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The Corporate Veil: Is your corporation shielding an alter ego?

For centuries, individuals have been starting their own businesses. One of the perks to starting your own corporation or limited liability company is that you usually won’t be held personally responsible for the company’s liabilities. This is the corporate veil, and courts are generally unwilling to pierce it. But it’s n

ot an iron-clad shield.

There are certain factors courts examine to determine whether or not the corporate alter ego doctrine applies. The infographic below shows some of the factors a court might use to determine if your corporation is an alter ego:

clientuploads/Publications/Is Your Company Shielding an Alter Ego thumbnail.JPG

(Click to view larger.)

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