• About Me
  • Courses
  • Contact
    • Ads
  • Press & Media
  • Free eBook
  • Free Facebook Group
  • Disclosures
    • Privacy
Yes, I Am Cheap
ADVERTISEMENT
  • Home
  • News
    • All
    • Politics
    stimulus

    Why You Might Not Get A Stimulus Payment

    Credit card security, equifax data breach

    How to Claim $125+ from the Equifax Data Breach Settlement

    foreclosure homes - When Does It Make Sense to Refinance?

    When Does It Make Sense to Refinance?

    no apple

    Get A New iPhone? Heck No!

    poor definition

    Mom Fired For Working At McDonald’s While Kid Plays In Park…Was She Wrong?

    What’s Keeping You From Finding A Job

    U.S. Students Fall Behind: Seemingly Get Dumber By The Minute

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Lifestyle
    • All
    • Food
    • Health
    mask insert

    Wearing A Mask? This Can Help You Breathe Easier

    high deductible health plan

    What Is A High Deductible Health Plan?

    free thanksgiving dinner

    How to Get Your Thanksgiving Meal for Free

    using hand sanitizer, your own

    How to Make Your Own Hand Sanitizer

    Yoga pose

    5 Ways to Practice Yoga on a Budget

    Traveling, new cultures, Start a Saving Challenge, Spend Smart on Food

    3 Simple Ways to Save for A Vacation

    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
    • Fashion Week
  • Investing
  • Make Money
  • Learn Something
  • News
  • Reduce Debt
  • Rental Property
No Result
View All Result
  • Home
  • News
    • All
    • Politics
    stimulus

    Why You Might Not Get A Stimulus Payment

    Credit card security, equifax data breach

    How to Claim $125+ from the Equifax Data Breach Settlement

    foreclosure homes - When Does It Make Sense to Refinance?

    When Does It Make Sense to Refinance?

    no apple

    Get A New iPhone? Heck No!

    poor definition

    Mom Fired For Working At McDonald’s While Kid Plays In Park…Was She Wrong?

    What’s Keeping You From Finding A Job

    U.S. Students Fall Behind: Seemingly Get Dumber By The Minute

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Lifestyle
    • All
    • Food
    • Health
    mask insert

    Wearing A Mask? This Can Help You Breathe Easier

    high deductible health plan

    What Is A High Deductible Health Plan?

    free thanksgiving dinner

    How to Get Your Thanksgiving Meal for Free

    using hand sanitizer, your own

    How to Make Your Own Hand Sanitizer

    Yoga pose

    5 Ways to Practice Yoga on a Budget

    Traveling, new cultures, Start a Saving Challenge, Spend Smart on Food

    3 Simple Ways to Save for A Vacation

    Trending Tags

    • Golden Globes
    • Game of Thrones
    • MotoGP 2017
    • eSports
    • Fashion Week
  • Investing
  • Make Money
  • Learn Something
  • News
  • Reduce Debt
  • Rental Property
No Result
View All Result
Yes, I Am Cheap
No Result
View All Result

Keeping the Corporate Veil Intact

Sandy Smith by Sandy Smith
February 5, 2021
in Learn Something
0
Business Boardroom- corporate
Share on FacebookShare on Twitter

This post may contain affiliate links which may compensate us based on your interaction. Please read the disclosures for more information.


Welcome back! Have you checked out the free webinar on how to establish credit for your small business?


One of the greatest benefits that having a corporation can offer is by offering the corporate veil. Legalzoom reviews and the like point out that the corporate veil is one of the primary devices which shields directors, owners, and shareholders of a corporation from being forced to use their own personal resources when the corporation creditors come knocking.

However, the protection that the corporate veil offers can be pierced when certain factors are present. While specific laws vary from state to state, these are the general factors which are considered if a creditor attempts to cut through this protected status to take away personal assets in satisfaction of a corporate debt. You will want to check with an attorney or your state specific corporation laws to learn the precise requirements as some of the factors can be extremely specific.

