What is a Corporate Veil?

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May 14, 2014

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The corporate veil that is created when you form your business entity is the legal barrier that keeps trial attorneys who sue your business from attaching your personal assets as part of a settlement or judgment. Depending on the state where your company is incorporated, that process is either next to impossible or fairly easy to do. The difference, of course, is the state law under which your corporation or LLC was formed. In the state of Nevada, the corporate veil may be pierced only if the owner of a company is deemed to have committed deliberate fraud or a similar offense called “manifest injustice.” And, those charges have to be proven in a court of law in the state of Nevada, not the state where the alleged offense took place.

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