LLC Liability Protection is not Unlimited
How much protection do LLCs really give you? Well, it depends. In New York, forming an LLC can give you significant tax benefit and a more flexible business model than the old-fashioned corporate form. But this flexibility has its limits. Increasingly, New York courts apply the doctrine of “piercing the corporate veil” to LLCs where its members have exercised complete dominion over the LLC’s business assets to further personal goals to the detriment of another. In other words, courts have created a sister “piercing the LLC veil” theory allowing an injured party to reach the personal assets of the LLC’s members. To read more about this topic, look for WRM Partner Olivera Medenica’s upcoming article publication entitled “Does your LLC protect your personal assets? You tell me.”
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