How likely is it that a court will pierce the corporate veil? – watch video

How likely is it that a court will pierce the corporate veil?

When someone incorporates, the main reason is for liability protection.  They don’t want to be liable for the obligations of the business.  Piercing the corporate veil means when a court will look through the corporation and hold the shareholders liable for the obligations of the business.

The good news is that while it’s often talked about, it’s rarely seen in practice.  It’s an unusual remedy that only applies when the facts and circumstances justify it: The company is inadequately capitalized, the owners of the company use [corporate] funds as their own piggy bank, the shares of stock haven’t been issued, or the owners of the business forget that there is any separateness between them and the business.