Traditional rules of Massachusetts common law permitted utilization of the doctrine of piercing the corporate veil in two distinct circumstances. This result is accomplished through application the legal doctrine of piercing the corporate veil. However, Massachusetts courts have carved out certain circumstances in which the Court may disregard the corporate form and hold shareholders of a corporation individually liable for the debts, judgments and obligations of a corporate entity. Under generally accepted legal principals, a corporation is a separate legal entity from its shareholder(s), and individual shareholders are not liable for corporate debts, including judgments and liability against the corporation. When Is the Doctrine of Piercing the Corporate Veil Applied? Piercing the Corporate Veil is one instance where a business owner may be at risk. An LLC does not completely guarantee that a business owner’s personal assets are protected from creditors. Are small to mid-sized business owners’ personal assets protected when they operate as an LLC?Ī. Employee Benefits and Executive Compensationīy: Jeremy Weltman ~ November 9, 2016.Choice of Entity – Starting a New Business.
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