The Corporate Veil in both corporations and limited liability companies is what separates you from your business entity financially and legally. That is what the limited liability stands for in LLC, and is the main reason for forming a corporate entity or LLC. However, if you co-mingle the assets between your organization and your personal finances, or between two or more of your organizations, you can lose that protection, which is called “piercing the corporate veil.” The act of defending your corporate veil falls to your lawyer in a court of law, but the primary determination of the legitimacy of your corporate veil stems from your accounting, operating, and cash management behaviors. Your consulting business CPA firm should be able to help you properly document things and build processes to avoid problems.
We have experience with Corporate Accounting, Partnership Accounting, multiple level LLC structures, and all the various iterations that can cause business owners to get tripped up. By engaging in regular reviews of your finances, and identifying and fixing problems quickly, we can help you protect your corporate veil from attack and help you protect your business assets.