undercapitalization This is a topic that many people are looking for. thetruthaboutdow.org is a channel providing useful information about learning, life, digital marketing and online courses …. it will help you have an overview and solid multi-faceted knowledge . Today, thetruthaboutdow.org would like to introduce to you Undercapitalization & Piercing the Corporate Veil – All Up In Yo Business. Following along are instructions in the video below:
“Everybody i m attorney aiden. Kramer. With the law office of aiden h. Kramer in in colorado.
And you are watching all up in your business. Duh. A while ago posted a video talking about piercing..
The corporate veil and how it can be used to get to the personal assets of a business owner for the liabilities and deaths of the business. One of the factors that goes into piercing. The corporate veil is undercapitalization. Which means basically your business doesn t have enough money for it to run and to pay its debts and its liabilities.
And if your business is undercapitalized that s one factor that could lead towards a judge or court deciding to pierce the corporate veil and hold you personally liable for your business s debts. Someone asked. Me recently..
If i could expand on this concept of undercapitalization and go into a bit more detail about how exactly it leads to piercing the corporate veil. So that s what i m gonna do today the reason undercapitalization can expose you to piercing the corporate veil. It s because if you don t have enough money in your business to pay for your debts or reasonably expected liabilities or to pay for your overhead. It can look like you are purposefully keeping money out of your business in an effort to avoid any liability.
Because it s not completely unreasonable to have this thought that if i don t have any money or any assets in my business. Then if somebody sue s me they re not going to be able to collect anything so i might as well just keep everything out of my business name so it has no assets and there s nothing that can be collected if i have any lawsuits or liabilities. But doing that and especially intentionally doing that will make it look like you are doing it purposely to defraud or avoid creditors or liabilities and judges don t like that and that s an instance where they are going to pierce..
The corporate veil and hold you personally liable because you business doesn t have any assets and making sure your business has adequate capitalization and has enough money to run on and pay its debts and liabilities. It makes it look like you re a legitimate business and because you re a legitimate business. A court or a judge should uphold that corporate liability protection that you get from an llc or a corporation. So really that s it it s not too complicated basically under capitalization of your company makes it look like you re doing it to intentionally get out of your business s liabilities.
If you have any more questions about under capitalization or piercing the corporate veil. You can comment them below. And i ll also put a link to that piercing the corporate veil video in case..
You wanted to see that and see it in its entirety. If you re in colorado. And you want to speak with me personally about your business and making sure you are going to be personally protected from your businesses liabilities feel free to contact me my phone number and email are below otherwise thank you all so much for the great questions and thank you for watching i m aiden kramer and i ll ” ..
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