Corporations, limited liability companies, and limited liability partnership all come equipped with liability protection for the owners of a business. However, this liability protection is not absolute and can leave the personal assets of some business owners vulnerable to business creditors and litigants. Pursuing liability of the owners of a company is commonly referred to as "piercing the corporate veil" or the "alter ego doctrine." Under Virginia law, piercing the corporate veil should only be granted in extraordinary circumstances where the business is operating as the owner's alter ego, is undercapitalized, or to prevent fraud. Operating as the owner's alter ego typically involves the commingling of funds and/or lack of corporate formalities. If successful, the plaintiff, or party pursuing the lawsuit, may be able to recover assets from the individual owners of the company.
For a business litigation consultation, contact the Virginia business and litigation lawyers at McClanahan Powers by e-mail or phone at 703-520-1326. All calls and e-mails are returned within 24 business hours.
Business Litigation Attorneys
Our business attorneys are experienced in both asserting and defending claims regarding piercing the corporate veil and alter-ego theories. The stakes in these claims are often very high for small businesses, given that most business owners believe that they are protected by the company's liability protection. This can be devastating to a business owner and their family if it is not properly handled. We strongly encourage you speak with an experienced and knowledgeable Virginia business lawyer who can assist in defending your legal rights.
Business Litigation Consultation
To arrange a business litigation consultation, please call the Virginia litigation and business attorneys of McClanahan Powers at 703-520-1326. Or, to send an e-mail, please complete and submit the online form on this website. Flexible appointment times and payment options are available.