right Entity to Meet Your Small Business Goals

PilieroMazza PLLC on

Most business owners understand the need to create an entity to operate their business. However, beyond general knowledge, many owners are unsure of when is the right time to create an entity and which type of entity makes...more

Allen Barron, Inc.

The Importance of Year-End Corporate Governance Work

Allen Barron, Inc. on

What is the importance of year-end corporate governance work? I know. I can see and hear it now: most businesspeople just roll their eyes and ask, “why do I have to go through this hassle?” What is the purpose of a corporate...more

Ogletree, Deakins, Nash, Smoak & Stewart,...

U.S. District Court in Massachusetts Weighs in on the ‘Material Change’ Doctrine and Nurse Noncompetition Exemption

A recent ruling by the U.S. District Court for the District of Massachusetts in a restrictive covenant case, Ascend Learning, LLC v. Bryan and SPIN-Learning, LLC, No. 22-cv-11978 (August 16, 2023), has implications for 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

DarrowEverett LLP

Location, Location, Location: Asset Protection for LLC Founders

DarrowEverett LLP on

A primary focus when starting a business should answer this question: What structure provides the most protection? New founders can get bogged down in the minutia about whether to choose a corporation or a limited liability...more

Patton Sullivan Brodehl LLP

Local Government Agencies Can Be “Alter Egos” Too

...Normally, a court will treat a business entity and its liabilities as separate and distinct from its owners. The alter ego doctrine allows the corporate veil to be pierced, and results in holding the owners liable for the...more

Latham & Watkins LLP

Decentralized Autonomous Organizations: Piercing the Digital Veil

Latham & Watkins LLP on

A complaint filed in federal court will test the boundaries of protection from liability for individuals behind decentralized autonomous organizations. On May 2, 2022, a putative class action was filed in the US District...more

Freeman Law

The Alter Ego Doctrine and Taxes

Freeman Law on

The Alter Ego Doctrine and Taxes What is an “alter ego?” The phrase is Latin, translating to “second I,” “another I,” or “other self.” In the federal tax context, the alter ego doctrine comes into play where the IRS...more

Husch Blackwell LLP

Delaware Court of Chancery Reaffirms LLC Member Protections

Husch Blackwell LLP on

Delaware has long been a preferred jurisdiction for business formation, partly because of its well-developed body of case law with respect to commercial disputes (which makes predicting the outcome of – and thus resolving –...more

Fox Rothschild LLP

The Court of Chancery Rejects Claim for Veil-Piercing

Fox Rothschild LLP on

In an granting a motion to dismiss a counterclaim for veil-piercing, Chancellor McCormick recently reminded litigators that “veil piercing is a tough thing to plead and a tougher thing to get.” ...more

Patton Sullivan Brodehl LLP

Alter Ego, Equity, and Reverse Veil Piercing for LLCs

Normally, a business entity is considered a legal person separate and apart from its individual owners.  But when the entity is used by an owner to perpetrate a fraud, circumvent a statute, or accomplish some other wrongful...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

Choice Of Law And Outside Reverse Veil Piercing

Allen Matkins on

Last week, I took note of the Second District Court of Appeal's decision that allows for the possibility outside veil piercing, Blizzard Energy, Inc. v. Bernd Schaefers,  2021 Cal. App LEXIS 968.   Readers may recall that the...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

Houston Harbaugh, P.C.

Pennsylvania Supreme Court Broadens the Scope of the “Piercing the Corporate Veil” Doctrine

Houston Harbaugh, P.C. on

Earlier this year, Houston Harbaugh wrote on the then-pending Pennsylvania Supreme Court case of Mortimer v. McCool, which presented the question of whether the Court would adopt the “enterprise” or “single entity” theory of...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

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