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. […]