Posted on March 20, 2025 in Business

At Fox & Moghul, clients who call us are often confused by the concept of "veil piercing." This article will attempt to simplify the process.

The concept of corporate veil piercing is an important legal principle that allows creditors and litigants to hold shareholders or members personally liable for the debts or obligations of a corporation or Limited Liability Company (LLC) in certain circumstances. This article will provide an analysis of Virginia law on corporate veil piercing, focusing on a key Virginia Supreme Court case. Additionally, we will discuss the difference between veil piercing and reverse veil piercing.

Understanding Corporate Veil Piercing

Under Virginia law, corporations and LLCs are considered separate legal entities, distinct from their shareholders or members. This separation provides limited liability protection, shielding the personal assets of shareholders and members from the debts and obligations of the business entity. However, in some situations, courts may decide to pierce the corporate veil, holding shareholders or members personally liable.

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 Posted on March 17, 2025 in Business

Selecting the right business entity is one of the most critical decisions for entrepreneurs and business owners. The choice between an LLC, S Corporation, C Corporation, or Partnership has far-reaching implications on liability, taxation, management structure, capital raising, and compliance requirements. A well-informed decision can optimize tax efficiency, protect personal assets, and ensure operational flexibility.

To help business owners navigate this complex decision-making process, we’ve provided a detailed side-by-side comparison of these entity types, outlining their key characteristics, advantages, and disadvantages.

Choice of Entity Comparison

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