Can you fix a pierced corporate veil?

I recently filed for a LLC for my business. It is a single-owner LLC and for tax purposes reported as a sole-proprietorship. Not realizing this could lead to the piercing of my corporate veil, I have already co-mingled personal and business funds/expenses. Is there anything I can do to fix the situation so that if I were to get sued my corporate veil would remain intact?

Asked on November 3, 2011 under Business Law, Kentucky

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

The most effective way to fix this is to create a new LLC and this time, keep business and personal funds, liabilities, and assets strictly separate. Note that you can sell any assets the existing LLC owns to the new one--and that includes the name and any other intellectual property. (And while


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