Piercing the veil is an important concept for any business planning attorney to understand. Piercing the veil originated in the corporate context, but has been increasingly used by courts to hold members of limited liability company (LLCs) liable for the entity’s debts. What does it mean to pierce an entity’s veil, and what we can do to protect our clients from the risk of this occurring?

One of a small business owner’s primary goals is frequently asset protection. Small business owners are often wisely counseled not to “get into bed” with a potential business partner without conducting proper due diligence. The financial consequences should there be a fall-out in the business relationship or failure of the business could be devastating.

Ben Franklin’s famous quote, “In this world, nothing can be said to be certain, except death and taxes,” seems to get tossed around more this time of year than any other. As individuals and businesses scramble to gather and review tax records and prepare returns, promises are made that “next year we will be more organized!” One of the best ways to get organized, manage expectations, meet deadlines, and operate efficiently is to reduce responsibilities to writing. Using tools such as checklists, worksheets, questionnaires, and memoranda can help attorneys and their clients communicate effectively and stay on the same page.