Can you fix a pierced corporate veil?
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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 12 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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