Just as teachers assign students summer homework to keep kids’ skills sharp, business owners too must do some corporate homework this summer to ensure their corporate shield remains strong in light of the COVID landscape.
The corporate veil shields the personal assets of shareholders of a corporation (or members of a limited liability company (“LLC”)) from the reach of the business’ creditors, judgments, and liabilities. Without this shield, individual owners’ assets could be garnished to satisfy the business’ obligations.
The corporate veil may be pierced, and personal assets put at risk, if the business does not operate as a stand-alone entity, known in the parlance as being an ‘alter ego of its owners’.
Read our full discussion of this issue at https://rcbizjournal.com/2020/08/05/bolster-your-companys-corporate-veil-against-covid-era-liabilities/
For more information about this article or other issues, please contact us, The Bachman Law Firm PLLC at firstname.lastname@example.org or 845-639-3210.