Under the alter ego theory, the creditor seeking to pierce the veil of limited liability must prove that the owner did not operate his |
The management structure and operating rules for the limited liability company (LLC) and statutory close ... |
As we've discussed elsewhere, an owner can fund the business entity as an owner and as a creditor with debt such as leases and loans when using operating and ... |
Co-mingling of assets involves the owner using business resources for personal purposes, or the business using the owner's personal resources for business purposes. Co-mingling is also a primary ... |
In some instances, the small business owner will personally own mixed-use assets, used for both personal and business purposes. Good examples are a home where the owner has a home-based business, a ... |
To avoid court application of the alter ego theory, it is important to separate and document ownership of assets. |
A failure to hold required meetings or execute written waivers has been used to pierce the veil of limited liability in numerous cases through application of ... |
In order to avoid application of the alter ego theory, not only must an owner separate personal and business affairs, but also separate activities among ... |
Besides application of the alter ego theory, there is another way a creditor can pierce the veil of limited ... |
In almost every case where courts have pierced the veil of limited liability based on the undercapitalization ... |
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