Factors for Piercing the Corporate Veil

  • Whether or not this is a close corporation. Close corporations are privately owned with less than 50 or so shareholders and only privately traded.
  • The corporation is under capitalized, meaning it doesn’t have enough money and may also have too much debt. This may also apply in situations when there is more debt than income.
  • The corporation has ignored corporate formalities such as recording minutes, hosting regular business meetings, and following the state’s corporate compliance laws.
  • Fraudulent representations have been made of some kind or another to an innocent party.
  • The shareholders, directors, officers, and other significant persons in the corporate share numerous roles, which is quite common in close corporations because they are so small.
  • Corporate and personal funds are mingled in the same account.
  • Corporate records are not maintained.
  • Individual or personal debts are being paid out of corporate funds.

What to Watch For

Some of the most common pitfalls for close corporations according to Legal Zoom is the adherence to corporation formalities. It can be difficult to keep all of the funds separate while at the same time keeping up with corporate meetings and maintaining the records. Avoiding fraudulent misrepresentations on the other hand is not so difficult so long as you have a scrupulous corporation. And it can be easy to think that once or twice failing to follow the corporate requirements. But don’t risk it. Keeping up with the small things will help protect you in the long run from the big things.

Related

Previous Post

Important Things to Remember When Considering a Cash Out Refinancing Option

Next Post

The Consequences of Too Much Debt

Sandy Smith

Sandy Smith

I started this blog years ago as a way of keeping myself accountable to my own debt reduction plans. Now I'm using this site to help others get out of debt, and learn about personal finance so that they can live their best lives.

Next Post
erase-debt - credit cards - Tips for Paying Off 2015 Holiday Debt

The Consequences of Too Much Debt

Stay Connected

  • 5.6k Fans
  • 10.1k Followers
  • 4.7k Followers
ADVERTISEMENT
  • Trending
  • Comments
  • Latest
make money with photography

Make Money with Photography Using These Tips

February 4, 2021
stimulus

Why You Might Not Get A Stimulus Payment

January 29, 2021
Sports Equipment

Saving On Sports Equipment For Your Kids

February 5, 2021
Cost of Living in the 1950’s as Compared to Today in 2013

Cost of Living in the 1950’s as Compared to Today in 2013

February 5, 2021
Federal Student Loan Debt Relief

Why Some People Should Wait Before Applying for Student Loan Forgiveness

October 18, 2022
AirBnb Experiences

Why Airbnb Experiences Are The Best Side Hustle

July 10, 2021
mask insert

Wearing A Mask? This Can Help You Breathe Easier

February 21, 2021
Scams

What’s The Deal With All The Scammers Lately?

February 18, 2021

Recent News

Federal Student Loan Debt Relief

Why Some People Should Wait Before Applying for Student Loan Forgiveness

October 18, 2022
AirBnb Experiences

Why Airbnb Experiences Are The Best Side Hustle

July 10, 2021
mask insert

Wearing A Mask? This Can Help You Breathe Easier

February 21, 2021
Scams

What’s The Deal With All The Scammers Lately?

February 18, 2021

Helping you live your best financial life through personal finance news and education

Follow Us Everywhere

Browse by Category

  • About Me
  • Auto
  • Credit
  • Credit Cards
  • Finance 101
  • Food
  • Get Out of Debt Course
  • Health
  • Investing
  • Learn Something
  • Lifestyle
  • Make Money
  • News
  • Off The Reservation
  • Partner Posts
  • Politics
  • Rants
  • Reader Advice
  • Recipes
  • Reduce Debt
  • Rental Property
  • Save Money
  • Scams
  • Special Offers
  • Spend Money
  • Sponsored Posts
  • Video Pick
  • Weekly Roundup
  • Work

Recent News

Federal Student Loan Debt Relief

Why Some People Should Wait Before Applying for Student Loan Forgiveness

October 18, 2022
AirBnb Experiences

Why Airbnb Experiences Are The Best Side Hustle

July 10, 2021
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2021 Say Yes Services LLC. All rights reserved.

No Result
View All Result
  • About Me
  • Courses
  • Contact
    • Ads
  • Press & Media
  • Free eBook
  • Free Facebook Group
  • Disclosures
    • Privacy

© 2021 Say Yes Services LLC. All rights reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT