We have looked at the laws governing veil piercing in New York, Wyoming, Texas, and Maryland. Veil piercing is available in most other states in varying degrees, but it bears repeating that limited liability is the rule and piercing is the rare exception to be applied only in cases involving exceptional circumstances. The cases we discussed here are merely a snapshot of veil piercing laws in different states and examples of situations where courts allowed veil piercing, not necessarily indicative of that particular state’s business-friendliness, as veil piercing is highly fact-intensive. As always, business owners would be well advised to adhere to corporate formalities, separate the entity’s and the member’s finances, and adequately capitalize the entity.
This posting is intended to be a planning tool to familiarize readers with some of the high-level issues discussed herein. This is not meant to be a comprehensive discussion and additional details should be discussed with your transaction planners including attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. This article should not be treated as legal advice to any person or entity.
Steps have been taken to verify the contents of this article prior to publication. However, readers should not, and may not, rely on this article. Please consult with counsel to verify all contents and do not rely solely on this article in planning your legal transactions.
About the Author
Shawn McBride – R. Shawn McBride is the Managing Member of The R. Shawn McBride Law Firm, PLLC, which helps clients in legal issues related to starting companies, joint ventures, raising capital from and negotiating with investors and outside General Counsel functions. Shawn can be contacted at: 407-517-0064, [email protected], or www.mcbrideattorneys.com.
 Greenhunter Energy, Inc. v. W. Ecosys. Tech., Inc., No. S-14-0036, 2014 WL 5794332 (Wyo. No. 7, 2014), at 11.