One of the principal reasons that individuals operate their businesses under a limited liability entity, such as a corporation or an LLC, is to shield their personal assets from exposure to liability resulting from such businesses. However, if a business owner fails to comply with certain corporate formalities, the business owner’s personal assets may be exposed to liability arising out of his or her business under a “piercing the corporate veil” argument.
To protect against this possibility, business owners should consult with a corporate attorney to identify the steps that should be taken to comply with such corporate formalities and then take the requisite actions to satisfy such requirements. Business owners who are interested in learning more about these issues should contact Paul T. Rushton, the Chair of our Firm’s Business & Finance Department.
Paul can be reached by phone at 570-826-5623 or via e-mail at firstname.lastname@example.org.