New York has set a high bar for individuals seeking to “pierce the corporate veil,” which is by definition attempting to sue corporate officers or limited liability company owners directly for damages. Usually a corporation is treated as a separate legal person, but even a high bar cannot protect business owners from potential lawsuits.
The legal concept of corporate personhood usually tends to shield owners of limited liability companies and corporations from personal liability in case of a business loss. However, sometimes an individual is so clearly using the corporation as a personal bank account that it may be possible for plaintiffs to sue the owner directly for fraud.
So, how do you protect yourself from a personal loss for business activities?
For more information about business litigation, discuss your case with an experienced business law attorney.