Posts tagged Personal Liability
I Just Filed the Certificate of Incorporation . . . Is My Business Ready to Go?
I Just Filed the Certificate of Incorporation . . . Is My Business Ready to Go?

Not quite. Filing the Certificate of Incorporation is the first of several steps towards setting up and running a legitimate business corporation. In a previous blog post, I discussed the basics of avoiding personal liability when it comes to running an LLC or corporation. What follows after filing the certificate of incorporation, helps to protect against exposing yourself to liability and lays the foundation for a successful venture, should you decide to start your own business.  For the purposes of this post, I'll cover the basics of what comes after you file the initial organizing documentation for your corporation.

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Business Law, Practical TipsMichael CarboneCarbone Law, LLCCorporations, Personal Liability, By-laws, Board of DirectorsComment
How to Avoid Personal Liability When Running an LLC or Corporation?
How to Avoid Personal Liability When Running an LLC or Corporation?

In order to discuss this topic, it's important to gain a basic understanding of the legal concept of "piercing the corporate veil." What this means is that in certain circumstances, when properly invoked, a court may "pierce the veil" of a corporate entity and hold the owners personally liable for the obligations of their corporation or LLC. It allows for a corporation's separate legal existence to be disregarded in order to prevent fraud and achieve fairness. This doctrine is often invoked by a third-party seeking to circumvent the limited liability that is afforded to owners and hold them liable for corporate obligations.

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Business Law, Practical TipsMichael CarboneCarbone Law, LLCLimited Liability Companies, Corporations, Personal LiabilityComment