What does “piercing the corporate veil” mean, and why should you care? Your LLC or corporation creates a legal shield between you and your business. If your business gets sued, only business assets are at risk, not your personal house or savings.
But courts will “pierce the veil” of liability and hold you personally liable if you: mix personal and business finances, pay personal expenses from the business account, don’t maintain separate bank accounts, fail to file annual reports, don’t keep proper records, undercapitalize the business, or commit fraud.
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