What is Piercing the Corporate Veil?
Individuals form legal business entities such as a corporation or a limited liability company in order to protect their personal assets from the liabilities and debts of the business. Each type of legal entity features its own array of benefits and protections based on the governing statutes and case law. When the business managers do not comply with these statutes and laws such as filing an annual report, they expose the owners of the business or principals, to risk, the risk of having a plaintiff or creditor levy a judgment against the principals' personal assets.
When the court looks past the legal entity to the principals of the business, it's known as "piercing the corporate veil." Principals are no longer afforded the limited liability and asset protection features provided by statute and become individually liable for the corporation's liabilities and debts.
Contact us today to learn how Company Guard Compliance can help protect your personal assets.